Below are the key morning press headlines, featuring the The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
Ryanair Holdings (RYA) raked in £7.7million a day in extra charges from its passengers over the summer holidays. A surge in the number of people paying extra to reserve a seat or bring a second bag on board helped the budget airline generate £1.4billion from add-ons in just six months. In results posted yesterday, the Irish-based carrier revealed the amount it generated from ‘ancillary sales’ soared by 28% in the six months to the end of September. Ryanair flew 86million passengers in that time, 11% more than during the same period last year. In a statement to the stock market, the airline said ‘more guests chose priority boarding and preferred seat services’, but critics say passengers are effectively being forced to pay extra following a crackdown on cabin baggage.
Shares in UK gambling firms lost nearly £1.2bn in value after the Guardian revealed that MPs had recommended stringent curbs on online casino games worth more than £2bn a year to the industry.MPs from the cross-party group on gambling-related harm, who joined the successful campaign to cut stakes on fixed-odds betting terminals (FOBTs) to £2, recommended the same limit be applied to web-based slot machine games. The MPs, who include the former Conservative party leader Iain Duncan Smith, are understood to be hopeful they can convince policymakers in No 10 to include tighter controls on gambling firms in the party’s general election manifesto. Markets responded to the MPs’ recommendation by staging a mass sell-off of gambling stocks on Monday. The online-only casino firm 888 Holdings (888) was hardest hit, losing nearly 14% of its value in a day, a slump that cut its market value by £91m. The largest fall in sterling terms was suffered by Ladbrokes’ owner, GVC Holdings (GVC) , whose 10.5% fall equates to nearly £547m in lost value, overshadowing the Isle of Man-based firm’s announcement of a new chairman. William Hill (WMH) registered a £230m decline, Paddy Power Betfair’s owner, Flutter Entertainment (FLTR) , £217.5m, and GameSys, which makes online slot machine games, £78m.
International Consolidated Airlines Group SA (CDI) (IAG) has agreed to buy Spanish rival Air Europa for €1billion (£860million), in another round of consolidation in the market. IAG, which also owns two Spanish carriers – Iberia and Vueling – said it is looking to turn Madrid airport in a ‘true rival’ to the four major European airports of Amsterdam, Frankfurt, Heathrow and Paris Charles De Gaulle. The group said Air Europa – which has 66 planes and flies to Europe, Latin America, the United States, the Caribbean and North Africa – will retain its name for the time being. IAG boss Willie Walsh said the acquisition would generate additional financial value for shareholders as the group would become more cost efficient and a significant player in the Europe-to-Latin America and Caribbean markets.
Mothercare (MTC) has brought in restructuring experts from accountancy giant KPMG, raising concerns for the future of its 79 stores and 2,500 staff. The retailer, which fell to a £36.3m loss and shut 55 stores last year under a controversial company voluntary arrangement (CVA), has been trying to sell its UK arm. The company is now considering closing more stores or asking landlords for rent cuts, but a sale is believed to be preferred, The Sunday Times reported. Mothercare boss Mark Newton-Jones wants its UK stores to become franchises, to mirror its profitable international business – effectively turning the retailer into a branding and product supplier.
Damage caused by three storms that hit the United States, the Caribbean and Japan during the past three months has forced Hiscox Limited (DI) (HSX) to set aside $165 million to cover probable insurance claims. The insurer said yesterday that it was braced for heavy losses as a result of natural catastrophes during the third quarter, highlighting Hurricane Dorian and the typhoons Faxai and Hagibis. The storms, in which 162 people died, caused estimated losses of $33 billion as a result of damage to residential and commercial property and disruption to businesses. Hiscox said that the losses were markedly above its budget for the second half of the year. This, along with a forecast that fees and commissions would be below expectations, took the shine off an otherwise upbeat set of numbers covering the first nine months of the year.
Shares in fracking companies dived yesterday after the government banned the oil and gas extraction technique. Ministers imposed a moratorium on fracking at the weekend because of the “unacceptable” risk of earthquakes, saying that it was impossible to predict the scale or frequency of tremors. The ban came after a series of shocks near Blackpool, where Cuadrilla, a fracking company, had been exploring for gas. The most recent earthquake in September measured 2.9 on the Richter scale, forcing it to halt production. The ban sent shares in AJ Lucas, an Australian energy group that owns 48% of Cuadrilla, down by 23% yesterday. Shares in UK-listed fracking companies also fell sharply, with IGas Energy (IGAS) closing down 4p at 32¼p, and Egdon Resources (EDR) tumbling ¾p to 3½p.
Draper Esprit (GROW) risks a backlash from shareholders after chief executive Simon Cook moved from the top post to become chief investment officer without a cut to his salary. Mr Cook, who founded the publicly-listed venture capital firm together with chief operating officer Stuart Chapman, said the move will allow him to spend more leading the firm’s investment team. He said: “For me personally, I’m an entrepreneur at heart. Investing is what I love.” Although he will no longer be heading up the business, it is understood there will be no change to his salary, which last year stood at £348,000. The second highest paid director was Mr Chapman, at £289,000.