Three developing stories at the UK stock market open.
1. Profits take off at IAG
Full year numbers from IAG LON:IAG, the owners of British Airways, are out this morning. Revenues are up 9%, operating profits advanced by almost 27% and adjusted EPS is up by 12%. Management intend to return a further EUR1bn of capital to shareholders over the next 12 months by way of a share buy back and expect the momentum to be sustained both in terms of customer demand and cost trajectories.
2. Share buyback from Pearson as results impress
Educational publisher Pearson LON:PSON has full year numbers out with sales up 3% but adjusted operating profits sitting some 10% higher, helped by margin expansion of 130bps. The full year dividend is being increased by 6% and the company intends to initiate a £350m share buyback. The FY25 outlook remains in line with expectations for both profits and sales.
3. Rightmove sees bumper traffic, profits nudge higher
Online estate agency Rightmove LON:RMV has its full years out today as well, with some superb metrics in the note. It was the UK’s fourth busiest digital platform, coming in behind sites like the BBC and Gov.UK, with consumers spending over 16 billion minutes on the site. Revenues added 7%, underlying operating profits were 4% higher and total dividends for the year were up 5%. The company plans to continue its theme of diversification in the year ahead and aims to sustain operating margins of 70%.
