Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Flutter Entertainment: US reaches transformative stage for wider business
Flutter Entertainment LON:FLTR has issued interim results for the six months to 30th June. Reported group revenues are up by 42% whilst EBITDA has added 76%, driving the company back to profitability for the period. H2 has started in line with expectations and management anticipate the full year numbers will offer no surprises. Critically the US side of the business is seen as being at a profitability inflexion point, which is transformative for the group’s performance. Average monthly player numbers stood at more than 12 million, up from 9.6 million in the comparative.
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#2. Coca Cola: bumper revenue increase despite modest fall in volumes
Coca Cola HBC LON:CCH also has interims to 30th June out today. Organic revenue is up almost 18% despite a modest decline in volumes. Perhaps one stand out point here is that volumes of bottled water sales were leading the decline and whilst this is a low margin product it potentially underlines shifting consumer habits. Last month the company upgraded full year expectations, pitching full year revenue growth in the mid-teens, well above the previously cited 5-6%.
#3. Bellway: material decline in reservations to impact near term earnings
Bellway LON:BWY issued a trading update for the full year to 31st July, showing housing revenue in line with previous guidance and only down fractionally on the comparative. However operating margins are being squeezed and reservation rates are off significantly, something which will filter into results going forward. Management note that legal completions will decrease materially, more details of which will be included in the full year results due in mid-October.
