International Consolidat... Share Discussion Threads

[neilrich] 05/3/2018 15:22

Very good monthly stats released this afternoon...

Group traffic in February, measured in Revenue Passenger Kilometres, increased by 5.8 per cent versus February 2017; Group capacity measured in Available Seat Kilometres rose by 3.5 per cent

Also, Deutsche Bank reiterates BUY rating at the same time increasing the target price from 730p to 770p.

[chiefbrody] 26/2/2018 17:04

600p again. Seem to be saying that every other month!Practically a traders dream. Like most other stocks these days.

[sum493] 24/2/2018 00:20

debt is debt at the end of the day!!

[bookbroker] 23/2/2018 17:09

Who is the idiot worrying about the debt, the actual debt is in fact like an intangible asset in terms of the aircraft the company operates, and the terms are spread over many years, they effectively own those aircraft, so it is not like a non-performing debt!

[cashandcard] 23/2/2018 15:45

Looks like its heading for a test of 580p. May get some more if it holds.


Cash

[chiefbrody] 23/2/2018 12:24

Billion not a lot these days lol.All that cash/debt nets off (save for a billion). Leave you with a company valued at 12 Billion, yet making 2 Billion a year profit.Cheap.

[cashandcard] 23/2/2018 12:02

Its spread over years. Its not gonna get called in tomorrow.


Cash

[ricer93] 23/2/2018 12:01

why wouldn't i worry about that? It wipes out the entire cash EUR6,676 and leaves a net billion debt?

[cashandcard] 23/2/2018 11:54

ricer93,


Most of that 7759 net debt is made of capital aircraft lease costs. Its spread over years, I would worry too much about that.


Cash

[ricer93] 23/2/2018 10:31

I see what you mean - I was only taking the dividend into account

what about:

Cash of EUR6,676 million at December 31, 2017 was up EUR248 million on 2016 year end

BUT

Adjusted net debt at 7,759 million

[neilrich] 23/2/2018 10:12

EPS for 2017 was 102.8 euro cents, this equates to 90.5 pence, therefore the price/earnings ratio is 6.58(596p/90.5).

Dividend is 27 euro cents, this equates to 23.7 pence, therefore the yield is 3.97%.

Dividend cover 4.

Absolute bargain in my opinion.

[ricer93] 23/2/2018 10:02

'We're pleased to confirm that the Board is proposing a final dividend of 14.5 euro cents per share. This brings the full year dividend to 27.0 euro cents per share, subject to shareholder approval at our AGM in June. With the dividend and share buyback, we returned more than €1 billion to our shareholders last year

27 euro cents yearly dividend per share when company is trading at 596p?

27 euro cents is just 23.78p

meaning Price/Earnings ratio is 25??

then we have market valuation 12.24B

Cash of EUR6,676 million at December 31, 2017 was up EUR248 million on 2016 year end

BUT

Adjusted net debt at 7,759 million

could someone please explain?

[cashandcard] 23/2/2018 09:43

chiefbrody,


I can understand 750p, not sure about 1000p, looks steep given where the divi is. They need to grow the divi a little more for the market to comfortably afford them a higher valuation. Granted, I do see it as a far more sustainable divi option than some other highy priced airlines.

A bit of slaughter house here today. It will comeback.


Cash

[chiefbrody] 23/2/2018 09:14

Agreed cash.Back over 600p soon. Still think it should be closer to 1000p than 600p though.Happy to hold and pick up my 6% div (now 3.75%) though.Fact i think i'll be holding these very long term. One day value will out.

[cashandcard] 23/2/2018 09:13

bookbroker,


Yes, that's a fair point, but will have been factored into costings. The shorthaul LCC competition is going to take out more, we saw Monarch and Airberlin disappear lastyear. I can see more unless they can widen their exposure or develop other parts of their offering like package holidays etc.


Cash

[cashandcard] 23/2/2018 08:56

bookbroker,


Paying FA for the seat allows folk to stretch themselves a little more on destinations. Bums on seats is not where the money is made, its the ancillary sales/aftermarket onboard to the captive audience, bit like a flying shop or restaurant if you will.


Cash

[cashandcard] 23/2/2018 08:47

chiefbrody,


Flybe looks like it could be in play for a take out by a group inc. Stobart Air, going by recent announcements by both parties. But that's short haul and will not really make much of a difference to IAG.

I think this will be back up later on, its one of the most sustainable divi's given the cash position. Also, cutthroat competition is ruthless in Europe, IAG's has excellent exposure beyond that.



Cash

[chiefbrody] 23/2/2018 08:44

Lol at the share price reaction again this morning.

[chiefbrody] 23/2/2018 08:42

Well for one thing, there sure needs to be some more consolidation in the sector.Having said that, in parts of the world, growth in air travel is staggering (Asia) so that'll help keep many airlines propped up.Hotels are still fairly priced here and there bookbroker. Just not in Western Europe!

[broadwood] 23/2/2018 08:40

International Consolidated Airlines Group reported operating profits of €3,015m for the year to the end of December, up 18.9% from a year ago, benefitting from reduced fuel costs for most of the year.

The group also announced its intention to carry out a €500m share buyback programme in 2018.

Fourth quarter operating profit was €585m before exceptional items, down from €620m.

Operating profits were weighed by a charge of €288m during the year related to restructuring costs. More than half of cost, €180m, was related to a collective redundancy programme, as part of Iberia's transformation plan Plan de Futuro II.

Revenue for the year rose by 1.8% to €22,972m and passenger unit revenue was up 1.5% at constant currency.

Fuel unit costs for the year before exceptional items was down 7.8%, down 9.1% at constant currency.

Non-fuel unit costs for the year before exceptional items was down 1.3% and up 2.7% at constant currency.

Profit after tax rose 12.7% to €2,243m and diluted earnings per share rose by 14%.

The full year dividend was up 14.9% 27 cents.

Overall capacity increased 6.3% and the fastest growing regions were the Middle East, Europe and Asia, with passenger load factors down on the Middle East.

Overall passenger load factor improved 0.9 points to 81.4%, having improved for more than five consecutive years. Europe saw the highest load factor, up 1.5 points, followed by North America, although the latter's load factor was broadly flat against last year.

At current fuel prices and exchange rates, IAG expects its operating profit for 2018 to show an increase year-on-year. Both passenger unit revenue and non-fuel unit costs are expected to improve at constant currency.

Chief executive Willie Walsh said: 'All our airlines performed extremely well with their best-ever individual financial results, strong operational performances and commitment to customer service. The turnaround in Vueling, following the challenges of 2016, has been particularly outstanding.'

'In quarter 4 we reported an operating profit of €585 million, down from €620 million last year. Our strong performance continued with passenger unit revenue up 2.4 per cent at constant currency. The operating profit was impacted significantly by changes in the employee bonus provision in the quarter compared to the previous year.'

'We're pleased to confirm that the Board is proposing a final dividend of 14.5 euro cents per share. This brings the full year dividend to 27.0 euro cents per share, subject to shareholder approval at our AGM in June. With the dividend and share buyback, we returned more than €1 billion to our shareholders last year.'

'Our confidence in IAG's future remains undaunted and today we're announcing our intention to undertake a share buyback of €500 million during 2018.'