Leisure, Tourism & Travel

Leisure, Tourism & Travel equity research

Explore the most viewed and latest equity research and media content for companies within the Leisure, Tourism & Travel sector. Companies that operate in this sector provide goods and services related to: airlines, gambling, hotels, tourism, leisure & entertainment.

Leisure, Tourism & Travel

Explore the latest equity research and media content for companies within the Leisure, Tourism & Travel sector. Companies that operate in this sector provide goods and services related to airlines, gambling, hotels, tourism, leisure & entertainment.

15 May 18

LIBERUM: Elegant Hotels* - Outlook improved with top-line growth accelerating

Elegant offers a 9% FCF yield, 5% dividend yield, and is trading at a 40% discount to NAV. The group has seen improvement in occupancy in all its hotels and revenue visibility for the rest of the year sits at 95%, with greater confidence in the outlook vs. the same time last year.

Companies: Elegant Hotels Group

15 May 18

Opening up a significant market

The Supreme Court of the USA (SCOTUS) yesterday voted 7-2 in favour of repealing the Professional and Amateur Sports Protection Act of 1992. Seven justices voted in favour of repealing with the court quoting: “Congress can regulate sports gambling directly, but if it elects not to do so, each State is free to act on its own. Our job is to interpret the law Congress has enacted and decide whether it is consistent with the Constitution. PASPA is not. PASPA “regulate[s] state governments’ regulation” of their citizens, New York, 505 U. S., at 166. The Constitution gives Congress no such power. The judgment of the Third Circuit is reversed.”

Companies: GVC WMH PPB PTEC

16 May 18

£2 FOBT limit and self-help estimates

A £2 max stake, is a worst-case scenario for operators with betting shops, we estimate (table 1, p2) it will reduce operators’ revenues and profits significantly, though these estimates exclude any self-help initiatives available to management teams, such as shop closures, automation (SSBTs) and further omnichannel rollout to mitigate the impact of lower B2 limits. Furthermore, we estimate increasing POC tax from 15% to 20% for online (table 3, p4), would offset the taxes lost on FOBTs for the Treasury and help fund losses to the horse racing industry, the latter likely to be affected by the lower B2 limits. The increased POC tax would likely lead to further consolidation in a highly fragmented UK online market.

Companies: GVC WMH PPB PTEC

15 May 18

Market stabilising

Elegant has this morning announced H1 results that should position it well to deliver our FY expectations. YoY improvements have been delivered across most KPIs and the company has confirmed trading is in line with expectations, we are therefore leaving our full year forecasts. We believe the shares represent good long-term value, trading below IPO price and at a 41% discount to NAV, with a yield of 4.7% which remains ahead of the sector average with solid cover in excess of 2.3x.

Companies: Elegant Hotels Group

17 May 18

FY18 Interims

Patisserie Holdings announced H1 FY18 interim results to 31 March 2018 earlier this week, showing continued strong growth and a robust balance sheet, despite industry pressures across the casual dining and high street spaces.

Companies: Patisserie

18 Apr 18

LIBERUM: GAN plc* - Positive contract news in Italy and the USA

This week GAN has announced further market share gains in Italy and a key extension with Paddy Power Betfair in New Jersey. Both of these deals support forecasts.

Companies: GAN Plc

21 May 18

AAMS signs off on SNAI deal

PTEC this morning announces that it has received consent from Agenzia delle Dogane e dei Monopoli (AAMS), the Italian regulator regarding the acquisition of SNAI and as result the Initial acquisition of c. 70.6% of SNAI will complete in June as opposed to the 3Q18 as originally intended.

Companies: Playtech

30 Apr 18

Key takeaways from the Consumer reporting season

With a busy reporting season behind us we use this note to take stock. Stepping back we pull out the key themes which emerged across the sub-sectors we actively follow in the consumer space. On balance there was more cause for optimism. This is supportive of our top-down view that there is scope for a better H2 for consumer related stocks as cost headwinds ease and pressure on disposable income moderates. We also take a close look at 7 stocks we actively research and which reported over March and April. For each we use charts to depict the key takeaways from an investment case perspective.

Companies: DOM BAG NICL CHH GOAL RTN GYM MARS CVSG

14 May 18

LIBERUM: City Pub Company* - Robust trading and pipeline building

City Pub is on track to open ten sites this year and is already building its pipeline with another under development for 2019. This will bring its trading estate to 44, compared to 33 at IPO.

Companies: City Pub Group

09 Nov 17

AIM Journal

Companies: RWS G4M SRC PIM GAN ARTA

30 Jan 18

Strong Q4 resulting in a beat

Strong Q4 trading update from Domino’s this morning. Group system sales grew by 18% with good performances across all territories. UK LFL’s grew by 6.1% ex splits and by 4.8% on a 52 week basis. International commentary and metrics make positive reading also. Net, the company is guiding to the full-year outcome being “slightly ahead of market expectations”. We are 4% ahead of consensus at the PBT level so keep our numbers unchanged. This is a pleasing update and demonstrates the company got back on track in H2 after a mixed H1. Capex spend is less in FY17 vs guidance but relates to phasing of the Warrington supply chain centre. We hope to get more clarity during the day. Going into H1-18 the company will be up against soft comps, especially Q1 and we also see it as a major beneficiary of the World Cup in June. On our forecasts the shares are trading on a FY18 P/E of 21x having been closer to 25x before the H1-17 LFL weakness. We see scope for the rating to move up and expect a positive share price reaction today.

Companies: Domino's Pizza Group

08 Mar 18

Good set of finals and strong start to FY18

Finals this morning have come in at upper end of market expectations with PBT +10% to £94.4m and EPS +14% to 15.1p vs our 15.2p. As signalled in the pre-close update, the UK LFL was +4.8% with a strong bounce back in H2 following a weak H1. Commentary around the international operations is positive and management is confident about further progress in this area, albeit the 4 territories only accounted for <1% of FY17 EBIT. Given last years setback re a weak start to FY17 (Pizza Hut competition, ineffective marketing and low consumer sentiment) we are not hugely surprised by a much better start to FY18. UK LFL’s after 8 weeks are reported at +7.1% - this is a good print we feel. We expect sentiment today also to be buoyed by the signalling of a further £50m of share buy-backs of which £18m has to date been completed since Jan. New store opening commentary is reassuring. We are at upper end of consensus so do not envisage much change to our PBT expectations, but see the risk to consensus on the upside. The shares currently trade on a FY18 P/E of 19x which in the context of the historical rating, international peers and ST growth expectations is not overly demanding. We currently have a Hold recommendation but expect investors to welcome today’s finals.

Companies: Domino's Pizza Group

20 Apr 18

Leaping into FTSE 100

By acquiring Ladbrokes Coral (LCL), GVC will become a FTSE 100 global gaming business, with pro forma FY18e revenues of £3.4bn. With strong brands, diversified revenues and a superior technology, GVC is well positioned to benefit from increased scale and we anticipate the deal to be highly accretive, due to the £100m+ cost synergies. At this stage, there are still many moving parts to our pro forma estimates, with particular uncertainty surrounding the outcome of the Triennial Review and ultimate FOBT stake limits. Irrespective of the outcome, strong FCF should rapidly drive down leverage, which peaks at 3.2x for a £20 FOBT scenario (2.7x for £2). Assuming a £20 stake limit, GVC trades at 10.7x EV/EBITDA and 13.3x P/E for FY19e, a c 5% and 19% discount to Paddy Power Betfair (PPB).

Companies: GVC

17 May 18

Ambition for competition

Performance in 2017 was one of progress at the core accompanied by a sharp reduction in net debt, aided by significant property sales proceeds. Progress is apparent in Williams Advanced Engineering (WAE) but the Formula One (F1) racing team remains the heart of the business. Performance on the track is a key determinant of group financial returns, but the changes to produce a more equal distribution of commercial rights are only likely in the medium term. Until then, progress will probably remain volatile, especially as competition on the track has intensified.

Companies: Williams Grand Prix

10 Oct 17

N+1 Singer - Domino's Pizza Group - Strong Q3 update suggesting H1setback is being overcome

Some better trading news from Domino’s this morning. After a difficult first half when UK LFL sales softened to a flat showing, the Q3 update reveals a UK LFL showing of 6%. We were anticipating a 3-4% showing. This pick up was partly supported by a softer 3.9% comp, favourable weather and a more effective marketing campaign. Total UK sales were up 12.1% and group system sales ahead by 20.8%. Commentary on new store additions and the Nordics/Switzerland is reassuring also. Management is signalling a full year outcome “at least in line with market expectations” which should be taken favourably. The shares have been firm coming into today’s update in anticipation of a good update and we expect them to react favourably given the metrics and tenor are better than anticipated. Using consensus forecasts the shares trade on a FY18 P/E of 20x with a c.3% yield. We see scope for the rating to nudge up given the company seems to be overcoming the H1 setback.

Companies: Domino's Pizza Group

16 Apr 18

Executive interview - PPHE Hotel Group

29 Nov 17

Ten Lifestyle Group - Investor Overview

04 May 18

DP Poland - Trading Update

17 Nov 17

Celebrating Domino's Pizza's 50th store in Poland

22 Mar 17

Capital Network's Ed Birkin talks On the Beach

18 Sep 17

DP Poland - Half Year Results 2017

02 May 16

Bitesize Briefings - GVC Holdings

19 Jul 17

DP Poland - Update on Store Performance H1 2017

15 May 18

Interim Results Update for 6 months to 28th February 2018

06 Jun 17

DP Poland - Share placing

27 Mar 17

DP Poland - Final Results 2016

02 Jun 17

Capital Network's Ed Stacey on AFC Energy

09 Mar 17

Capital Network's Ed Birkin on Goals Soccer

20 Apr 17

DP Poland - Interview with latest sub-franchisee in Gdansk

03 Nov 16

Executive Interview - bet-at-home.com (Deutsch)

Latest Content

Accor

Accor’s delicate shareholder relations

After JinJiang internationals, Accor’s largest shareholder with 12.32%, HuaZhu Hotels Group (China Lodging Group Ltd, NASDAQ: HTHT) announced its strategic investment in AccorHotels during its Q1 18 release and also indicated that they already hold 4.5% of Accor’s capital (just below the minimum reported level of 5%).

View

22 May 18
-
-

Playtech

AAMS signs off on SNAI deal

View

21 May 18
-
-

AFHP AOR GTLY ARE UVEN GAN PGD CNC TOOP

Small Cap Breakfast

Block Energy— UK based oil exploration and production company whose main country of operation is the Republic of Georgia. Raising £4m. Mkt cap £9.3m. Due early June. Codemasters Group— video game developer and publisher, specialising in high quality racing games. Offer TBA. Seeking £15m in primary. Due 1 June. Strongbow Exploration (TSX:SBW) intends to dual list on AIM. Holds rights to the South Crofty underground tin mine, a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June. Maestrano Group, a software company with operations in Australia (main country of operation), the UK, US and the UAE, is looking to join AIM. Offer TBC, expected late May. Yew Grove REIT—newly formed Company will pursue its investment objective by investing in a diversified portfolio of Irish commercial property. Offer TBA. Due Late May Team17 Group -video games label and creative partner for independent developers. 2017 revenues of £29.6m and Adjusted EBITDA of £12.9m. Raising £45.1m primary and £62.5m secondary at 165p. Mkt Cap £216.6m. Expected 23 May 2018 Serinus Energy -international upstream oil and gas exploration and production company. Its principal assets are located in Romania (development phase) and Tunisia (production phase). Raising c.£10m at 15p. Due 18 May. Mkt cap £32.6m

View

21 May 18
-
-

Ryanair Holdings

Brexit and oil price tarnish perspectives

Ryanair reported solid FY 18 results supported by the weaker fuel costs, although this should be the last time they decrease. The results could, however, have been higher without the pilot scheduling issue that led to a 17% yoy increase in staff costs. The main concern remains Brexit, while the UK AOC expires at the end of 2018. In FY19, fuel costs are expected to grow by €400m, which will strongly affect Ryanair’s FY results.

View

21 May 18
-
-

ZYTWMHNUMOCDOCAKEEHGPRSMWATRPPBGVCPTEC

Williams Grand Prix

Ambition for competition

View

17 May 18
-
-

Thomas Cook Group

Solid performance from the Airline business

The improved H1 figures were mainly driven by the strong Airline performance and increasing demand for summer holidays with significant growth to Egypt and Turkey. However, the margin remains under pressure due to cost inflation and oversupply in the UK.

View

17 May 18
-
-

Rank Group

UK gaming sector: Regulator delivers a harsh verdict

After many months of procrastination, the UK government has finally delivered a verdict on the fixed odds betting terminals (FOBTs), reducing stake limits from £100 to £2. Although not entirely a surprise, this is a disappointing result for the industry and will likely entail more than 3,500 shop closures. Also, while a decision has been made, there is still much uncertainty regarding timing and implementation. For online operators, there is a further blow, in the form of potential increases in gaming taxes at the next budget. This confirms recent speculation and is now widely expected to increase from 15% to 20%.

View

17 May 18
-
-

Patisserie

FY18 Interims

View

17 May 18
-
-

BOTB LID OPTI

Morning Note

Best of the Best (BOTB): Corp Highly encouraging pre-close FY18 trading statement | LiDCO (LID): Corp HUPdate | OptiBiotix (OPTI): Corp Building the foundations for global LP-LDL probiotics