Telefonica to Sell Telecom Italia Stake, Redrow Profit Surges

Nigel Thomas
02 Sep, 2014
New York City

Telefonica plans to sell its stake in Telecom Italia and acquire broad band unit in Brazil controlled by France bases Vivendi. Johnson Service net swung to profit after revenue jumped 6%. Redrow profit surged 93% to

[R]4:00 PM Frankfurt – Telefonica plans to sell its stake in Telecom Italia and acquire broad band unit in Brazil controlled by France bases Vivendi. Johnson Service net swung to profit after revenue jumped 6%. Redrow profit surged 93% to £103 million.[/R]

In London trading, FTSE 100 index edged down 0.02% or 1.18 to 6,824.13 and in Frankfurt the DAX index gained 0.4% or 41.30 to 9,520.33.

In Paris, CAC 40 index rose 0.2% or 7.45 to 4,387.18.

DCD Media Plc surged 13.7% to 270 pence after the U.K.-based television content producer agreed to sell its television production subsidiary Matchlight Limited to the unit management.

Johnson Service Group Plc climbed 3.3% to 62.25 pence after the U.K.-based catering and corporate hospitality services provider said revenue in the first-half ending in June jumped 5.7% to £101.6 million from £96.1 million a year ago period.

Net in the period swung to profit from a year ago to £4.8 million compared to a loss of £5.1 million and diluted earnings per share swung to 1.7 pence from a loss per share of 1.9 pence.

Playtech Plc slipped 0.9% to 711.50 pence after the U.K.-based gaming and sports betting software provider agreed to acquire Aristocrat Lotteries unit from Australia-based Aristocrat Leisure Limited for €10.5 million to install at its Sweden and Italy-based units.

Redrow Plc dropped 2.7% to 273.40 pence after the U.K.-based homebuilding company reported group revenue in the year ending in June soared 43% to £864.5 million from £604.8 million a year ago period.

Profit in the year surged 93.4% from a year ago to £102.7 million compared to £53.1 million and diluted earnings per share double to 28.2 pence from 14.6 pence.

The company said net debt in the year increased to £172.6 million from £91 million a year earlier due to ongoing investment in land and work in progress.

Telefonica SA fell 0.6% to €11.99 after the Spain-based communication, media and entertainment service provider said it plans to sell its 14.8% stake in Telecom Italia SpA after a deal to acquire the Paris-based Vivendi''s Brazilian broadband unit GVT S.A.