E Global Stocks Roundup


*Canada's BCE (a telco) reported earnings of 94 loony cents per share, 4¢ ahead of consensus estimates, and revenues up 2.5% to C$5.93 bn, also ahead of consensus but only by 2%. Moreover it again foecast EPS for the current year at C$3.48-3.58 on revenues of C$23.7-24.2 bn,

*German stocks are at relative lows and one of our holdings, ute EON.SE lost 1.9% yesterday after it was downrated to underweight from equal weight by JP Morgan and Siemens issued a profit warning . However EONGY gained back 0.4% today. Cf funds.

Funstocks part 2

Abhimanyu Sisodia from India resumes his coverage of Make My Trip Limited (MMYT), the on-line travel booking firm, his recent stock pick:

MMYT in Q2 (to June 30) increased revenues 6.7% in constant currencies to $141.74 mn mostly from air ticket sales, but remained unprofitable. Operating profit dropped $2.6 mn to $42.9 mn down 8% from last year, largely because of 7.3% slower growth in hotel and package tour sales, to $68.25 mn.

Given the turbulence in air travel here after Jet Airways crashed in April and grounded its 124 planes, (after Kingfisher did last year) the air booking growth heralds good health for MMYT.

Indian air travel is hard to price because while sales have grown in double digits each month over the prior year, making money is not as easy as margins are under 10% for air ticketing.

Hotels are higher margin, up to 25%. But MMYT has not been able to grow this sector and also is accused of spending too much on promotions in Q1, $76.3 mn. So last quarter they cut back (barely) to $72 mn in promotions to improve profitability, and also plan further chops. MMYT will be helped by its new 50% share sale to Ctrip which can share promotions. Meanwhile MMYT has $186 mn in cash on hand as of end June.


*British E-Therapeutics will use genetic data in diabetics to help Novo Nordisk of Denmark discover new drugs. The extended deal runs to June 2020.

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