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Sales: € 29.9 M (-93.6% vs. -93.5% expected and -93.0% expected by the market consensus);
EBITDA: € -64.7 M (€ 173.4 M in 1H'19 vs. € -72.0 M expected and € -53.0 M expected by the market consensus);
Net Profit: € -143.7 M (€ 54.6 M in 1H'19 vs. € -138.0 M expected and € -129.4 M expected by the market consensus);
1H'20 vs. 1H'19 Results
Sales: € 309.3 M (-62.3% vs. -62.3% expected and -62.0% expected by the market consensus);
EBITDA: € -33.8 M (€ 256.9 M in 1H'19 vs. € -41.1 M expected and € -21.6 M expected by the market consensus);
Net Profit: € -200.9 M (€ 39.9 M in 1H'19 vs. € -195.2 M expected and € -186.6 M expected by the market consensus).
Results came in slightly better than our EBITDA expectations but worse than those of the consensus, with € -64.7 M of negative recurring EBITDA in the 2Q’20 (vs. € -72 M BS(e) and € -52 M consensus). Despite the fact that costs have fallen -59% including rents (-70% excluding them), this cannot offset the sharp drop in revenues (-95% in 2Q’20), with recurring EBITDA for 2Q’20 coming in at a negative € -64.7 M (vs. € -41 M BS(e) and € -52 M consensus).
As for the outlook, the company’s comments suggest that it currently has 70% of capacity open, with an occupancy ratio of 40-45%. NHH has also stated that ~70% of demand is B2C and that B2B “will take longer to recoverâ€, given the macro backdrop and social distancing rules.
Net debt (ex leases) stands at € 435 M (vs. € 254 M as of 31 March and € 448 M BS(e) for the year-end), which has meant heavy cash burning on the quarter, affected by € 114 M of operating cash consumption on the quarter and € 34 M of CAPEX. The company has € 600 M of liquidity, with €~40 M of debt maturities through 2022. Including leases, net debt stands at € 2.61 Bn (vs. € 2.34 Bn BS(e) for the year-end).
The poor results and prospects lead us to reiterate our caution in the share price, which we believe should react negatively to this release. The share price has shed -50% vs. February’s highs (-20% vs. IBEX). SELL. Target Price: € 3.60/sh (upside 33.33%)
NH HOTELES: 2Q’20 RESULTS (ANÃLISIS BANCO SABADELL)
2Q'20 vs. 2Q'19 ResultsSales: € 29.9 M (-93.6% vs. -93.5% expected and -93.0% expected by the market consensus);
EBITDA: € -64.7 M (€ 173.4 M in 1H'19 vs. € -72.0 M expected and € -53.0 M expected by the market consensus);
Net Profit: € -143.7 M (€ 54.6 M in 1H'19 vs. € -138.0 M expected and € -129.4 M expected by the market consensus);
1H'20 vs. 1H'19 Results
Sales: € 309.3 M (-62.3% vs. -62.3% expected and -62.0% expected by the market consensus);
EBITDA: € -33.8 M (€ 256.9 M in 1H'19 vs. € -41.1 M expected and € -21.6 M expected by the market consensus);
Net Profit: € -200.9 M (€ 39.9 M in 1H'19 vs. € -195.2 M expected and € -186.6 M expected by the market consensus).
Results came in slightly better than our EBITDA expectations but worse than those of the consensus, with € -64.7 M of negative recurring EBITDA in the 2Q’20 (vs. € -72 M BS(e) and € -52 M consensus). Despite the fact that costs have fallen -59% including rents (-70% excluding them), this cannot offset the sharp drop in revenues (-95% in 2Q’20), with recurring EBITDA for 2Q’20 coming in at a negative € -64.7 M (vs. € -41 M BS(e) and € -52 M consensus).
As for the outlook, the company’s comments suggest that it currently has 70% of capacity open, with an occupancy ratio of 40-45%. NHH has also stated that ~70% of demand is B2C and that B2B “will take longer to recoverâ€, given the macro backdrop and social distancing rules.
Net debt (ex leases) stands at € 435 M (vs. € 254 M as of 31 March and € 448 M BS(e) for the year-end), which has meant heavy cash burning on the quarter, affected by € 114 M of operating cash consumption on the quarter and € 34 M of CAPEX. The company has € 600 M of liquidity, with €~40 M of debt maturities through 2022. Including leases, net debt stands at € 2.61 Bn (vs. € 2.34 Bn BS(e) for the year-end).
The poor results and prospects lead us to reiterate our caution in the share price, which we believe should react negatively to this release. The share price has shed -50% vs. February’s highs (-20% vs. IBEX). SELL. Target Price: € 3.60/sh (upside 33.33%)
Underlying
NH Hotel Group SA
NH Hotel is engaged in the operation and management of hotels throughout Spain, the Benelux countries, Germany, and South America.
Provider
Sabadell
Francisco Rodriguez
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