International Consolidated Airlines Group PLC to report massive slump in revenue
2020 was a year to forget for IAG; the focus in Friday’s results will be on summer bookings
A busier than usual Friday is in prospect with at least four FTSE 100 companies scheduled to report.
2020 was a terrible year for British Airways owner International Consolidated Airlines Group PLC (LON:IAG) and this is reflected in expectations for full-year revenue, which are around the €1.3bn mark, down from €6.2bn in 2020.
Small wonder then that analysts at UBS expect the focus will be on summer bookings, plus the airline’s restructuring plans.
Rightmove PLC (LON:RMV), the property listings web site, has also seen its business hit by lockdowns and although the government has done its best to ensure that an Englishman’s home remains his surrogate pension plan, this has been more beneficial to housebuilders than estate agents and their fellow travellers.
The company has been decidedly quiet since its half-year report back in August when it reported revenue was down by just over one-third year-on-year.
The company has suspended dividend payments and its share buyback programme but has pledged to consider restoring dividend payments once the impact of the coronavirus (COVID-19) on the business becomes clearer; the recent “lockdown” roadmap announced by the government was heavily caveated so the picture may not yet be clear enough to sanction a return to divis.
Also reporting will be insurance company RSA Insurance Group PLC (LON:RSA), in what will probably be its swan song before the company is carved up by Intact Financial and Danish insurer Tryg, and WPP Group PLC (LON:WPP), the advertising and marketing conglomerate’s whose results are often considered as a good temperature reading of the state of the world economy.
READ RSA Insurance to be broken in two after recommending £7.2bn offer
https://www.proactiveinvestors.co.uk/companies/news/934252/rsa-insurance-to-be-broken-in-two-after-recommending-72bn-offer-934252.html
WPP has previously said it does not expect to return the levels of growth seen before the pandemic until 2022 but from that point onwards earnings should pick up again.
October and November’s net like-for-like revenues were down by 6.7% year-on-year while the first 11 months of 2020 saw an 8.4% decline.
On the economic front, the cupboard is fairly bare, with just the Lloyd’s business barometer for February, which is not likely to get anyone hot under the collar.
Friday, February 26
Finals: Avation PLC (LON:AVAP), FBD Holdings PLC (LON:FBH), Glenveagh Properties PLC (LON:GLV), Jupiter Fund Management PLC (LON:JUP), Law Debenture Corporation PLC (LON:LWDB), RSA Insurance Group PLC (LON:RSA), VR Education Holdings PLC (LON:VRE), WPP Group PLC (LON:WPP)
Trading statement: Asa International Group PLC (LON:ASAI)
Economic indicators: Lloyd’s business barometer
Read More: International Consolidated Airlines Group PLC to report massive slump in revenue