Alitalia Receives Two Binding Bids, Willis Towers Reaffirms Outlook

Sarla Buch
02 Nov, 2018
New York City

Alitalia confirmed receiving two binding bids. International Consolidated Airlines lifted operating profit forecast for fiscal years between 2019 and 2023.Paddy Power Betfair reported strong third-quarter results. Willis Towers Watson reaffirmed fiscal forecast.

[R]4:00 PM Frankfurt – Alitalia confirmed receiving two binding bids. International Consolidated Airlines lifted operating profit forecast for fiscal years between 2019 and 2023.Paddy Power Betfair reported strong third-quarter results. Willis Towers Watson reaffirmed fiscal forecast.[/R]

In London trading, FTSE 100 index edged down 0.41 to 7,114.25 and in Frankfurt the DAX index jumped 107.10 or 0.9% to 11,575.64.

In Paris, CAC 40 index advanced 28.60 or 0.5% to 5,114.38.

Alitalia, the Italian state-appointed administrators confirmed that it had received two binding bids for the troubled airliner.

EasyJet had submitted its revised expression of interest on “existing strategy for Italy” and the U.S.-based Delta Air.

Delta reportedly intends to invest in the struggling Alitalia and directly compete with Qatar Airways who also controls about 49% stake in Italian airline Air Italy.

International Consolidated Airlines Group, S.A advanced 2.9% to 635.60 pence after the U.K.-based airline operator updated its long-term planning goals for 2019-2023.

IAG lifted fiscal operating profit forecast to about €7.2 billion per year from the earlier estimate of €6.5 billion, an average for fiscal 2018-2022.

However, the British Airways parent revised higher average net capital expense of about €2.6 billion from the earlier estimate for average of €2.1 billion per year for fiscal 2018-2022.

Paddy Power Betfair Plc gained 1.9% to 7,045 pence after the U.K.-based sports betting and gaming operator said revenues in the third-quarter ending in September jumped 10% from a year ago to £483 million but operating profit plunged 16% to £101 million.

The betting operator said online revenues soared 15% to £248 million and revenues in the U.S. surged 22% but retail revenues fell 4%. Revenues in the U.K. retail locations slid 1%; and revenues in Ireland-based shops declined 6% impacted by weaker margin.

Paddy Power Betfair lifted fiscal 2018 operating profit forecast to between £465 million and £480 million from the earlier estimate of £460 million to £480 million.

Willis Towers Watson Plc jumped 4.9% to 150.07 pence after the insurance brokerage and advisory services provider said revenues in the nine-month period ending in September jumped 6% from a year ago to $6.1 billion.

Net income in the period fell 1.9% to $317 million from $323 million in the same period a year ago and diluted earnings per share dropped to $2.39 from $2.36.

Willis Towers Watson reaffirmed fiscal 2018 revenue growth of about 3% to 4% and diluted earnings per share in the range of $10.12 to $10.32.