Earnings Report /
Turkey

Pegasus: 2Q22 review – Better-than-expected results

  • Pegasus posted €40.4mn net loss in 2Q22 which was 16% lower than our est. and 21% lower than cons.

  • The company’s EBITDA was €104mn in 2Q22 which was 23% higher than our est. and 21% higher than cons.

  • The company’s revenues increased by 226% y/y to €504mn in 2Q22 which was 11% above our estimate of €456mn.

Mustafa Bayram
Mustafa Bayram

Equity Research Analyst

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ATA Invest
18 August 2022
Published byATA Invest

Pegasus posted €40.4mn net loss in 2Q22 which was 16% lower than our estimate of €48mn net loss and 21% lower than consensus estimate of €51mn net loss. Higher than expected EBITDA was the reasons behind lower than expected net loss in 2Q22.

The company’s EBITDA was €104mn in 2Q22 which was 23% higher than our estimate of €85mn and 21% higher than consensus estimate of €86mn.

The company’s revenues increased by 226% y/y to €504mn in 2Q22 which was 11% above our estimate of €456mn and 10% above consensus of €458mn. The deviation from our estimates was due to 44% higher domestic RASK and 1% higher international RASK.

RASK increased by 94% y/y to €3.13, 16% higher than our estimate of €2.70 in 2Q22. Ancillary revenues per PAX increased by 37% y/y to €19.5 which was parallel to our estimate of €19.6. Accordingly, total revenue increased by 226% y/y to EUR504mn, 11% higher than our estimate of EUR456mn.

Total CASK increased by 20% y/y to €3.94 in 2Q22 which was 7% above our estimate of €3.67. On a segmental basis, fuel cost per ASK increased by 8% y/y to €1.87 which was 8% above our estimate of €1.74. Personnel cost per ASK decreased by 9% y/y to €0.38 which was 6% lower than our estimate of €0.41.

Total PAX increased by 78% y/y in 2Q22. On segmental basis, international PAX increased by 206% y/y to 3.8mn in 2Q22, whereas domestic PAX increased by 14% y/y to 2.8mn during the same period. Total ASK increased by 91% y/y in 2Q22 driven by 151% y/y increase in international ASK. Total load factor increased by 684bps y/y to 78.7% in 2Q22. On a segmental basis international load factor increased by 1.44ppt y/y to 78.8% while domestic load factor was up by 222pts y/y to 78.6%.

Net debt increased by 6% to €1,997mn q/q in 2Q22. 12M-Trailing Net Debt/EBITDA decreased to 5.22x in 2Q22 from 6.44x in 1Q22. In 2Q22, PGSUS took delivery of 6 Airbus A321NEO whereas 1 Boeing 737-800 and 1 Airbus320CEO are phased out.

The company will hold a teleconference at 17:00PM in 16 Aug Istanbul time. (14:00PM UK time)