Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. PPHE Hotel Group Q3 RevPAR down 50% on 2019 levels
There’s a Q3 trading update out from PPHE Hotel Group [LON:PPH] this morning, which paints an interesting picture. Average room rates are 87% of the Q3 ’19 level, yet total revenues are 62.5% of those achieved two years back. That plots to a RevPAR figure which is just over 50% of the corresponding 2019 print. Whilst the company remains in a strong financial position and has more cash on hand now than it did three months ago, investors may be left feeling subdued by the momentum here.
#2. Foxtons Q3 sales revenues are significantly higher
Foxtons [LON:FOXT]have also updated the market with Q3 numbers today. For the year to date, revenues are up by 28% and the underlying market has evidently been through something of a cycle, with the post-pandemic glut of rental properties which was widely reported as depressing rents now having been absorbed. Rental prices are now back at pre-pandemic levels, whilst sales revenues are significantly higher too – up 60% on the 2019 number. With a strong pipeline the company notes it has good momentum heading into Q4.
#3. Lloyds Banking Group Q3 numbers around 20% higher than analyst forecasts
Finally, Q3 numbers from Lloyds Banking Group [LON:LLOY] beat expectations this morning, thanks to the pace of post-pandemic recovery. Profits came in around 20% higher than analyst forecasts, thanking part to a meaningful reduction in the bad debt provision being made for COVID-related defaults. The much watched RoTE (Return on Tangible Equity) figure is now expected to be over 10% for the full year.