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Summary
- Whitbread's revenues plunged by 76.9% year on year in H1 FY21
- Company is focusing on expansion in Germany, added 13 hotels in H1 FY21.
- Plus500 Ltd. has reported a revenue increase of 96% year on year in Q3 FY20.
- Customer income remained second-highest at the quarterly level in Q3 FY20 followed by a peak in Q2 FY20.
Whitbread Plc (LON:WTB) and Plus500 Ltd (LON:PLUS) are consumer discretionary and financial services stocks, respectively. Shares of WTB were down by 4.50%, and shares of PLUS were up by 0.20%, from their last closing price (as on 28 October 2020, before the market close at 8:10 AM GMT).
How does Whitbread Plc performing amid lockdown closures?
Whitbread Plc is the FTSE 100 listed hotel company, which is engaged in a single business unit, Premier Inn. Premier Inn provides services in regards to accommodation, food and beverage, both in the UK and internationally.
H1 FY21 operational highlights as reported on 27 October 2020
- 97% of UK Hotels were functional by the end of July 2020.
- In August 2020, the UK total sales have improved and, it was down by 38.50% year on year supported by the positive impact of the Eat Out to Help Out scheme.
- The number of Hotels in Germany increased from 6 to 19 in the period of 6 months from March to August 2020. By October, 21 Hotels have become operational.
- Rights issue of £1 billion was completed in June 2020, enhancing the financial position.
- The Company has announced the acquisition of further 15 hotels in Germany that are currently operating under the Centro, Ninetynine and Fourside brands, of which eight are open and seven are in the pipeline. It would take an open and committed pipeline of hotels in Germany to 68.
- The Company has robust liquidity backed by Revolving Credit Facility (RCF) of £950.0 million, and up to £600.0 million available under the Government's Covid Corporate Financing Facility (CCFF) scheme.
- Temporary pay cuts have been implemented by the board and dividend for the year was cancelled.
Share Price Performance Analysis of Whitbread Plc
(Source: EODHD/Others, chart created by Kalkine Group)
Shares of Whitbread Plc were trading at GBX 2,098.00 and were down by close to 4.50% against the previous closing price (as on 28 October 2020, before the market close at 8:10 AM GMT). WTB's 52-week High and Low were GBX 4,462.28 and GBX1,551.14, respectively. Whitbread Plc had a market capitalization of around £4.44 billion.
Business Outlook
The Company has been massively hit by Covid-19 pandemic, and it is recovering on a gradual level. Most of the hotels are now operational and showing better occupancy levels. Occupancy levels of Premier Inn UK increased from 51% in August to 58% in September. However, the performance will be impacted by local lockdowns imposed in October. The Company is focusing on expansion in Germany and enhancing its market share in the UK.
Will Plus500 Ltd continue its positive momentum in the last quarter?
Plus500 Ltd is the FTSE 250 listed Company. It is the leading technology platform for trading Contracts for Difference (CFDs) internationally, and it has over 1900 financial instruments encapsulating equities, exchange-traded funds, indices, and commodities.
Q3 FY20 trading update as reported on 27 October 2020
The Company's revenue increased by 96% year on year for Q3 FY20 ended on 30 September 2020 driven by unprecedented situations providing ample trading opportunities. The EBITDA increased by 91% from $70.1 million in Q3 FY19 to $134.2 million in Q3 FY20. The number of active customers increased by 78%, and the new customers were up by 90% in Q3 FY20. ARPU (Average Revenue per user) increased by 10% from $997 million in Q3 FY19 to $1093 million in Q3 FY20.
The Company has repurchased 928,609 shares in the quarter for a total value of $18.1 million following the announcement of a new share buyback programme.
Customer income in Q3 FY20 was at the second-highest quarterly level in the Plus500's history. The peak was in Q2 FY20. Customer income increased by 124% year on year to $240 million in Q3 FY20.
Client deposits remained robust at $634.6 million in Q3 FY20 and around $2.3 billion for the year to date supporting the Company's customer attraction and retention activities.
(Source: Company update)
Financial update
(Source: Company presentation)
Significant revenue growth was witnessed across all geographies in the first half of 2020 ended on 30 June 2020. ARPU has seen an outstanding performance in the first quarter of 2020.
(Source: Company presentation)
The Company has shown robust performance across all regions due to unprecedented levels of trading and the Company's tendency to manage high volumes.
Share Price Performance Analysis of Plus500 Ltd.
(Source: EODHD/Others, chart created by Kalkine Group)
Shares of Plus500 Ltd were trading at GBX 1,491.00 and were up by around 0.20% against the previous closing price (as on 28 October 2020, before the market close at 8:10 AM GMT). PLUS's 52-week High and Low were GBX 1,659.50 and GBX 650.80, respectively. Plus500 Ltd had a market capitalization of around £1.55 billion.
Business Outlook
The Company is carrying positive momentum after showing excellent performance for the first nine months of the year. The board has tremendous confidence towards the future prospects of the business considering the situation. Customer income has already witnessed an exceptional surge in H2 FY20 and already reached the levels of more than double as that of the prior year. The Group is expecting to deliver sustainable revenue growth and consistent levels of cash generation over the medium to long term.
