J.P. Morgan Ryanair FQ2:15 Results - 60 Second Update - ALERT RYA FQ2 (fiscal year ends March) Net Income missed JPMe and company consensus by a touch on the back of in-line Revenue. Management lifted F15 Net Income guidance, which implies an average of 13% upside to JPMe and 10% upside to consensus, reflective of stronger volume outlook, and better cost control than we previously expected. • Net Income of E598m was 2% below JPMe and 1% below consensus, on the back of €2.04bn Revenue (+7% yoy), which was in line with JPMe and 4% ahead of consensus. Both passenger revenue and ancillary revenue were as we expected. Fuel cost in FQ2 was 2% less than JPMe while 7% higher than consensus. • F15 Net Income guidance is lifted by an average of 17% to E750m- 770m from €650m. The updated guidance implies upside of 12-15% to current JPMe of €671mn, and 8-11% to consensus E694mn. Upside from guidance is driven by stronger H2 traffic outlook and better unit cost — Ryanair management now sees 16% yoy H2 traffic growth vs. JPMe 9% yoy; F15 unit cost is expected to be -4% yoy (vs. JPMe -0.5%), or flat ex-fuel (JPMe +3.5%). • Valuation: RYA currently trades on 2015e EV/EBITDAR of 7.5x and PIE of 13.6x, vs Eli multiples of 6.6x and 11.3x, and 5.1x/8.1x for legacy peers average. • Credit perspective: Ryanair's net cash position improved from E158m at FYE14 to E618m as of 30-Sep, with lease-adjusted leverage now 0.1x (flat from Q1). Ryanair's board has approved the payment of a €520m special dividend (announced with FQ1 results), to be paid in Feb'15. Capex over H114 was E293m (flat YoY), primarily relating to aircraft pre-delivery payments, spare engine purchases and two aircraft deliveries. The group's order for 200 additional Boeing Max aircraft (100 firm + 100 options, to be delivered from 2019) is subject to EGM approval in November, as part of the group's policy to maintain a young (average <5yrs) and cost-efficient fleet. We are Overweight Ryanair c