Intermoney : Better than expected results at all levels. Well ahead of 2022 and 2019 data. Capacity reaches 95.6% of that achieved in 2019, but higher tariffs allow improvement on pre-pandemic results: Revenues of €8,646m, +18% vs 3Q22 and +19% vs 3Q19. Above our estimates (€8,351m) and below consensus (€8,832m).
EBIT of €1,745m, +45% vs. 3Q22 and +22% vs. 3Q19, reaching its historical record in a 3Q. Above both our estimates (€1,388m) and the consensus (€1,578m).
Net debt stands at €8,000m (1.4x EBITDA) vs €11,100m in 3Q22. OUTLOOK 2023: Improved guidance
Expect to operate above 2019 levels in Q4 and by 2023 with capacity at around 97% of 2019 levels.
Around 75% of Q4 passenger revenues are already booked.
Expect fuel costs of around €7.6bn. Net debt to rise in Q4 due to seasonal effect.
Assessment: Record results, again well above all estimates. It demonstrates the strength of the sector and the ability to maintain demand despite the sharp rise in tariffs, as well as presenting a good outlook for 4Q23. We believe that at current prices it is an attractive opportunity. IAG trades at 2.9x EV/EBITDA and 4.5x PER. We maintain our Buy recommendation and P.O of €2.2.
