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.

11 Apr 19

Quarterly Research Outlook

We’re just over three months in to 2019 and we’ve seen a 10% UK market rally, retracing much of the Q4 decline, such is the nature of fickle market sentiment. That said, many of the issues we wrote about three months ago that were impacting markets remain: notably Brexit, trade wars, geopolitics and global monetary policy. The 2019 rally thus far feels somewhat fragile, with competing forces of optimism on a potential trade deal which could underpin the rally, against the deterioration in underlying economic data that could ultimately undermine the recent market gains. In this context, we look at what the lead indicators and the market are telling us about the industrial cycle and the stocks most exposed to various industrial trends. The Q4 derating in short cycle industrials and autos had been vicious and while these sectors have seen a more solid footing in 2019, with earnings downgrades being priced in, it will likely take a trough in lead indicators before short cycle stocks can start to perform again and re-rate relative to the market.

Companies: ARS CYAN HYR LIT SOM ABBY AMS AMER ANX ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE DTG DEMG EMR FPO FST GTLY GENL GOR GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO INDI JHD JOG KEYS KCT KGH LAM LOK MACF MNO MANO MOD MKLW OXIG PCA PANR PARK PGM PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TRAK TRI VNET VTC ZOO ZTF

16 May 19

Hopeless

The group’s activities (especially Tour Operator) have continued to be impacted by the tougher pricing environment resulting from the stiffer market competition and the uncertain consumer environment during the first half of the year. And these trends will continue for the rest of the year. Therefore, management has guided that the underlying operating profit in H2 will be lower than in the same period last year, which implies that the FY underlying operating profit will be at least 35% lower than current consensus expectations.

Companies: Thomas Cook Group

10 May 19

LIBERUM: Air Partner* - Flat FY profits but encouraging progress in the US and Freight

Flat PBT was in line with management's guidance and our forecasts. Encouraging progress in the US and Freight represented sustained momentum in areas that were the focus of recruitment in previous years.

Companies: Air Partner

16 Apr 19

Q1 2019 AIM Review

2019 started well for investors with U.S. stocks rallying on the back of trade talks between China and the U.S. resuming. Sterling rebounded in Q1 2019 as expectations built the UK would avoid a “no deal” Brexit, providing a further tailwind to more internationally focused UK companies. This sentiment spread across the globe and filtered its way down into small caps.

Companies: PRSM KMK SYS RAI MNO CCS MANO CBOX KGH

03 May 19

The Monthly May 2019

How small- and mid-cap quoted companies make a substantial contribution to markets, employment and tax revenues.

Companies: OPM AVO AJB ARBB CMH CLIG DPP FLTA GTLY GDR HAYD KOOV LWRF MCL MUR OXB PCA PHP RE/ STX SIXH TRX TON VTA W7L

10 May 19

Relatively good trading performance

Compared to its European legacy competitors, IAG released a positive first quarterly operating profit despite the challenging industry conditions (higher fuel price, negative FX impact and lower fares resulting from the higher capacity growth in the industry).

Companies: International Consolidated Airlns Grp

17 May 19

Reassuring trading performance

easyJet published an encouraging set of H1 19 results, in line with consensus expectations. As expected, the lower air fares resulting from fierce industry competition and a higher cost environment deepened the operating loss in the first half. However, despite the continuing challenging trading environment and macro-economic uncertainties in Europe, the FY19 guidance remains unchanged.

Companies: easyJet

15 May 19

Europe remains challenging

Compass released a good set of H1 19 results. The encouraging organic growth was mainly driven by the solid performance in North America and the good improvement in Europe (especially the significant Defence contract wins in the UK). However, several major contracts in Europe still in the ramp-up phase, higher mobilisation costs and the weaker high street trading environment in the UK, should all continue to put pressure on profitability for the rest of the year.

Companies: Compass Group

21 Aug 18

Off to the races as NFL season draws closer

The US sports betting market has the potential to be significantly large. However, lack of federal level legislation, sluggish state by state legislative processes, and other limiting factors will cause a likely drag on the sport betting market’s full potential. The American Gaming Association estimates at least $150bn is wagered annually with offshore books, which implies a $10bn - $12bn revenue market. We estimate, onshore online sports revenue in 4 - 5 years of $6bn (table 6, p14) should be achievable across 25 States where Daily Fantasy Sports is legal in 22 states, if we include California, implies a market as large as $7.5bn in revenue. UK listed operators not necessarily only winners as US operators, Stockholm listed and some private companies make early inroads. Sports betting live in New Jersey, Mississippi, Delaware and Nevada, with West Virginia and Pennsylvania expected to follow soon.

Companies: GVC WMH PPB PTEC SPO 888 GAN NKTN KAMBI GIG SGMS IGT

27 Mar 19

Rally seen in the first quarter stalls

Parliamentary and Brexit developments continue to hold centre stage, although the precise path forward remains as unclear as ever. The uncertainty over Brexit, worries over a possible slowdown in the US and the outlook for global economic growth generally have all contributed to the recent falls in markets. While the rally seen since the start of the year has petered out, most indices have still made progress. In Share News & Views we comment on Bloomsbury Publishing, Bonhill Group*, Braemar Shipping Services*, Burford, Clarkson, LightwaveRF*, Marshall Motor Holdings and Synectics*.

Companies: AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LWRF LSAI NKTN PCF SNX TCN VRE W7L

08 May 19

LIBERUM: Elegant Hotels* - Solid H1 leaves our forecasts unchanged

Interims are in line with expectations noting a resilient and stable performance YoY. Visitors from the UK grew 7.0% in the year with all-inclusive product outperforming and growth from the US remains robust.

Companies: Elegant Hotels Group

16 May 19

£2 stake limit hurts retail, in line with expectations

William hill announced its trading update for the 17-week period ending 30 April. Revenue growth came in at 2%, driven by online and the US, and was partly offset by a weak retail segment. Management continues to expect full-year numbers to be in line with expectations while the impact of the £2 stake limit was also as expected. We do not expect any significant change to our estimates or recommendation.

Companies: William Hill

08 Jun 17

N+1 Singer - Small-cap quantitative research - Value screen periodic refresh and 9 focus stocks

We have completed another refresh of the value style screen, first established as of 12 May 2015. As usual the screen selected the 25 stocks exhibiting the most extreme value characteristics from our universe, and we have chosen 9 stocks to focus on. Since the last refresh as of 8 November 2016, the day before the US presidential election result was known, the screen has performed strongly (outperforming the small-cap index by 12.9pp on a weighted basis) with our focus stocks doing even better. The indication is that smaller value stocks perform well in a steady “risk on” environment. The new basket contains many UK consumer demand and emerging market plays. We find the latter exposure interesting at this juncture.

Companies: RAV GOAL VTU BILN INL AEP MAYA IPF OPM

26 Feb 18

The lift effect

Air Partner (AIR) has upgraded short-term profit guidance and continues its longer-term strategy to build a world-class global aviation services group. Although the broking market brings inherent volatility, the group is international, broadly based and diversified, with a tendency to add more stable income flows from its newer Consulting & Training business. Cash-rich, it is well-placed to add and grow complementary businesses.

Companies: Air Partner

23 Apr 18

Value screen refresh and 10 focus stocks

We have completed another refresh of our value style screen, first established as of 12 May 2015. As usual the screen selected the 25 stocks exhibiting the most extreme value characteristics from our universe, and we have chosen 10 stocks to focus on. Since the last refresh, two days before the last general election, which resulted in a hung parliament, the screen has performed a little better than the small-cap index with our focus stocks outperforming by about 500bps. The weighting to UK consumer stocks noted last time detracted from performance, which came as little surprise given our cautious stance, much discussed in our other strategy work this year. One might have expected more consumer exposure in the refreshed screen given this year’s severe underperformance, but it appears forecasts have been similarly downgraded, keeping much of the sector outside our value criteria

Companies: AUG EHG GOAL MMH RTHM SDY TEF VANL

09 Oct 18

Arena Events Group plc Investor Overview

01 Apr 19

CEO Video - Richard Darwin, The Gym Group

Premium

06 Jun 17

DP Poland - Share placing

13 Dec 18

DP Poland - Corporate update

28 Nov 18

Ten Lifestyle Group Trading Update

12 Dec 18

DP Poland - Trading update

21 Feb 18

Veltyco Group (VLTY) ShareSoc presentation February 2018

18 Sep 18

DP Poland - H1 2018 results

10 Apr 19

Arena Group plc (ARE) FY results to 31st December 2018

15 May 18

Interim Results Update for 6 months to 28th February 2018

10 Dec 18

Executive interview – Bet-at-home

04 May 18

DP Poland - Trading Update

01 Jul 18

Ten Lifestyle Group (TENG) Investor presentation at Mello South June 2018

03 Apr 18

DP Eurasia N.V CEO - Aslan Saranga

Premium

17 Nov 17

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

Latest Content

easyJet

Reassuring trading performance

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17 May 19
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William Hill

£2 stake limit hurts retail, in line with expectations

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16 May 19
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Thomas Cook Group

Hopeless

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16 May 19
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Tui

Rebounding from the bottom

After two consecutive profit warnings due to the 737 MAX grounding and a tough pricing environment resulting from the summer heatwave in 2018, the weak Q2 19 figures were quite in line with expectations.

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15 May 19
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Compass Group

Europe remains challenging

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15 May 19
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EKT TENG CLIN GAN SRB SAV KRS SIXH SDI ARE

Small Cap Feast

Essensys plc—a provider of mission-critical SaaS platforms and on-demand cloud services to the high growth flexible workspace industry, plans to join AIM. Offer TBC, expected 29 May 2019. Induction Healthcare Group plc—a healthcare technology company focused on streamlining the delivery of care by Healthcare Professionals looking to join AIM. Expected raise of £14.58m at 115p, market cap of £34.07m. Expected 22 May 2019. SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

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15 May 19
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Paddy Power Betfair

Good Q1, UK regulatory impact seen at higher end of earlier expectations

Paddy Power Betfair’s Q1 19 revenue came in at £478m, up 17%. The performance was driven by strong growth in the US and Australia, which offset the weakness in retail and online. Trading in April was in line with expectations. Management expects full-year profitability to meet estimates in spite of the higher than expected impact of the £2 stake cap in the UK. We will revise our estimates marginally downwards but do not expect any significant change in our recommendation.

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14 May 19
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Deutsche Lufthansa

Disappointing April traffic figures

We expect the carrier’s number of passengers to increase by 3.0% in 2019. Through to April, the number was up by 3.0% but April itself was slightly disappointing.

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