Ryanair delivered a polished first-half performance which saw net profits rise 20 per cent in the period to €544m (477m) and passenger numbers grow 12 per cent at 44.7m.
That performance was even more impressive given that fuel costs, which account for 44 per cent of total operating costs, rose 37 per cent. Without these, rigorous cost controls left adjusted unit costs flat, despite such factors as a 2 per cent pay increase and higher charges at Dublin airport. Against that, the airline pushed through a 13 per cent increase in average fares, while ancillary sales rose 15 per cent to €487m.
Ryanair is also opening more operating bases, most recently in Manchester. Operations from Wroclaw in Poland and Baden Baden in Germany are expected to open in March next year, too, and negotiations continue with a view to opening a base in Warsaw. However, management remains cautious, pointing out that second half traffic numbers are expected to fall 4 per cent as the company grounds up to 80 aircraft as a result of higher fuel costs.
But, based on third-quarter bookings and limited visibility for the fourth quarter, Ryanair is raising full-year net profit estimates by 10 per cent to €440m, against €400.7m for 2011, which broker Davy estimates would imply EPS of around 30¢ per share.
| RYANAIR HOLDINGS (RYA) | ||||
|---|---|---|---|---|
| ORD PRICE: | €3.48 | MARKET VALUE: | €5.1bn | |
| TOUCH: | €3.47-3.48 | 12-MONTH HIGH: | €4.03 | LOW: €2.76 |
| DIVIDEND YIELD: | nil | PE RATIO: | 10 | |
| NET ASSET VALUE: | 217¢ | NET DEBT: | 12% | |
| Half-year to 30 Sep | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010 | 2.18 | 483 | 28.6 | nil |
| 2011 | 2.71 | 620 | 36.6 | nil |
| % change | +24 | +28 | +28 | - |
Ex-div:- Payment:- £1=€1.14 | ||||
