Earnings Report /
Turkey

Pegasus: Better-than-expected results

  • Pegasus posted €278mn net income in 3Q22 which was 22% higher than our estimate and 21% higher than consensus estimate.

  • The company’s EBITDA was €469mn in 3Q22 which was 11% higher than our estimate and 9% higher than consensus

  • The company’s revenues increased by 122% y/y to €1.0bn in 3Q22 which was 6% above our estimate of €941mn

Mustafa Bayram
Mustafa Bayram

Equity Research Analyst

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ATA Invest
10 November 2022
Published byATA Invest
  • Pegasus posted €278mn net income in 3Q22 which was 22% higher than our estimate of €228mn net income and 21% higher than consensus estimate of €229mn net income. Higher than expected EBITDA was the reason behind higher than expected net income in 3Q22.

  •  The company’s EBITDA was €469mn in 3Q22 which was 11% higher than our estimate of €423mn and 9% higher than consensus estimate of €229mn.

  • The company’s revenues increased by 122% y/y to €1.0bn in 3Q22 which was 6% above our estimate of €941mn and 8% above consensus of €929mn. The deviation from our estimates was due to 7% higher domestic RASK and 4% higher international RASK

RASK increased by 83% y/y to €5.27, which was parallel to our estimate of €5.27 in 3Q22. Ancillary revenues per PAX increased by 58% y/y to €25.2 14% higher than our estimate of €22.0. Accordingly, total revenue increased by 122% y/y to EUR1.0bn, 6% higher than our estimate of EUR941mn.

 Total CASK increased by 27% y/y to €3.77 in 3Q22 which was 5% below our estimate of €3.97. On a segmental basis, fuel cost per ASK increased by 105% y/y to €1.95 which was 1% above our estimate of €1.93. Personnel cost per ASK increased by 26% y/y to €0.54 which was 40% higher than our estimate of €0.39.

 Total PAX increased by 30% y/y in 3Q22. On segmental basis, international PAX increased by 40% y/y to 5.3mn in 3Q22, whereas domestic PAX increased by 16% y/y to 3.2mn during the same period. Total ASK increased by 24% y/y in 3Q22 driven by 56% y/y increase in international ASK. Total load factor increased by 737bps y/y to 88.0% in 3Q22. On a segmental basis international load factor increased by 1.13ppt y/y to 85.7% while domestic load factor was up by 600bps y/y to 92.1%.

Net debt increased by 12% to €2,061mn q/q in 3Q22. 12M-Trailing Net Debt/EBITDA decreased to 3.03x in 3Q22 from 4.82x in 2Q22.

 The company will hold a teleconference at 17:00PM in 10 Nov Istanbul time. (14:00PM UK time)