Barclays Net Swing to Loss, Orange SA Subscriber Growth Lifts Revenues

Sarla Buch
26 Apr, 2018
New York City

Barclays net swing to a loss and the bank led investor group agreed to buy

[R]4:00 PM Frankfurt – Barclays net swing to a loss and the bank led investor group agreed to buy £5.3 billion of mortgages from the U.K Treasury. Krones reaffirmed fiscal 2018. Orange SA revenue rose on higher customer count. Total SA profit declined but revenues surged.[/R]

In London trading, FTSE 100 index rose 17.73 or 0.2% to 7,398.12 and in Frankfurt the DAX index gained 20.51 or 0.2% to 12,444.30.

In Paris, CAC 40 index increased 27.92 or 0.5% to 5,440.98.

Barclays Plc slipped 209.90 pence after the U.K.-based investment bank and financial services provider reported revenues in the first-quarter ending in March plunged 8% from a year ago to £5.4 million.

Net in the quarter swung to a loss of £764 million from profit of £190 million in a year ago period and diluted loss per share swung to 4.2 pence from diluted earnings per share of 1.3 pence.

The bank booked £1.96 billion litigation and regulated charges, including £1.4 billion settlement with the U.S. Department of Justice.

Separately, today Barclays led group of investors agreed to acquire £5.3 billion or $7.4 billion of mortgages from the U.K. government Treasury.

Krones AG slipped 1.2% to €107.70 after Germany-based packaging and bottling machine maker said revenues in the first-quarter ending in March fell 0.9% from a year ago to €891.7 million.

Net profit in the quarter plunged 11.4% to €38.7 million from €43.7 million in a year ago period and diluted earnings per share slumped to €1.23 from €1.40.

New order inflow rose 13.4% to €992.4 million. However, the packaging machine maker said acquisitions had no significant impact on revenue or order intake.

Krones estimated fiscal 2018 revenue growth of 6% and operating margin of 7%.

Orange SA gained 1.2% to €14.96 after France-based telephony and mobile services provider reported revenues in the first-quarter ending in March rose 2% from a year ago to €10.1 billion and operating profit jumped 3.2% to €2.6 billion from the same period a year ago.

The mobile services provider said as of March 31, total number of customers in the quarter advanced 3.2% to 262.8 million; mobile service customers jumped 4.5% to 201.9 million and fixed broadband service customers increased 4% to 19.6 million.

Total SA increased 1.5% to €51.89 after France-based oil and gas producer reported revenues in the first-quarter ending in March soared 20.4% from a year ago to $49.6 billion.

Net profit in the quarter declined 7% to $2.6 billion from $2.8 billion in a year ago period and diluted earnings per share dropped to 99 cents from $1.13.

The oil and gas producer forecasted fiscal 2018 production growth of more than the 6% after start-ups and ramp-ups of new projects.

The energy group said it will continue to buy back up to $5 billion of its shares over the period of 2018 to 2020.