7.50am: Deliveroo UK lags international order growth
Deliveroo PLC (LSE:ROO)’s cross transaction value (GTV) was up 6% year on year at constant-currency rates in the first quarter, with per-order value increasing 4%.
International order growth outstripped the UK and Ireland market, which saw no growth in order volumes compared to 4% growth internationally.
However, the revenue take rate from those orders fell 2% internationally while adding 2% in the UK and Ireland.
Deliveroo has kicked off a £30 million share buyback programme thanks to positive free cash flow.
Founder and chief executive Will Shu said he was “pleased with the start we have made to this year, building on the strong progress in 2023”.
“We made particularly strong progress in International markets during the quarter, with notable improvements in France, UAE and Hong Kong, and continued strength in Italy.
He said the UK and Ireland consumer environment “remains stable but uncertain”.
Full-year guidance was maintained at GTV growth in the range of 5-9% and adjusted earnings in the range of £110-130 million.
7.27am: easyJet losses narrow
easyJet PLC reduced its winter losses by more than £50 million compared to last year due to a 9% year-on-year growth in both ticket yields and 10% growth in extras.
Headline losses before tax are expected to be between £340 and £360 million, per today’s interim trading update.
In the first half of the financial year, easyJet increased its capacity by approximately 8% to accommodate the growing demand at the budget airline, which recently reclaimed its spot as a FTSE 100 constituent.
Looking ahead, easyJet expects third-quarter revenues to be “slightly” up year on year, helped by the Easter peak falling into March.
For the fourth quarter, revenue per seat is anticipated to remain significantly ahead year-on-year, with about 30% of capacity already sold.
Chief executive Johan Lundgren said: “We have further enhanced our network with the launch of new bases in Alicante and Birmingham providing greater choice for consumers across Europe.
“We are well set up operationally for this summer season where we expect easyJet to be one of the fastest growing major airlines in Europe and take more customers on easyJet holidays than ever before.”
He noted that the onset of the conflict in the Middle East “resulted in a pause in flights to Israel and Jordan and a temporary slowdown in flight bookings for the wider industry”.
7.12am: Blue-chip index to add 35 points
The FTSE 100 is expected to open higher today after finishing up 28 points higher at 7,848 on Wednesday.
Despite trading in the red for a large chunk of the session, the blue-chip index recovered thanks to a strong showing for mining stocks including Anglo American, Fresnillo, Antofagasta and Rio Tinto.
A momentary respite in knife-edge tensions between Iran and Israel appears to be bolstering market sentiment for now.
Without any major announcements on the macroeconomic calendar this morning, attention turns to trading updates from the likes of wealth platform AJ Bell, homewares retailer Dunelm and Rentokil, plus an interim earnings report from easyJet.
Futures contracts have the FTSE 100 adding 35 points to 7,892.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
