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Market Update

Aviva Sells Italian Bank Stake, Computacenter Surged on Strong Outlook


Author: Sarla Buch
ticker.com
Last Update: 9:37 AM ET August 25 2017

4:00 PM Frankfurt Aviva agreed to sell stake in its Italian subsidiary to Banco BPM. Computacenter profit surged and reaffirmed improved fiscal forecast. Havas net plunged 34% and agreed to acquire Israeli social media agency Blink. Henry Boot net jumped.

In London trading, FTSE 100 index slid 5.60 to 7,401.46 and in Frankfurt the DAX index decreased 12.89 to 12,167.94.

In Paris, CAC 40 index edged down 8.79 or 0.2% to 5,104.33.

For the week, FTSE 100 index jumped 1.2%, the DAX index edged up 0.02% and the CAC 40 index edged down 0.1%.

Aviva Plc rose 0.3% to 525.95 pence after the U.K.-based insurance services provider agreed to divest the stake in its Italian subsidiary to Banco BPM, the newly formed Banco Popolare and Banca Popolare di Milano for undisclosed financial terms.

Separately, the insurer lowered its stake in the U.S.-based Constellation Brands Inc by almost $20 million.

Computacenter Plc surged 15.3% to 1,016.11 pence after the U.K.-based information technology provider stated revenues in the first-half ending in June soared 15% from a year ago to 1.7 million.

Net income in the period more than doubled to 34.5 million from 16.1 million in a year ago six-month period and diluted earnings per share jumped to 28.3 pence from 13.2 pence.

Computacenter said services revenue jumped 12.9% to 562.1 million, and the growth was driven by strong performance in Germany and in the U.K. but in France revenues fell slightly.

The technology services provider reaffirmed in fiscal 2017, it remains on track for a ""record performance"" ahead of the previously upgraded guidance and exceed market expectations benefiting from positive market conditions, growth in Germany, France and in the U.K.

Havas SA edged up 0.01% to 9.24 after French-based communication services provider reported revenues in the first-half ending in June jumped 1.9% from a year ago to 1.1 billion.

Net income in the period plunged 34.1% to 54 million from 82 million in a year ago six-month period and diluted earnings per share slumped 0.13 from 0.20.

The advertising and marketing services provider said as of June 30, net debt declined 22.1% to 73 million from 95 million in the same period a year ago.

Havas forecasted growth and profitability in the second-half is slightly expected to improve. The agency said it is unable to confirm the growth between 2% and 3% that it estimated in the beginning of the year but the recent renewals and new account wins will offset the losses which will impact fiscal 2018.

On August 23, Havas agreed to buy Israel based social media agency Blink without disclosing of financial details.

Henry Boot Plc fell 0.1% to 304.50 pence after the U.K.-based construction services provider said revenues in the first-half ending in June surged 82% from a year ago to 195.4 million.

Net income in the period jumped 9.1% to 18 million from 16.5 million in a year ago six-month period and diluted earnings per share advanced to 13 pence from 11.8 pence.

Novae Group Plc gained 1.8% to 710 pence after the Bermuda-based specialty insurer AXIS Capital Holdings Limited raised its offer for the U.K.-based diversified property and casualty insurance provider to 715 pence per share in cash or about 477.6 million or $611 million.

In July, AXIS Capital had offered 700 pence per share.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc