Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. easyJet maintains altitude despite Middle East turbulence
easyJet LON:EZJ has published its Q1 trading update today for the period to 31st December, noting an improvement in both demand and bookings duirng the second half of the window and an ongoing upbeat performance from the holidays division. Conflict in the Middle East did have a short term impact on bookings and continues to weigh but passenger numbers were up 14%, load factors down 1% and ancillary yields added 6%. Management add that momentum for the year ahead remains positive.
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#2. Continued market outperformance for JDW
JD Wetherspoon LON:JDW has numbers out for the 25 weeks to 21st January with like for like sales up 10.1% and third party metrics showing that the pub co continues to outperform the wider sector in terms of growth. Despite inflation reducing, management note that wage an inflation costs remain far higher than pre-pandemic levels, but that despite this full year forecasts remain in line with market expectations.
#3. Revolution Bars: rising wages of young not filtering through to spend
Keeping with the hospitality industry and Revolution Bars LON:RBG also have an H1 update out today. Sales in the final four weeks of the year were up 9% from the 2022 figure, making for the best festive period since the pandemic, although management note a slow start to the new year.
There’s concern that the wider cost of living crisis means that whilst the business won’t benefit from rising wages amongst younger demographics, it is adversely impacted here as a result of staff demographics. Expectations are for full year EBITDA to be in the £3m-£3.5m range, meaningfully down YoY.
