Wizz Air FQ3/21 roughly in-line, we remain Neutral
Wizz Air reported slightly worse-than-expected results for Q3/21, with revenues arriving at EUR 149.9mn (-76.5% YoY), falling short of our estimate of EUR 166mn. PBT, however, came in at EUR -116mn, ahead of our estimate of EUR 148mn predominantly due to net foreign exchange gain of around EUR 45mn. Compared to the consensus, revenues were in-line, but underlying net profit came above estimates.
Key take-away: Wizz is ready to ramp up capacity if needed to 80% within 2weeks according to the CEO. Current liquidity position of EUR 1.6bn in cash on hand enables Wizz to withstand 24-30 months in case of full grounding. Wizz Air cut its long-term capacity guidance. Though, they are set to receive 25 new jets in the next year, FY22/FY23 fleet guidance has been cut to 152/169 from 159/171 (Nov ’20 guidance), which is slightly negative, in our view.
Wizz Air Holding is a European airline. As of Mar 31 2017, Co. provided more than 500 routes from 28 bases, connecting 141 destinations across 42 countries. Co. has two reportable segments: the airline and the tour operator business units, marketed under the Wizz Air and Wizz Tours brand names, respectively. Wizz Air sells flight tickets and related services to external customers and, to an extent, to Wizz Tours. Wizz Tours sells travel packages to external customers covering the network of Wizz Air.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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