Trainline revenue tops expectations, Mondi sales volumes rise
London open
The FTSE 100 is expected to open 14 points higher on Friday, having closed up 0.63% on Thursday at 8,172.15.
Stocks to watch
Online rail ticket selling platform Trainline on Friday reported better-than-expected revenue along with a sharp jump in annual sales and profits, driven by competition for passengers in Spain and Italy along with a greater takeup of digital tickets in the UK. Revenue was up 21% to £397m for the 12 months to February 29, while ticket sales rose 22% to £5.3bn and adjusted core profit hit £122m, an increase of 42%.
Mondi reported increased sales volumes across paper grades in its first quarter on Friday, supported by solid downstream converting operations, despite lower average selling prices. The FTSE 100 packaging firm said underlying EBITDA stood at €214m, including a one-off loss of €32m due to the devaluation of the Egyptian pound. It said corrugated packaging saw higher containerboard sales, while flexible packaging experienced growth in sales volume offset by lower prices.
Hotels giant InterContinental Hotels Group reported a substantial easing in revenue per available room (RevPAR) growth in the first quarter as weakness in the Americas and a big slowdown in China limited progress. Global RevPAR was up just 2.6% year-on-year in the three months to 31 March, down from 7.6% in the fourth quarter of 2023. RevPAR growth in the Americas turned negative, falling to -0.3% from 1.5% in the preceding period, while Greater China growth came in at 2.5%, down from 72% in the fourth quarter which reflected a soft comparative from the previous year when travel restrictions were still in place. EMEAA growth however picked up to 8.9% from 7.0%.
Newspaper round-up
Paramount Global’s share price soared on Thursday following a report that Sony Pictures and Apollo Global Management had made a $26bn offer for the troubled media giant. According to the Wall Street Journal, the offer was made on Wednesday by Sony’s chief executive, Tony Vinciquerra, and Aaron Sobel, a partner at Apollo. Paramount’s shares rose 12% on the news. – Guardian
Fossil fuel companies will be allowed to explore for oil and gas under offshore wind-power sites for the first time, the government will announce on Friday, in a move that campaigners said is further proof that ministers are abandoning the climate agenda. The North Sea Transition Authority (NSTA), which regulates North Sea oil and gas production, will confirm that it is granting licences to about 30 companies to look for hydrocarbons on sites earmarked for future offshore windfarms. – Guardian
Apple has suffered its biggest drop in iPhone sales for more than three years as Chinese shoppers turn away from the company and embrace domestic rivals such as Huawei. The Californian tech giant said on Thursday night that revenues from the iPhone fell by 10.5pc in the first three months of the year. Total sales fell by 4pc to $90.8bn (£72.4bn), while profits were down 2pc to $23.6bn. Shares rose in after-hours trading however, with the sales decline not as severe as feared. Sales from China fell by 8pc. – Telegraph
The King’s bank is pulling nearly £2bn out of the London stock market in the latest hammer blow to the beleaguered exchange. Coutts, which banks the Royal family and operates an ATM in Buckingham Palace, has announced plans to move away from UK stocks and instead invest its money abroad. The changes will see the amount it invests in UK equities drop from 33pc of assets to just 2pc, meaning Coutts will sell £1.96bn of British stocks and plough the money into other regions. – Telegraph
Hong Kong’s financial regulator has launched criminal proceedings against Simon Sadler, the owner of Blackpool Football Club, and the hedge fund he founded, Segantii Capital Management, over allegations of insider trading. The Securities and Futures Commission also said it had started proceedings against former Segantii trader Daniel LaRocca. Sadler and LaRocca were both released on a cash bail of HK$1 million (£102,000) and HK$500,000 respectively. Segantii pledged to “defend itself vigorously” against the charges. – The Times
US close
US stocks rose strongly on Thursday with tech names leading the surge as investors continued to absorb comments from the Federal Reserve the previous session, who reassured that interest rates are unlikely to rise despite stickier-than-expected inflation.
The Dow and S&P 500 both finished 0.9% higher while the tech-heavy Nasdaq jumped 1.5%, as markets started to turn their attention to Friday's non-farm payrolls report.
US job creation for April is pencilled in at 243,000, according to consensus estimates, down from 303,000 in March, while investors will keep a close eye on the hourly earnings detail given how higher salaries put upwards pressure on inflation.
The Fed's decision on Wednesday to leave interest rates unchanged was widely expected.
However, Fed chair Jerome Powell quashed recent concerns that resilient economic data could in fact lead to tighter monetary policy.