Free Trial

Accor {AC FP Equity +4%} (Snr; NR, BBB-, BBB- S) reports in line results

CONSUMER CYCLICALS

* Revenue slight miss, EBTIDA slight beat (on margin beats) at €1b, RevPAR looks like a miss - driven by both rates & occupancy. FCF was €596m (c€533), net debt at €2.1b up from €1.7b last yr, leverage (against EBITDA/FFO) are lower over the yr. €1b revolving credit facility was undrawn, liquidity at €2.3b.

* Dividend will be €1.18/share (~€300m) (c€1.1) unch on the 50% FCF-payout ratio. Medium-term guidance (2023-27) was re-affirmed at EBITDA growth of 9-12%, FCF conversion of >55 (59% this yr) & shareholder payouts of €3b (to '27) including €400m buyback in '24.

* Strong performance for the FY & dividend payouts are in line with what Fitch was expecting (its on stable). We don't see value in the Snr (non-perp) lines here - they have continued compressing against IG names post its uplift in 2H last yr & look fairly priced. Hasn't stopped cash mids moving 5-8 tighter this morning, earnings call is ongoing.

Equity takes; {NSN S990GUDWLU68 <GO>}

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.