Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com -- Shares of InterContinental Hotels Group (LON:IHG) rose more than 7% on Thursday after the company reported an 8% earnings beat for the first half of fiscal 2025 and reaffirmed its full-year guidance, despite weaker-than-expected revenue and slowing growth in key markets.
Adjusted basic earnings per share came in at 242.5 cents, ahead of the consensus estimate of 224 cents and Jefferies’ forecast of 237.6 cents.
Adjusted EBIT, excluding System Fund impact, reached $604 million, beating consensus of $597 million and Jefferies’ estimate of $589 million.
Reported EBIT totaled $623 million, compared with a consensus forecast of $584 million.
Underlying revenue for the first half was $1.18 billion, missing both the consensus estimate of $1.19 billion and Jefferies’ $1.20 billion projection.
The company attributed the top-line miss in part to slower growth in revenue per available room, or RevPAR, which rose just 0.3% in the second quarter.
That was below the company-compiled consensus of 0.6%, Jefferies’ 0.5% estimate and Visible Alpha’s 0.1% forecast based on three estimates.
Regional RevPAR results were mixed. In the Americas, RevPAR declined 0.5% from the year-ago period, compared with 3.5% growth in the first quarter.
The EMEAA region posted a 3% increase, down from 5% in the prior quarter. Greater China saw a 3% decline, following a 3.5% drop in the first quarter.
Net unit growth was 4.6% in the second quarter, ahead of consensus expectations of 3.6% and Jefferies’ 3.7% estimate. The company declared an interim dividend of 58.6 cents per share, slightly above the 57.6 cents consensus.
Guidance for fiscal 2025 was unchanged. Adjusted interest is expected between $195 million and $205 million, in line with consensus of $195.8 million.
The company maintained its projected tax rate at approximately 27% and capital expenditures at $200 million to $250 million.
Share buybacks are expected to total $900 million for the year, with $423 million completed to date, compared with consensus expectations of $903.1 million.
For 2025 and 2026, consensus forecasts RevPAR growth of 1.7% and 2.4%, respectively, and net unit growth of 3.7% and 4.2%.
Medium-term targets remain intact, including high single-digit fee growth, 100% free cash flow conversion and adjusted EPS growth of 12% to 15%.