Europe Earnings: Aviva, Deutsche Telekom, Ladbrokes, Rio Tinto

Nigel Thomas
08 Aug, 2013
New York City

Aviva revenues slid but pre-tax profit climbed 96%. Deutsche Telekom net profit for the second quarter surged 10% to

[R]3:20 PM Frankfurt – Aviva revenues slid but pre-tax-profits climbed 96%. Deutsche Telekom net profit for the second quarter surged 10% to €530 million. Ladbrokes profit-after-tax declined 58%. Rio Tinto net tumbled 71% and agreed to provide bridge funding to Turquoise Hill.[/R]

In London trading, FTSE 100 index jumped 0.6% or 39.45 to 6,551 and in Frankfurt the DAX index climbed 0.9% or 71.77 to 8,332.

In Paris, CAC 40 index gained 0.7% or 27.78 to 4,066.

Aviva Plc surged 7.5% to 398.70 pence after the UK based insurance group said revenues in the period ending in June slipped 3% to £11.45 billion. Pre-tax-profits for the period climbed 95.8% to £605 million.

Operating profits for the period jumped 5% to £1 billion and value of new business soared 17% to £401 million.

Deutsche Telekom AG soared 6.1% to €9.60 after the Germany based phone company said net revenue in the second quarter climbed 5.4% to €15.16 billion from €14.38 billion. Net profit for the quarter surged 10% to €530 million compared to €530 million.

Adjusted net profit slid 1.5% to €810 million from €822 million and EBITDA dropped 4.5% to €4.03 billion from €4.22 billion.

The U.S. based T-Mobile, mobile phone services provider added new 688,000 contract users.

For the year, adjusted EBITDA for the group is expected at €17.5 billion and free cash flow of about €4.5 billion.

Ladbrokes Plc dropped 3.1% to 201.30 pence after the UK based gambling company revenue in the first-half jumped 6.4% to £563 million from £529 million. Profit-after-tax declined 58.4% to £47.2 million compared to £113.6 million and diluted earnings per share dropped 5.1 pence from 12.3 pence.

The company said group operating profit plunged 19.8% to £85.7 million.

Rio Tinto Plc gained 1.4% to 2,994.50 after the UK based mining company reported revenue in the first-half ending in June dropped 3.2% to $24.5 billion from $25.3 billion a year earlier. Net income for the period tumbled 71% to $1.72 billion compared to $5.88 billion and diluted earnings per share declined 92.6 cents from 315.7 cents a year ago period.

Separately, the mining company today agreed to provide bridge funding facility of $600 million to Turquoise Hill Resources to develop the Oyu Tolgoi mine in Mongolia. Rio Tinto owns nearly 50.8% stake in the Turquoise Hills.