TUI and Entain in Thursday’s spotlight as investors eye rebound from Covid chaos


Package holiday giant TUI AG (LSE:TUI) (LSE:TUI) reports a trading update on Thursday, with bookings and cash generation likely to be the key items on the agenda as the firm eyes a rebound from the chaos of the pandemic.

With travel restrictions (mostly) relaxing across Europe, investors will be hoping more bookings have begun to flow in as holidaymakers begin to make plans for trips abroad again, as well as whether the firm’s debt and spending levels are anything to be concerned about.

UBS is estimating revenues of EUR592mln for TUI’s third quarter, as well as an increase in operating expenditure to reflect costs associated with the ramp-up of the summer programme.

The bank has also predicted that passenger traffic will improve between July and September and expected TUI to report capacity at around 60% of 2019 levels, lower than previous guidance of 75%, as ongoing restrictions hampered growth.

Entain tipped to impress

Entain PLC (LSE:ENT) (LSE:ENT) – which runs bookies Ladbrokes, Coral and Italy’s Eurobet as well as online specialist brands like bwin, Gala Bingo, Party Poker and BetMGM – reports on Thursday, having recently hit an all-time high.

This followed reports that bid interest from US partner MGM Resorts is re-emerging after the casino giant had an $11bn (GBP7.9bn) offer rejected earlier this year.

We had a trading update from Entain last month, where it upped its full-year earnings expectations to a range of GBP850-900mln after reporting faster gaming revenue growth in the second quarter.

As the easing of coronavirus restrictions allowed its betting shops to reopen, first-half net gaming revenue (NGR) grew 11%, with retail NGR galloping 359% higher in the second quarter compared to a 99% decline in the first, while online NGR climbed 22% in the second quarter versus 33% in the first.

The US joint venture, BetMGM continued to grow market share, now at 24% across states where it is active and generated a first-half NGR of approximately US$350mln.

Thursday 12 August

Trading updates: TUI AG

Interims: Arix Bioscience PLC (LSE:ARIX, FRA:3HY) (LSE:ARIX, FRA:3HY), Arrow Global (AIM:ARW) (AIM:ARW) Group PLC, Aviva PLC (LSE:AV.), Coca-Cola HBC AG, Entain PLC, Silence Therapeutics PLC, Just Group PLC (LSE:JUST) (LSE:JUST),

FTSE 100 ex-dividends to knock 30.71 points off the index: Next plc, Barclays plc, Rio Tinto PLC (LSE:RIO) (LSE:RIO), Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.A) A plc, Royal Dutch Shell B plc, AstraZeneca PLC (LSE:AZN) (LSE:AZN), SEGRO plc, NatWest Group PLC (LSE:NWG) (LSE:NWG), Pearson PLC (LSE:PSON) (LSE:PSON), BP plc, Standard Chartered PLC (LSE:STAN) (LSE:STAN), Fresnillo PLC (LSE:FRES) (LSE:FRES)

Economic data: UK RICS Housing Market Survey, UK Industrial Production, UK GDP, UK Manufacturing Production, US Initial Jobless Claims, US CPI


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