Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Exceptional costs hit Wizz Air operating profits
Low cost airline Wizz Air [LON:WIZ] has published Q1 numbers this morning with revenues up less than 2% year on year and passenger numbers broadly flat. Operating profits have dropped by 44%, however, with higher depreciation and wet-lease costs to cover engine-related groundings being cited as the driver here. Management are also upbeat over the near-term outlook, noting that capacity is stabilising and that there is scope to optimise operations, too.
#2. Pets at Home revenue growth sluggish but vet services march higher
Q1 numbers are also out from Pets at Home LON:PETS with revenue growth up just 1.5%, a shadow of the 10.2% seen a year ago and whilst inflationary pressures are easing, pricing in the sector post-pandemic had clearly become an issue. However, regardless of that, income from the vet side of the business continues to bound higher, up 17%. Full year guidance remains unchanged, with resilient gross margins also being reported.
#3. Profits upgraded at Next as Q2 exceeds expectations
The fashion and homeware retailer Next LON:NXT have their Q2 numbers out today with full price sales up 3.2%, ahead of expectations and especially noteworthy given the poor weather at the start of the summer. Overseas online sales were also something of an outlier, performing significantly better than expected and up by 21.9%. That’s resulted in the company increasing its full year profit guidance, as a result of both additional sales and cost savings.
