|Bid||4,332.00 x 0|
|Ask||4,334.00 x 0|
|Day's Range||4,204.00 - 4,358.00|
|52 Week Range||3,927.00 - 5,162.00|
|Beta (3Y Monthly)||0.65|
|PE Ratio (TTM)||2.06|
|Earnings Date||Oct 22, 2019|
|Forward Dividend & Yield||1.00 (2.35%)|
|1y Target Est||4,741.39|
RBC assumed a £2 online cap would cut revenue from UK slots takings by 40 per cent. William Hill’s earnings would be cut 46 per cent under this worst-case scenario, with GVC and Flutter losing 17 per cent and 12 per cent of earnings respectively, it estimated.
The hotel industry, like the UK economy generally, has suffered from the uncertainty surrounding Britain's split from the European Union, with firms reining in business trips. "Shorter-term trading conditions in the UK regional market have been difficult, particularly in the business segment where we have a higher proportion of our revenue," Whitbread Chief Executive Officer Alison Brittain said on Tuesday. Whitbread's Brittain said it was difficult to predict business confidence and its impact on demand for domestic travel if the uncertainty was to drag on, or if Brexit was to end without a negotiated withdrawal process.
The U.K.’s biggest hotel owner has seen costs rise and its stock price slide in a difficult U.K. climate. Its long-term plans look promising, but it’s not a stock that’s going to see quick gains.
The UK’s Competition and Markets Authority back in February managed to get a handful of brands owned by Expedia Group and Booking Holdings to change how they displayed information to consumers searching for accommodation online. Essentially it was concerned about hate-selling through techniques such as hidden charges, and ordered them to sort it out. The […]
The Sunday Telegraph reported in May that Elliott had become increasingly frustrated with Whitbread's strategy of owning Premier Inn hotels outright and wanted the company to offload chunks of its property portfolio. According to the report, the activist investor believes Whitbread's strategy is depressing the company's share price and is leaving it open to a cut-price hostile takeover.
(Bloomberg Opinion) -- Shareholders in Merlin Entertainments Plc are poised to exit the theme park.The company that operates Legoland resorts and Madame Tussauds wax museum has agreed to a 4.8 billion pound ($6.1 billion) joint bid from Blackstone Group LP, the family behind the Lego empire, and Canadian pension fund CPPIB.The offer continues the trend for private equity groups to buy back the businesses that they once owned, and are languishing in public markets. The descendants of Lego founder Ole Kirk Christiansen sold a share of their stake in Merlin to Blackstone in 2005, and the company was listed in London in 2013. The family has held a stake throughout, and it now stands at almost 30%. Companies that are unloved in the stock market make good targets for a second bite of the cherry by the private equity firms that were previous owners. They know the businesses well. Add in the fact that buyout funds have more money than they know what to do with, and you have deals for U.K. satellite company Inmarsat Plc and Swedish building materials group Ahlsell AB.The 455 pence per share offer for Merlin represents a 15% premium to the closing share price on Thursday, and looks fair. It is around the level the stock was were trading at before a lackluster trading update in Oct. 2017, when demand for the company’s attractions was dented by nervousness about terrorism and the first signs of the U.K. consumer slowdown. The shares have traded lower ever since. They rose 14% on Friday, to just below the offer price.As for the buyers, it’s hard to see what they can do differently. Having come from private equity ownership, the company is already pretty efficiently run. There isn’t scope for big cost cuts. Current management will continue.What will be change is how patient investors will be. Blackstone is making the investment from its long-term fund, which typically has a time horizon of at least ten to 15 years. In private hands there’s scope for owners to allow ample time for investments to pay off, a point made by activist investor ValueAct Capital, which has a 9.3% stake. Merlin has spent about 1 billion pounds over the past three years developing its attractions, but the potential benefit from this has not been reflected in earnings, or the share price.The new owners are betting that the investments the company is currently making will ultimately generate returns. At that point, the Merlin can achieve an appropriate evaluation in public markets.There is one wild card: a combination with Whitbread Plc, which has been mooted by some analysts. The company is focused on hotels now that it has shed its Costa Coffee chain. It wants to expand internationally, and Merlin’s global reach would help. Merlin, meanwhile, is building accommodation in its attractions. Whitbread would bring an experienced operator, plus potential synergies.The large number of hotels that the group would own outside of Merlin’s attractions is a significant stumbling block, and makes a deal a stretch.But with the potential for Whitbread to come under pressure to bolster returns from its hotel division, Merlin’s new owners should consider the combination as another route to create value from the buyout.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: Jennifer Ryan at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
According to the report http://bit.ly/2VEGpuh on Saturday, the activist investor believes Whitbread's strategy is "depressing" the company's share price and is leaving it open to a cut-price hostile takeover. Citing city sources, the newspaper said Elliott wanted Whitbread to sell 10 to 15 percent of its hotel portfolio and "continue to be open minded about the rest".
Elliott Advisors has become increasingly frustrated with Whitbread Plc's strategy of owning Premier Inn hotels outright and wants the company to offload chunks of its 5.8 billion pound ($7.64 billion) property portfolio, the Sunday Telegraph reported. According to the report http://bit.ly/2VEGpuh on Saturday, the activist investor believes Whitbread's strategy is "depressing" the company's share price and is leaving it open to a cut-price hostile takeover. Citing city sources, the newspaper said Elliott wanted Whitbread to sell 10 to 15 percent of its hotel portfolio and "continue to be open minded about the rest".
The sale of the group’s cafe division to the soft drink giant left Whitbread focused on its budget hotel unit, and here the recent performance has been disappointing. Uncertainty around Britain’s divorce from the European Union led to weaker demand at Premier Inn in the three months to February, and this worsened in March and April.
Whitbread, which has its origins as a brewer, has focused on its hotel business after Coca-Cola Co bought Costa for 3.9 billion pounds in a cash deal completed in early January. Whitbread said it expects weak room revenue growth in Britain for the financial year to next February as demand dips.
Premier Inn owner Whitbread spooked the City on Tuesday as chief executive Alison Brittain delivered a stark warning on Brexit turmoil sapping business confidence and hotel bookings. The firm is hugely exposed to the hotels market after completing a £3.9 billion sale of its Costa Coffee arm to Coca-Cola in January but says the political gloom has chilled business. Although Premier Inn’s UK sales rose 3.5% in the year to February 28, comparable sales slumped 0.6%.
Premier Inn owner Whitbread Plc said on Tuesday it expects weak room revenue growth in the UK for the ongoing year due to weak market demand. The former Costa owner posted a 1.2 percent rise in annual ...