Jun 7, 2022
UK Photobooth Firm Gets a Boost as Passport Applications Surge
Bloomberg News
,![A woman uses a Photo-Me photo booth in Victoria Station, London, U.K., on Thursday, Nov. 29, 2007. Photo-Me International Plc, the U.K. operator of 25,000 photo booths, fell the most in 16 years in London trading after saying full-year results will be ``substantially'' below analysts' estimates. Photographer: FRANTZESCO KANGARIS/Bloomberg, Photographer: FRANTZESCO KANGARIS/Bloomberg A woman uses a Photo-Me photo booth in Victoria Station, London, U.K., on Thursday, Nov. 29, 2007. Photo-Me International Plc, the U.K. operator of 25,000 photo booths, fell the most in 16 years in London trading after saying full-year results will be ``substantially'' below analysts' estimates. Photographer: FRANTZESCO KANGARIS/Bloomberg](/polopoly_fs/1.1775468.1654603420!/fileimage/httpImage/image.jpg_gen/derivatives/landscape_620/a-woman-uses-a-photo-me-photo-booth-in-victoria-station-london-u-k-on-thursday-nov-29-2007-photo-me-international-plc-the-u-k-operator-of-25-000-photo-booths-fell-the-most-in-16-years-in-london-trading-after-saying-full-year-results-will-be-substantially-below-analysts-estimates-photographer-frantzesco-kangaris-bloomberg.jpg)
(Bloomberg) -- Booming demand for passport pictures amid a resumption of travel is giving a boost to self-service photobooth operator Photo-Me International Plc.
Shares in the Epsom, England-based company rose as much as 12% on Tuesday after it said trading had returned to pre-pandemic levels across all markets outside of Asia. Demand is “stronger than ever” as Covid-19 restrictions ease and consumers show more confidence in traveling and socializing, it said.
Photo-Me’s revenue rose 24% year-on-year in the six months to April 30, “with a consequential positive impact on profitability.” Growth was particularly strong in France and the UK, benefiting from pent-up demand for passports and other official documentation, according to a statement.
In April, the UK government said it was seeing “unprecedented demand” for passports after international restrictions delayed 5 million people from applying during the pandemic. The agency responsible for issuing British passports estimated 9.5 million applications would be made this year, and said it had processed more than 1 million new applications in March alone.
Photo-Me said it expects revenue for the year ending in October to rise at least 20% from the prior year should Covid and other social restrictions not be re-imposed on key markets. It forecast adjusted pretax profit in the range of £47 million to £50 million.
The shares traded up 10% at 77.8p as of 11:15 a.m. in London, extending their year-to-date gain to 23%. They are still more than 10% below pre-pandemic levels. Canaccord Genuity analyst James Wood increased his price target price to 140p from 130p following the update, he wrote in a note.
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