EDF Tumbles on Weak Forecast, Innogy Writes Down Asssets in Npower

Sarla Buch
13 Nov, 2017
New York City

EDF tumbled on weak fiscal 2018 outlook. Innogy booked

[R]4:00 PM Frankfurt – EDF tumbled on weak fiscal 2018 outlook. Innogy booked €480 million impairment on its U.K. retail unit Npower. Ladbrokes revenues rose on online trading. Patrizia benefited on Triuva acquisition. Telecom Italia profit declined on higher operating expenses.[/R]

In London trading, FTSE 100 index decreased 22.51 or 0.3% to 7,410.56 and in Frankfurt the DAX index dropped 164.57 or 1.3% to 13,963.58.

In Paris, CAC 40 index declined 76.85 or 1.4% to 5,303.87.

Electricite de France SA tumbled 12.7% to €10.25 after France-based electricity producer and distributor lowered fiscal 2018 forecast and blamed it on nuclear reactor operation issues.

EDF forecasted fiscal 2018 operating profit growth between €14.6 billion and €15.3 billion from the earlier estimate of at least €15.2 billion.

The electric power utility company said net investments excluding Linky, new developments and asset disposals may near €11 billion in 2018 and the disposal plan of €10 billion is now expected to be implemented by the end of 2020.

Innogy SE slipped 1.2% to €40.79 after Germany-based electricity and natural gas provider reported revenues in the nine-month ending in September dropped 2.1% from a year ago to €30.8 billion.

Net profit in the period tumbled 61.5% to €389 million from €1 billion in a year ago nine-month period and diluted earnings per share declined to €0.70 from €3.34.

Innogy said it accrued impairment charges of €480 million on the goodwill linked to Npower but the deal will not affect the assessment of the impairment.

The utility provider reaffirmed fiscal 2017 adjusted net income of more than €1.2 billion and operating profit of about €4.4 billion.

Ladbrokes Coral Group Plc declined 3.4% to 132.20 after the U.K.-based betting and gaming services provider said group revenue in the four-month ending in October rose 3% and digital net revenues surged 12% from a year ago period.

The betting and gaming services provider said brand in Australia and the Eurobet brand in Italy continue to post strong revenue growth from a year ago.

Patrizia Immobilien AG jumped 4.2% to €18.81 after Germany-based real estate investor said as of September 30, asset under management surged 50% to €30 billion after acquisition of domestic Triuva (formerly IVG Institutional Funds).

Patrizia said in the nine-month ending in September service fee revenues advanced 5.2% to €128.8 million and operating profit jumped 6.1% to €46.6 million and the assets managed in Europe increased €1.9 billion to €20.5 billion.

""Our strong investment expertise resulted significantly higher performance fees this year, which is why we were able to increase our guidance for the full year,"" said chief financial officer Karim Bohn.

Telecom Italia SpA slumped 2.6% to €0.694 after Italy-based telecom services provider reported revenues in the nine-month ending in September jumped 5.3% from a year ago to €14.7 billion.

Net profit in the period declined 30.9% to €1.03 billion from €1.5 billion in a year ago nine-month period.

The telecom services provider said operating profit in the period advanced 5.6% to €6.2 billion from €5.9 billion in a year ago nine-month period.

The mobile company estimated fiscal 2017 operating profit margin in low single digit and operating profit ratio expected to be below 2.7x in 2018.