Uptick in travel to boosts SSP Group’s full-year profits for 2023

The group expects to reach a full-year revenue of £3b in 2023.

The SSP Group expects to reach the upper end of its revenue outlook due to strong market performance and the continued recovery of air travel.

The SSP said that the revenue for the last 16 weeks of the year (from 12 June to 30 September) is expected to be at 116% of 2019 levels, on a constant currency basis.

This represents an underlying improvement in trading since the group’s statement on 21 June (covering the 10-week period from 1 April to 11 June), where trading was at 112% of 2019 levels on a constant currency basis.

SSP’s revenue performance was driven by the continued recovery in passenger numbers, particularly in the air sector, as well as its stronger customer offer and digital proposition. In addition, revenues have benefitted from price increases and further net contract gains.

The group expects revenues to be at 115% of 2019 levels in Europe, driven by strong summer air travel volume and despite the impact of protests and travel disruption in France. The group also saw passenger improvements across Asia pacific, particularly in India and Egypt.

In the UK and Ireland, sales are expected to strengthen to 100%, reflecting both the improving performance and the higher mix of the air channel, despite the rail sector continuing to be impacted by ongoing industrial action.

Meanwhile, North America, which now accounts for approximately a quarter of group revenue, continues to be a key driver of its performance. Over the last 16 weeks of the financial year, revenues are expected to strengthen to 127% of 2019 levels

The group expects FY2023 revenue and EBITDA to be at the upper end of the planning assumptions, representing full year revenue of c.£3b and EBITDA of £280m.

“We are enjoying a good finish to the year, and there is real momentum across the business as we enter FY2024. Our focus on higher growth markets such as North America and Asia Pacific, as well as our ongoing efforts to enhance our capabilities and increase efficiencies, is delivering strong results. Looking ahead, we continue to see significant opportunities for SSP to drive growth and returns,” Patrick Coveney, CEO of SSP Group, said.

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