Europe Earnings: Accor, Generali, Informa, Royal Mail, Telford, Veolia, WPP

Nigel Thomas
27 Nov, 2013
New York City

Accor dropped after a stake sale and a decision to split the company. Generali plans to reduce

[R]3:40 PM Frankfurt – Accor dropped after a stake sale and a decision to split the company. Generali plans to reduce €150 million of costs. Informa agreed to acquire China-based Baiwen Exhibition. Royal Mail profit soared. Telford Homes profit grew. United Utilities Pretax profit soared. Veolia fell after EDF stake sells.[/R]

In London trading, FTSE 100 index rose 0.1% or 5.45 to 6,642 and in Frankfurt the DAX index gained 0.4% or 32.80 to 9,323.

In Paris, CAC 40 index increased 0.4% or 17.08 to 4,295.

Accor SA dropped 6.4% to €31.42 after the France-based hotel operator agreed to sell its 19.4% stake in Australian hotel owner Tourism Asset Holdings Ltd to Abu Dhabi''s sovereign fund for $66 million as part of the strategy to become a hotel brand operator.

The hotelier said it will split into two business models, one operates the group’s world-wide 14 brands of hotels and the other will look after ownership and investment in hotels.

Sebastien Bazin, the group chief executive officer of French hotels group confirmed the group''s EBIT for the year is expected between €510 million and €530 million.

Assicurazioni Generali SpA gained 1.9% to €16.91 after the Italy-based insurer reconfirmed to reduce the extra €150 million of costs by 2015 to minimize the debt.

Informa Plc increased 1.4% to 559.50 pence after the U.K-based educational services provider agree to acquire stake in Baiwen Exhibition Co Ltd, the owner and organizer of the annual China Beauty Expo.

Royal Mail Plc climbed 5.6% to 562.75 pence after the U.K-based postal service provider said revenue in the first-half ending on September 29 increased 2% £4.52 billion from £4.36 billion a year ago.

Profit for the period soared to £1.22 billion compared to £379 million and diluted earnings per share jumped to 122 pence from 37.7 pence a year earlier.

Operating profit after transformation costs for the period was £283 million and the company benefited from a one-off VAT credit and profit before taxation of £233 million. Net debt of £723 million was £183 million lower than the March 31.

Solvay SA dropped 2.7% to €110.70 after the Belgium-based chemical maker expects its operating earnings to reach between €2.3 and €2.5 billion by 2016.

Telford Homes Plc dropped 2% to 367.45 pence after the U.K.-based property developer said revenue in the first-half ending in September slid to £73.7 million from £78.3 million a year earlier.

Profit for the period grew £5.9 million compared to £4.9 million and earnings per share rose to 10.8 pence from 9.9 pence per share a year ago.

United Utilities Group Plc rose 1% to 663.50 pence after the U.K.-based waste and water group reported revenue in the first-half ending in September jumped 3.7% to £853.3 million from £822.9 million a year ago.

Pretax profit for the period surged 141% to £335 million compared to £139 million and diluted earnings per share jumped to 122 pence from 37.7 pence a year earlier.

Veolia Environnement SA slipped 1.9% to €11.95 after the state-controlled power company Electricite de France sold its entire 4.01% stake in the company at a price of €11.90 per share in the company for €262 million.

WPP Plc rose 1.4% to 1,366 pence after the U.K.-based marketing company agreed to buy a majority stake in Johannesburg-based Cerebra Communications.