Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. IAG’s first Q1 profit since COVID
Q1 numbers from IAG [LON:IAG], the company behind airlines including British Airways and Iberia, have been issued today. They have posted their first Q1 operating profit since before the pandemic, with strong yield performance and lower oil prices combining to create favourable conditions. Full year operating profits are now expected to come in at the upper end of previously issued guidance. Capacity for 2023 is expected to be at 97% of 2019 levels.
- Three Quick Facts: The Restaurant Group, MP Evans, Sportech
- Three Quick Facts: Halfords, The Restaurant Group, TekCapital
- FTSE 100 at the close: Intercontinental Hotels, Taylor Wimpey, Persimmon
#2. IHG’s strong growth in room revenues
Keeping with travel and hotels group IHG [LON:IHG] also has Q1 numbers out today. Revenue per available room on a global basis is up 33% from the same period a year ago although rates in EMEA were some 64% higher. Only China now lags the pre-pandemic comparatives using this metric. Owing to the timing of last year’s reopening of global travel, management note that the comparatives will get tougher from Q2 and that macroeconomic headwinds may end up weighing, too.
#3. The Restaurant Group: PE play takes £10m stake
The Restaurant Group [LON:RTN] has notified the market that a Cayman-based private equity play has taken a stake in excess of 3% in the business. Shares jumped 15% at the end of last week around the time the investment was made and there’s no shortage of opinions that the company – which includes the Wagamama brand – remains undervalued by the market.
