RAC - results out, in line

All,

Please refer to our unchanged analysis here.

H1 results confirm our investment thesis, but crucially: churn is not up, not flat, but its down (15.8% versus 16.6% in the corresponding 6 months prior). Revenues are marginally down YoY, but only in the pay as you go Membership services and Accident Management Services segments. Those should come back with traffic and accident numbers themselves. 

As a consequence of the drop in churn, overall membership numbers have increased by 500k from 12 months prior, and 100k from year end December 2019, even though acquisition costs (Cost of Sales) are down, which has ultimately raised EBITDA slightly. 

Yesterday RAC released their results H1 results to June 30th, the call is at 10am on Monday 7th September.

Happy to take any questions. Further update post call.

Tomas