Vodafone Group Plc Partnership with Ryanair Holdings Plc; Focus on International Consolidated Airlines Group SA

Vodafone and Ryanair Partnership

Vodafone has successfully entered a technology association with Ryanair holdings for its internet and network-based technology services such as the likes of internet ticket booking, as well as grievances redressal and a host of other services that Ryanair provides as a flight carrier to its passengers. The two organisations elaborated on 20th November that they had broadened a current association, accordingly Vodafone Business will help 300 Ryanair destinations and around 153 million passengers across over 40 nations. As per the agreement, Vodafone will help Europe’s biggest economy carrier to shorten the time it presently takes to connect another air terminal or site for use, which will result in a prompt and quicker turnaround of planes.

Ryanair, which has been said to be an unorthodox airline, hardly following the rules of airline industry’s way of doing business, making its own rules for the business operations, was looking for a telecom partner who use to follow the same rules of the business and was uniquely equipped and ready to work in similar fashion, where Vodafone was considered the best match.

As a part of the agreement between the two companies, the Ryanair Flight passengers can enjoy a host of Vodafone services. It will work in a close partnership with the airline to support the flight carrier in planning for the future use of a wide range of services and solutions.

 

Vodafone Group Plc

Vodafone Group Plc (VOD) is a London, the United Kingdom based broadcast communications organisation. The organisation runs its business from Europe, Asia Pacific, Africa and the Middle East. The group is among the world’s driving media correspondences organisations and has more than 500 million customers around the world. The association gives a wide extent of services to both individual and business customers worldwide in over 26 countries and fixed services in 17 of these. They are among the best five internet providers globally and probably the greatest manager of submarine connections. The group is situated in Newbury, the United Kingdom and was set up in 1984.

Vodafone Business is the telecommunication service provider’s technology enterprise segment that engages in the provision of cloud Information technology solutions as well as the connection of unlimited devices on its Internet of Things network for Small enterprises as well as to larger enterprises and bigger businesses across the world. This business of the company represented around 30 per cent of group’s total service revenue in the previous financial period, which ended on 31st March 2019.

VOD Share Price Performance

Daily Chart as at 20-November-19, before the market close (Source: Thomson Reuters)

On 20th November 2019, at 08:20 A.M GMT, While writing, Vodafone Group Plc’s share price has been reported to be trading at GBX 152.60, a decrease of 0.42 per cent or GBX 0.64 per share as compared to the previous day’s closing price, which was reported to be at GBX 153.24 per share. While writing, the Vodafone Group Plc share was reported to have been trading 24.86 per cent above the 52-week low share price, which was at GBX 122.22 per share, that the company’s shares reached on May 20, 2019. This was also 11.17 per cent below the 52-week high price at GBX 171.78 per share, which the company’s share achieved on November 28, 2018. Vodafone Group Plc’s reported market capitalisation (M-Cap) stands at a value of GBP 41.020 billion.

The beta of the Vodafone Group Plc’s share was reported to be at 1.18. This means the company’s share price movement is more volatile in its trend, as compared to the benchmark market index’s movement.

Ryanair Holdings Plc

Ryanair Holdings Plc (RYA) is a Dublin Based low-cost airline services company. It markets convenience solutions and travel protection through its Website. It gives boarding and lodging services as well. Ryanair provides its very own flights as well as passenger handling and ticketing facility at Dublin Airport. The company operates in various European as well as Western Asian countries apart from its major operations in the United Kingdom and Ireland.

RYA Share Price Performance

Daily Chart as at 20-November-19, before the market close (Source: Thomson Reuters)

On 20th November 2019, at 08:27 A.M GMT, While writing, Ryanair Holdings Plc’s share price has been reported to be trading at EURO 13.79, a decrease of 0.79 per cent or EURO 0.11 per share as compared to the previous day’s closing price, which was reported to be at 13.90 per share. While writing, the Ryanair Holdings Plc share was reported to be trading 64.36 per cent above the 52-week low share price, which was at EURO 8.39 per share, that the company’s shares reached on August 16, 2019. This was also 2.54 per cent below the 52-week high price at EURO 14.15 per share, which the company’s share achieved on November 08, 2019. Ryanair Holdings Plc’s reported market capitalisation (M-Cap) stands at a value of GBP 13.059 billion.

The beta of the Ryanair Holdings Plc’s share was reported to be at 1.17. This can be interpreted into the fact that the company’s share price movement is more volatile in its trend, as compared to the benchmark market index’s movement.

International Consolidated Airlines Group SA

International Consolidated Airlines Group SA (IAG) is a West Drayton, the United Kingdom based airline company that has ownership in airline carriers like British Airways, Iberia, Vueling and Aer Lingus. The company runs a varied network of Cargo as well as passenger aircraft which includes the likes of Airbus and Boeings of various sizes such as the Airbus A318 and A319 as well as the Boeing 787-800 airlines.

IAG Financial Performance and Latest News

On 31st October 2019, the company announced its results for the third quarter ended 30th September 2019. The company reported that the third-quarter operating profit was at €1,425 million before exceptional items. The company also highlighted that the Operating profit before exceptional items for the period of nine months was at €2,520 million.

 Nine months to September 30
 Statutory Pro forma Statutory
Highlights € million2019 2018Higher /20192018
(lower)
Passenger revenue17,185 16,3265.30%17,18516,326
Total revenue19,399 18,3465.70%19,39918,346
Operating profit before exceptional items2,520 2,770-9.00%2,5202,575
Exceptional items 584-100.00%584
Operating profit after exceptional items2,520 3,354-24.90%2,5203,159
       
Available seat kilometres (ASK million)2,55,749 2,44,3444.70%  
Passenger revenue per ASK (€ cents)6.72 6.680.60%  
Non-fuel costs per ASK (€ cents)4.81 4.761.00%  
Alternative performance measures2019 2018Higher /
(lower)
Profit after tax before exceptional items (€ million)1,814 1,930-6.00%
Adjusted earnings per share (€ cents)88.7 90.0-1.40%
Net debt (€ million)6,179 6,430-3.90%
Net debt to EBITDA1.2 1.20.0x

Source: Company Website

IAG has reportedly made an offer to purchase Air Europa for $1.1 billion (€1 billion) in its plan to expand its share in the rewarding Europe-Latin America sector. Air Europa is a part of Spanish travel industry group Globalia, which includes a tour service provider, travel offices and lodging service providers. It works across 69 terminuses, including European and long stretch courses to Latin America, the United States, Caribbean and North Africa.

IAG Share Price Performance

Daily Chart as at 20-November-19, before the market close (Source: Thomson Reuters)

On 20th November 2019, at 08:34 A.M GMT, while writing, International Consolidated Airlines Group SA’s share price has been reported to be trading at GBX 548.4, a decrease of 0.98 per cent or GBX 5.40 per share as compared to the previous day’s closing price, which was reported to be at GBX 553.80 per share. While writing, the International Consolidated Airlines Group SA share was reported to have been trading 33.27 per cent above the 52-week low share price, which was at GBX 411.50 per share, that the company’s shares reached on August 16, 2019. This was also 18.02 per cent below the 52-week high price at GBX 668.98 per share, which the company’s share achieved on November 27, 2018. International Consolidated Airlines Group SA’s reported market capitalisation (M-Cap) stands at a value of GBP 10.989 billion.

The beta of the International Consolidated Airlines Group SA’s share was reported to be at 0.66. This means that the company’s share price movement is less volatile in its trend, as compared to the benchmark market index’s movement.