Three things you need to know as the UK financial markets open, from Tony Cross.
Apologies for the lack of commentary so far this week. Flu season has taken its toll but hopefully things are on the rebound.
#1. Game on as all Entain’s key markets deliver revenue growth in Q3
Gambling company Entain LON:ENT published Q3 earnings this morning. Shares were rattled at the start of the week in response to media speculation that the imminent UK budget could see a tax grab on the industry although the note makes no apparent reference to this risk, instead focusing on the broad based growth seen during the reporting period. As a result of this the company is also upgrading full year guidance with EBITDA now expected to be towards the top end of previously stated guidance.
#2. No surprises but will Rentokil investors find any cause for cheer?
Q3 numbers also out from Rentokil Initial LON:RTO. There doesn’t appear to be much to see here with global revenues modestly higher on a constant currency basis, with both the revenue and margin guidance for the full year unchanged. Underperformance in the US is continuing to be addressed and the note adds that FY25 profit figures will be impacted by the timing of synergy delivery, expected to be pushed out by approximately 2 to 3 months as a result of the Q1 2025 integration review period.
#3. Ibstock: Solid performance against challenging building backdrop
Ibstock LON:IBST has a trading statement out as well which whilst light on numbers does highlight how cost and capacity controls have managed to leave EBITDA for the period broadly in line with our expectations and margins remaining resilient. FY expectations are in line with those already provided at the interim stage. A series of focused investments have also been made, positioning the company well for lower cost, more sustainable production as market conditions recover.
