Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Deliveroo bouncing towards profitability
Deliveroo [LON:ROO] has published its half year report this morning, noting revenues up 12%, orders up 10% and gross transaction value some 7% higher. The company notes it gained market share in both the UK & Ireland, as well as key international markets, and gross profit margins ticked 130bps higher too. EBITDA is improving but remains negative, although the company is taking this as a signal that profitability is within reach. Guidance remains unchanged.
#2. TUI Flight disruption costs take toll, full year profit in sight
Tour operator TUI [LON:TUI] has issued Q3 numbers covering the period to 30th June. The three month period saw travel at 84% of pre-pandemic levels but expectations are that traffic over the summer is on track to come in very close to those numbers seen in 2019. Flight disruption has hit the bottom line hard, costing some EUR75m, but removing this leaves the company clearly profitable on an EBITDA basis for the quarter. There’s an ongoing drive to reduce costs and the company still expects to post a significant positive EBITDA for the full year.
#3. Prudential operating profits up 8% at half year
Prudential [LON:PRU] has posted half year results this morning, noting an 8% rise in operating profits but flagging ongoing challenges in some markets where COIVD restrictions persist. That’s been especially obvious in Hong Kong, a traditionally high margin venue for the business. Excluding the impact of interest rate changes, new business profits were broadly flat and although those profit readings fell slightly short of consensus analyst estimates, the gap was minimal.