Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
IAG
Full year results are out from IAG LON:IAG this morning, the owners of British Airways. COVID has hit global travel hard, with this being reflected in the numbers. Passenger revenues are off 75% and although air freight may have provided some support, total income is still off by almost 70%. That’s resulted in the EUR3.3bn profit of 2019 morphing into a EUR4.3bn loss a year later. Comments from management are considered in tone, acknowledging the fact that overcoming the public health crisis has to come first and that the pent up demand for travel will follow. There is an appeal for common testing standards and the adoption of digital health passports to speed reopening but the table banging seen by others is absent. The note adds that liquidity is strong but no guidance is being offered for 2021 given the ongoing uncertainty.
Pets at Home
There’s a short trading update form Pets at Home LON:PETS out this morning, revising data released at the start of last month. The company notes that despite the caution it had expressed regarding COVID and Brexit-related supply disruption, performance over the last eight weeks has been better than expected. As a result, pre-tax profits for the full year are now forecast to come in at £85m, ahead of the previous guidance of £77m.
Rightmove
Full year results from Rightmove LON:RMV are also out today. These show revenues down 29% and profits off by 37%, after the company offered 75% discounts to customers in the second quarter. Given the housing market has remained active throughout the year, that may end up being seen as overly generous, but investors stand to be placated by a resumption of dividend payments. The company notes that there is a risk of macroeconomic uncertainty ahead but with the government seemingly still prioritising house price inflation, that could well provide valuable protection, at least in the short to medium term.
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