SSP Group expects 7.8% revenue rise
Guidance for FY19 remains unchanged.
SSP Group expects its revenue to increase by approximately 7.8% on a constant currency basis, the company has announced.
This is comprised of like‐for‐like sales growth of approximately 1.8% and net contract gains of approximately 6%. At actual exchange rates, group revenues for the period are expected to increase by approximately 10% year‐on‐year.
“Overall, the trends seen in like‐for‐like sales growth in the third quarter have continued into the fourth quarter. In the UK, the air sector has been fairly resilient over the fourth quarter, while rail has remained softer, albeit benefitting from a lower level of disruption in the rail network. In Continental Europe, like‐for‐like sales continued to be held back by slower passenger growth and the impact of airport redevelopment in the Nordic countries and in Spain,” SSP said.
Net contract gains for the full year are expected to be above SSP’s previous expectations at around 5.5%, accompanied by pre‐opening costs. The group’s guidance for FY19 remains unchanged.
“Looking into 2020, many of these challenges will remain as well as ongoing economic uncertainty and the expectation of airline capacity cuts. That said, the diversity of the business and flexibility of the model leave us well placed to benefit from the significant structural growth opportunities in our markets and to create further value for shareholders,” the group said.
The group's results for the year ending 30 September 2019 are expected to be released on 20 November.
