BGC PARTNERS - 1Q18 PGSUS BETTER
: Pegasus reported a net loss of TL113mn in 1Q18, better than market consensus of -TL144mn and our expectation of -TL133mn. Negative EBITDA of TL52mn is also better. The deviations from our expectations: i) lower than expected fuel and maintenance costs, ii) higher than expected one-off income from aircraft sale – TL22mn actual vs. our expectation of TL15mn and iii) a net tax income of TL21mn possibly due to investment incentives. Pegasus recorded a one-off income of TL95mn and TL216mn from aircraft sales in 4Q17 and 2017, respectively. We expect the earnings to have a positive impact on the stock performance. Our target price currently stands at TL39.35/share, pointing to a 12-month total return of 42%.Pegasus Hava Tasimaciligi is a low-cost airline group based in Turkey. Co. provides reasonably-priced transportation opportunities on point-to-point basis in short and medium range flight lines on its domestic and international network. Co. primarily provides transportation opportunities from its main hub in Istanbul Sabiha Gokcen International Airport, but also offers scheduled flights from other domestic hubs, primarily in Adana, Antalya and Izmir. Co.'s fleet is composed of 49 airplanes in total. Co.'s flight network consists of 76 locations (45 abroad and 31 domestic flight locations in 30 countries). Co. also provides cargo services and provides various training services.
BGC has been one of the major market players in Turkish OTC debt, FX and swaps markets since 1998.
We started offering corporate finance and investment banking services to our clients in 2013. We offer a complete range of financial services to help our clients achieve their goals. Our main areas of activity within investment banking are as follows:
- Mergers & Acquisitions
- Equity Capital Markets
- Debt Finance & Advisory
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