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.

25 Mar 20

LIBERUM: GAN* - SaaS resilience as outlook confirmed

GAN has provided an update today on the Italian and US real-money internet sports betting outlook, as well as the momentum they are seeing in their core Simulated Gaming operation. Management have confirmed current guidance, which underscores the high underlying growth and the diversified resilience of their SaaS model. The company is on-track for a NASDAQ listing, hopefully in Q2. No material change to forecasts or our Target Price of 200p

Companies: GAN Plc

27 Mar 20

LIBERUM: DP Eurasia* - Turkey trading strong; shares too cheap

While the markets appear to appreciate the relative resilience of food delivery businesses at a time when increasing number of people around the world are forced to stay at home, shares of DP Eurasia are the second worst hit amongst the various global Domino’s franchisees and food delivery service provides/aggregators. The current share price extremely undervalues the company applying no value for future value creation and certainly placing no value on the growth seen across all its markets. DPEU exited 2019 with very strong performance in Turkey, which has accelerated in 2020, and in Russia there is a pro-active plan to restore it to historic rates of growth. The shares are on a FCF yield of 20%, a PE of only 7x for a 2019-22E EPS CAGR of 54%, net cash by FY’23, and an EV/EBITDA 3.4x.

Companies: DP Eurasia

01 Apr 20

COVID-19 update is reassuring

Air Partner has issued a further COVID-19 update. The Group has had a strong start to FY21, with both February and March delivering profits well ahead of both budget and the prior year. The current indication is that the Group has delivered around £2.4m of underlying PBT in these months. Management’s expectation is that business will now slow as the pandemic continues to restrict aviation activity globally, though the order book for April is encouraging. In response, management has implemented a series of temporary cost management initiatives and made use of the available government grants and benefits to significantly reduce the cost base for the coming months. At the end of March, adj. net debt stood at £5.0m. The Group has access to a total debt facility of £14.5m, comprising of a £1.5m overdraft and a £13m RCF. We are reassured by today’s update and management has reiterated its confidence that Air Partner is effectively positioned to cope with the challenges and uncertainty posed by COVID-19.

Companies: Air Partner

21 Oct 19

Quarterly Research Outlook Autumn 2019

Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.

Companies: ABBY AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CDM CSRT TIDE CYAN DTG DEMG ELM EMR FPO FDEV GTLY GENL GHH GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KAPE KEYS KWS KCT KGH LAM LIT LOK MACF MANO MOD OXIG PCA PANR APP SRE PHC PMO RBW RMM RBGP REDD RSW RNO ROR SUS SCPA SEN SHG SOLG SOM SUMO TM17 INCE TWD TRAK TRI VNET VTC ZOO ZTF

30 Jan 20

Strong sales growth but higher debt is a concern

JDW’s Q2 performance was slightly ahead of our estimates. The publican benefited as Britons continued to go out to eat and drink over Christmas and the New Year. Management’s disclosure of a further increase in FY19/20 net debt is a concern (although it is attributable to higher than expected capital expenditure). No significant changes to our financial estimates.

Companies: J D Wetherspoon

18 Mar 20

Industry challenges impacting performance

The issues faced by the aviation industry as a result of the Coronavirus have been widely reported. Whilst increased demand for services such as repatriation flights, emergency cargo, and short term charters has benefited performance, a wider decline in demand across both the Charter and Safety & Security divisions is impacting performance. The exact magnitude of this is difficult to quantify and we have therefore withdrawn our forecasts. Across the Group, costs are being tightly managed to preserve cash and to maintain sufficient working capital in the business to support customer demand throughout this crisis. Accordingly, the Board expects that it will not be in a position to make a recommendation on dividend payments until the crisis has passed, and a clearer outlook has emerged.

Companies: Air Partner

19 Mar 20

Dart Group*

Industry volatility – FY20 guidance withdrawn

Companies: Dart Group

01 Oct 19

STATE OF CHARGE - INVESTMENT OPPORTUNITIES IN EV CHARGING

Government bans on new fossil fueled vehicles in many major economies are likely to drive significant growth in electric vehicles (“EVs”) over the next twenty years. This will create growth in electricity demand from EV charging. The volume of energy to be supplied creates opportunities for both supply companies and generators and the provision of charge points is already creating a new industry. However, the timing of this demand puts pressure on local distribution infrastructure. While smart charging and vehicle to grid technology offer solutions, we believe these will only be partial given likely charging behaviour and as a result there will be demand for additional grid capacity and for other solutions. These other solutions include charger located storage and distributed generation.

Companies: CNA NG/ YU/ DRX GOOD RED SMS IKA AFC

04 Dec 19

LIBERUM: Loungers* - Outperforming with LFL, unit and margin growth

Loungers continues to outperform, delivering the scarce trinity of LFL sales growth (5.4%), unit growth (10 openings) and margin growth (40bps). This drove a 22% increase in Revenues and 26% increase in EBITDA in the first half of FY20E.

Companies: Loungers

23 Dec 19

Solid interims - roll out to continue into next year

The Fulham Shore Plc (“FUL”) released interim results for the 6m period ended 29 September 2019 in-line with expectations as strength in the Franco Manca portfolio more than offset weather-related contraction at The Real Greek. We make minimal changes to our underlying forecasts and introduce a forecast for 2021. Nine restaurants have been opened so far in this financial year (year end March 2020) and the Company is now guiding a further eight to ten in the next financial year. We note that the financials now incorporate IFRS 16 for Leases which came into effect on January 1 2019. IFRS 16 does not impact cash balances but does lead to some material changes to the presentation of the financial statements.

Companies: Fulham Shore

03 Feb 20

LIBERUM: Safestay* - Trading in line, momentum building

Safestay grew revenues by +25% to £18.3m in FY19, EBITDA in line with expectation at £3.8m (pre-IFRS 16). Both occupancy (+170bps) and average bed rates (+5%) contributed to top line growth as Safestay benefited from good demand and efficient revenue management.

Companies: Safestay

03 Feb 20

Promising outlook despite the 737Max’s negative impacts

Strong year-end holiday traffic and buoyant revenue environment contributed to Ryanair’s satisfying quarterly earnings. The reassuring outlook is supported by the robust profitability and less negative macro conditions, which may hopefully offset the 737Max’s grounding impacts.

Companies: Ryanair Holdings

21 Feb 20

In line results but lack of catalysts

Accor released no surprises in the FY19 results. The numbers look very good but maybe the group should make an effort to boost its like-for-like growth on top of benefiting from the various acquisitions.

Companies: Accor

02 Mar 20

LIBERUM: Safestay* - Bratislava and Warsaw acquisitions complete, Prague cancelled

Safestay has completed on the previously announced acquisition of the Bratislava and Warsaw hostels from Dreamgroup for €2.7m, expanding its network across Europe. The acquisition of the third hostel, ‘Prague Museum’, has been cancelled however and will not proceed.

Companies: Safestay

02 Mar 20

Testing its resilience

The Spanish legacy airlines announced mixed FY19 results and commented that it was impossible to quantify the hit on its FY20 revenue from the Coronavirus. Known for its industry-leading profitability, can IAG stay strong under the pressure of a disaster from an epidemic?

Companies: International Consolidated Airlns Grp

09 Oct 18

Arena Events Group plc Investor Overview

28 Feb 20

Morning Report: BA owner IAG takes hit as it cuts back on more flights due to coronavirus

04 May 18

DP Poland - Trading Update

09 Dec 19

Executive interview - bet-at-home at EKF 2019

16 Apr 18

Executive interview - PPHE Hotel Group

08 Oct 19

Air Partner (AIR) H1 results October 2019

24 Sep 19

Investor Update: TUI delivers solid fourth quarter update

24 Sep 19

Everyman Media Group (EMAN) H1 results September 2019

20 Jan 20

The City Pub Group grows

23 Sep 19

Investor Update: Thomas Cook enters compulsory liquidation

21 Oct 19

Everyman Media Group (EMAN) H1 results presentation September 2019

19 Sep 19

City Pub Group shifts focus to developing pub estate and improving dividends

29 Nov 17

Ten Lifestyle Group - Investor Overview

27 Jun 19

Greene King - Preliminary results video 2018/19

21 Oct 15

Executive Interview - Tourism Holdings Ltd

Latest Content

Soft Q4; COVID-19 hits operations

OPAP reported soft Q4 19 numbers, missing consensus estimates. The growth in VLTs and sports betting offsets the greater-than-expected weakness in lottery. In light of the COVID-19 outbreak, the firm has suspended the dividend proposal temporarily and extended the OPAP store and gaming hall closures. Following the update, we will be lowering our estimates and target price. Additionally, the firm announced the departure of CEO Damian Cope, who will leave the firm at the end of his contract in May 2020.

OPAP

03 Apr 20
-

COVID-19 update is reassuring

Air Partner

01 Apr 20
-

Cenkos: Arena Events Group Plc -- Equity placing to fortify the balance sheet

Arena's planned £9.5m share placing will substantially strengthen its balance sheet and, together with various cost saving measures being undertaken, should help to see the company through the coronavirus crisis for the foreseeable future. Given the uncertainty around how long it will take before normal event scheduling resumes, we withdraw our forecasts and place our rating Under Review, which we will revisit once visibility improves.

Arena Events

27 Mar 20
-

LIBERUM: DP Eurasia* - Turkey trading strong; shares too cheap

DP Eurasia

27 Mar 20
-

LIBERUM: GAN* - SaaS resilience as outlook confirmed

GAN Plc

25 Mar 20
-

Morning Note – 23 March 2020

Altitude Group (ALT): Corp | Barkby Group (BARK): Corp | Byotrol (BYOT): Corp | Tristel (TSTL): Corp

ALT BYOT TSTL BARK

23 Mar 20
-

Heinz Hermann Thiele acquires 10% of the carrier's shares

Deutsche Lufthansa has to be majority-controlled by German shareholders. On 31 December 2019, 67.3% of the shares were controlled by domestic shareholders. During the last few days, Thiele has acquired a 10% stake.

Deutsche Lufthansa

21 Mar 20
-

Hurt by COVID-19-led slashed traffic

On top of supportive revenues, Autogrill’s FY19 net result took advantage of positive FX and one-off items. Conversely, its FY20 earnings will to be considerably affected by the reduced traffic numbers due to the COVID-19 pandemic.

Autogrill

20 Mar 20
-

State aid provided, others need to accept

The Norwegian government willing to guarantee up to NOK 3.0bn… … depending on acceptance from other parties to unlock max amount Normalization of demand is still uncertain

NORWEGIAN AIR SHUTTLE AS

19 Mar 20
-

PPHE Hotel Group - Cost cutting for uncertain times

The trading update, following the update on 12 March 2020, highlights the expected drop in demand due to the COVID-19 virus, and strong actions by management to cut costs and preserve cash in the uncertain environment. We leave our forecasts unchanged following our recent downgrade of EBITDA for FY20e by 14%, but now assume no dividend payment in FY20, following the cut of the proposed final dividend for FY19 of 20p. The shares are trading at a discount of 68% to the EPRA NAV, and the majority of the hotels are freehold assets.

PPHE Hotel Group