Latest news with #EUR400
Yahoo
21-05-2025
- Business
- Yahoo
Vodafone Group PLC (VOD) (FY25) Earnings Call Highlights: Strategic Moves and Financial Growth
Adjusted EBITDAaL: Delivered FY25 group guidance; FY26 guidance between EUR11 billion and EUR11.3 billion. Adjusted Free Cash Flow: FY25 guidance met; FY26 expected growth between EUR2.6 billion and EUR2.8 billion. UK Merger Impact: Pro forma FY26 impact of EUR400 million EBITDAaL contribution and EUR200 million adjusted free cash flow drag. EBITDA Growth in UK: 8% growth in FY25. Shareholder Returns: EUR2 billion returned through buybacks and EUR1.8 billion in dividends over the last year. Cost and CapEx Synergies: Expected GBP700 million annual synergies from UK merger by the fifth year. Warning! GuruFocus has detected 9 Warning Signs with VOD. Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Vodafone Group PLC (NASDAQ:VOD) has successfully reshaped its portfolio by selling operations in Spain and Italy and merging with Three UK, which has strengthened its market position. The company has returned EUR2 billion to shareholders through buybacks and EUR1.8 billion in dividends, with a new EUR2 billion buyback program starting. Vodafone Group PLC (NASDAQ:VOD) has achieved significant improvements in customer experience, particularly in the UK and Germany, leading to record low levels of churn. The company is well-positioned for medium-term growth in adjusted free cash flow, with two-thirds of this growth coming from expanding assets. Vodafone Group PLC (NASDAQ:VOD) has strong growth opportunities in Africa and Turkey, with significant potential beyond core connectivity, contributing to its overall financial performance. Vodafone Group PLC (NASDAQ:VOD) faces challenges in the German market, including a declining broadband base and increased competition in mobile, impacting its financial performance. The company anticipates continued ARPU pressure in the German mobile market due to aggressive pricing by competitors. The UK merger with Three is expected to result in a EUR200 million adjusted free cash flow drag due to front-loaded investments and integration costs. Vodafone Group PLC (NASDAQ:VOD) has experienced delays in its fiber build-out in Germany, impacting its ability to compete effectively in the broadband market. The company faces challenges in the UK B2B market, with headwinds from managed services and ARPU pressure in mobile, affecting its growth prospects. Q: Can you provide more details on the guidance and the outlook for Germany? A: Margherita Della Valle, Group Chief Executive & Executive Director, explained that the guidance for Europe implies a mid-single-digit decline for Germany. The focus is on improving customer experience, with significant improvements in Net Promoter Scores (NPS) in Germany. Pricing remains a challenge, and the guidance assumes the current pricing environment will persist, leading to continued ARPU pressure in mobile. Luka Mucic, Chief Financial Officer, added that the German EBITDAaL recovery will see significant improvement as the year progresses, aided by the stabilization of the broadband base and the ramp-up of the 1&1 migration. Q: What can customers expect from the UK merger, particularly regarding network improvements? A: Margherita Della Valle highlighted that the merger will lead to immediate benefits in coverage and capacity as Vodafone and Three UK combine their networks. The EUR11 billion network plan will further enhance infrastructure, positioning Vodafone as a leader in customer satisfaction. The merger will also bring significant synergies, including EUR700 million in cost and CapEx synergies, and will strengthen Vodafone's position in the UK market. Q: How is the B2B segment performing, and what are the expectations for FY26? A: Luka Mucic reported strong growth in the B2B segment, with a 5.1% growth in Q4. The UK market faced challenges due to lower price increases and the loss of some managed services contracts. However, the digital services business is expected to drive growth, with continued investment in product portfolio expansion. B2B contributes close to 30% of Vodafone's service revenue, with a focus on cash flow contribution due to its asset-light nature. Q: What is driving the growth in Africa and Turkey, and how does it impact Vodafone's overall strategy? A: Margherita Della Valle emphasized the disciplined approach in high-inflation environments, focusing on revenue growth ahead of inflation and cost control. The markets in Africa and Turkey offer significant growth potential, with opportunities in digital services and financial services. Vodafone's execution in these regions has been strong, contributing to sustainable midterm adjusted free cash flow growth. Q: Can you elaborate on the share buyback program and its impact on shareholder value? A: Margherita Della Valle noted that the adjusted free cash flow per share is expected to grow by 17% year-on-year. Luka Mucic explained that the buyback program is seen as a value-accretive investment, with the current program expected to continue through the fiscal year. The focus remains on sustainable dividend growth and capital returns to shareholders. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data
Yahoo
05-03-2025
- Business
- Yahoo
Melia Hotels International SA (SMIZF) (FY 2024) Earnings Call Highlights: Strong Profit Growth ...
System-wide RevPAR: Increased by 10.7%, driven mainly by price increases. Consolidated Revenues: EUR2,013 million, a year-on-year increase of 4.4%. Management Fees: Increased by 12.9%. Operating Expenses: Increased by 3%, with personal expenses up by 4.7%. EBITDA (excluding capital gains): EUR533.6 million, surpassing the target of EUR525 million. Yearly Margins: 26.5%, a 129 basis points improvement. Net Financial Results: Worsened by EUR3.5 million, but financial costs reduced by EUR10.3 million. Consolidated Net Profit: Increased by 24.5% to EUR162 million. Net Profit of Parent Company: EUR140.6 million, an increase of 19.4%. Earnings Per Share: EUR0.64. Net Financial Debt Reduction: Reduced by approximately EUR400 million. Asset Valuation: Total value increased by 13.8% to EUR5,285 million. Hotel Openings: 19 hotels opened, adding 3,000 rooms. New Projects Signed: 34 new hotels, adding more than 5,000 rooms to the pipeline. Warning! GuruFocus has detected 6 Warning Sign with SMIZF. Release Date: February 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Melia Hotels International SA (SMIZF) achieved a system-wide RevPAR increase of 10.7% in 2024, driven primarily by price increases. The company surpassed its EBITDA target, reaching EUR533.6 million, exceeding the goal of EUR525 million. Net financial debt was reduced by approximately EUR400 million, returning to pre-pandemic leverage ratios. The company opened 19 hotels in 2024, adding 3,000 rooms, and signed 34 new hotels, adding over 5,000 rooms to the pipeline. Melia Hotels International SA (SMIZF) plans to continue expanding in luxury segments and key vacation destinations, with a target to sign at least 25 new hotels and open 20 properties in 2025. Operations in Cuba faced challenges due to power outages and adverse meteorological events, affecting demand. The company's net financial results worsened by EUR3.5 million due to an impairment related to hotel operation rights in Cuba. Political uncertainties in France and Germany caused instability, resulting in single-digit RevPAR growth in these regions. The US Presidential election caused some price adjustments in the Americas to maintain market share. China's market remains mainly domestic-driven with a slower recovery in international influx, impacting performance. Q: With the debt coming down nicely, are there any plans to reduce it further, possibly through raising capital? Also, any thoughts on reducing the family's shareholding? Lastly, you mentioned opening 20 hotels in 2025; does this include any delayed projects from 2024? A: Angel Luis Rodriguez Mendizabal, CFO: We have no plans for a capital increase as we are comfortable with our current debt level, aiming to maintain a leverage ratio between 2 and 2.5 times. Gabriel Juan Escarrer Jaume, CEO: The family has no intention of reducing its stake; in fact, I have been buying shares. Andre Philippe Gerondeau, COO: Delays in openings are typical, but we expect a 4% net unit growth in 2025, which includes any carryover from 2024. Q: Could you provide more details on performance expectations for the Caribbean, particularly Mexico, and any cash flow or asset rotation plans for this year? A: Andre Philippe Gerondeau, COO: Despite a slight slowdown due to U.S. political events, demand in Mexico remains strong, especially in the MICE segment. The Dominican Republic is performing well with increased demand. Angel Luis Rodriguez Mendizabal, CFO: We expect stronger cash flow generation in 2025 compared to 2024, with no major asset disposals planned in the short term. Juan Ignacio Pardo Garcia, Chief Real Estate and Sustainability Officer: We are focusing on repositioning strategic assets in the Caribbean, like Paradisus Cancun. Q: Regarding RevPAR evolution, are you being conservative with your mid-single digit growth guidance for 2025? Also, what is the CapEx guidance for the year? A: Andre Philippe Gerondeau, COO: We see market stabilization in prices and volume, and our guidance reflects realistic expectations. Spain had a strong year, and we anticipate growth at twice the inflation rate. Angel Luis Rodriguez Mendizabal, CFO: Maintenance, risk, and IT CapEx is expected to be around EUR60 million, with significant investment in Paradisus Cancun. Q: You plan to open 20 new hotels in 2025. Is this a net or gross number, and what level of OpEx inflation do you expect? A: Andre Philippe Gerondeau, COO: We plan to open 20 properties, resulting in a net unit growth of about 4,000 rooms. Stephane Baos, Head of Investor Relations: We expect OpEx inflation to be between 3% to 4% for 2025. Q: Are you planning to close any hotels or rooms this year, particularly with the development of Paradisus Cancun? A: Andre Philippe Gerondeau, COO: Yes, Paradisus Cancun will be closed at the end of the winter season for refurbishment, affecting about 700 units. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Arabian Business
25-02-2025
- Business
- Arabian Business
Investcorp to invest in Italian alternative payments enabler Epipoli
Bahrain's Investcorp Capital will invest in Italy's Epipoli, a fast-growing enabler of international alternative payments. The Abu Dhabi Securities Exchange-listed company announced that it had signed a definitive agreement to acquire Epipoli from investment firm Bregal Milestone and Gaetano Giannetto, the founder and CEO who will continue to lead the company. Investcorp acquires Epipoli stake Terms of the transaction were not disclosed, but in a filing with the ADX, the alternative investment company said it would have deployed $280 million in investments since the beginning of the financial year. Epipoli was founded by Giannetto in 2000 and has developed the largest Customer Relationship Management (CRM) and loyalty program in Italy with over six million customers. It established its gift card business in 2006 and launched Italy's first pre-paid Mastercard in 2012. Today, Epipoli works with millions of customers, thousands of distributors and hundreds of retailers, with unique expertise in the retailing markets and a turnover of approximately EUR400 million. Epipoli operates at the intersection of payments, employee rewards and customer engagement services. Investcorp 's investment is expected to help the company further accelerate its growth plans as it continues to build out its payments and services platform and expand its offering to more customers in Italy and internationally. Tim Mattar, Chief Executive Officer of Investcorp Capital, commented: 'Leveraging Investcorp's strong experience of investing in technology-enabled enterprises and helping businesses internationalise, Investcorp will support Epipoli in further expanding its reach across Europe. 'Our investment demonstrates Investcorp Capital's commitment to identifying and targeting growth opportunities to deliver the best possible returns for shareholders.' Epipoli has experienced a transformative growth path following Bregal Milestone's initial investment in 2019. It has consolidated its leadership position while increasing gross revenues by 4x and completing three add-on acquisitions across Italy and Switzerland.
Yahoo
12-02-2025
- Business
- Yahoo
TUI AG (TUIFF) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amid Market Challenges
Revenue: Up 13% driven by holiday experiences, market, and airlines. Underlying EBIT: Increased by 51%, marking the 10th consecutive quarter of growth. Hotel and Resorts Performance: Up EUR60 million; Bed Nights up 3%, Occupancy up 2%, Daily Rate up 5%. Cruise Segment: Up EUR14 million; Capacity up 10%, Rates up 4%. TUI Musement: Increased by EUR9 million with experiences growth of 12%. Market and Airlines: Down by EUR30 million, primarily due to investments in the Nordic market. Net Debt: Remained flat compared to last year. Interest Expense: Improved versus prior year, with a focus on refinancing. Booking Trends: Winter bookings up 2%, Summer ASP up 4%. Guidance: Reaffirmed full-year underlying EBIT increase of 7% to 10%. Warning! GuruFocus has detected 4 Warning Signs with TUIFF. Release Date: February 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TUI AG (TUIFF) reported its 10th consecutive quarter of underlying EBIT growth, supported by strong performance in hotel, cruise, and TUI Musement segments. Revenues increased by 13%, driven by holiday experiences and market and airlines, with a positive outlook for the upcoming summer season. The company achieved a BB rating from Fitch, reflecting improved financial discipline and structure, returning to pre-pandemic levels. TUI AG (TUIFF) is benefiting from a global customer base, with increased demand from regions such as the Caribbean and Spain, contributing to higher occupancy and rates. The company is making significant strides in sustainability, with new ships ready for green methanol and LNG, aligning with its long-term sustainability goals. Market and airlines segment reported a decline of EUR30 million, primarily due to investments in the Nordic and Northern European markets. There is a concern about volume slowdown in Germany and negative bookings in the UK, which could impact future growth. Despite a strong start, the company faces challenges in maintaining cruise occupancy rates, which are down compared to pre-pandemic levels. The company is cautious about adding fixed capacity, relying on dynamic packaging for growth, which may not yield immediate profitability. TUI AG (TUIFF) faces competitive pressure in the UK market, with competitors increasing their capacity significantly, which could affect market share. Q: Are you concerned about the volume slowdown in Germany compared to the figures you gave in December? And why are the hotel ADR figures accelerating in Q2 and the second half of the year compared to Q1? A: We are benefiting from our global portfolio and increased global travel, especially in regions like the Caribbean and Spain, where demand is strong from outside Europe. Regarding Germany, we are focusing on margin protection and managing volume strategically. We do not expect the market to weaken significantly. Q: How should we think about any benefit to the EUR400 million P&L interest expense over the next year or two, particularly in the context of the RCF refinancing? A: The RCF is linked to our rating category and is up for renewal before summer. The biggest cost is the commitment fee, as it is not heavily drawn. We expect more savings from the rating improvement, particularly in the lease and asset financing portfolio. Q: Can you help quantify the FDI benefits you've seen so far and how you're thinking about that in your guidance for the year? A: We have seen some impact from FDI last year, and there might be a small positive impact this year. However, it's difficult to quantify precisely as the market risk was known last year. We expect a modest growth in holiday experiences for the rest of the year. Q: With Ryanair included, are you taking other capacity out to match that? And do you make any profit on a Ryanair trip? A: The risk capacity remains flat, and growth is expected from dynamic content like Ryanair. We don't disclose profit numbers on partners, but any incremental business is positive for profitability. The strong distribution network helps secure occupancies and load factors. Q: Are you concerned about negative bookings in the UK, and what gives you confidence in improving this? A: We feel comfortable with the current booking status. Bookings seem to be slightly later, but the market is in good condition, and what we see for summer supports our guidance. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
