Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
ITV
Full year results are in from ITV LON:ITV this morning, with numbers ahead of expectations, with second half revenue growth in the studios business, online and advertising all helping bolster performance. The company cautions however that the impact of travel advertising bookings being deferred is already having an impact, something which will in part contribute to a 10% fall in ad revenue for April. The dividend is being maintained and although it’s too early to assess further implications of the COVID19 outbreak, the company otherwise believes it’s on target to meet medium term objectives.
Domino’s Pizza
Full year numbers from Domino’s Pizza [LON:DPZ] show another good performance in the UK & Ireland market. Sales are up almost 5%, EPS is up 1.1% and dividends are being bolstered by 2.7%. The company continues in its quest to unwind investments in unprofitable overseas ventures which is likely to be welcomed by shareholders, with the business having tried various strategies here in recent time. The note acknowledges COVID19 but adds that the impact is still difficult to ascertain, although states contingency plans are in place. A combination of potential staff absence from work and broader economic uncertainty won’t do the business many favours.
Aviva
Solid full year numbers from Aviva [LON:AV] this morning too, although admittedly there’s a lot of information to digest. Return on Equity was 14.3%, operating profits increased 6% and shareholders will be rewarded with a 3% uptick in dividends. The outlook is seen as being positive in the majority of markets, but the COVID19 situation presents a degree of uncertainty in relation to macroeconomic trends. The company does however believe that its strong balance sheet will be sufficient to help it ride out any such volatility here.
