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Market Update

BT Group Lifts Italy Write Off, Crest Nicholson Home Prices Advance

Author: Sarla Buch
Last Update: 12:08 PM ET January 24 2017

4:00 PM Frankfurt BT Group tumbled after the company discovered more accounting irregularities in its Italian operations. Crest Nicholson profit and revenues surged after average home price and home volumes rose. Dixons Carphone said revenues soared 8%. PZ Cussons net plunged 36%.

In London trading, FTSE 100 index rose 9.56 to 7,160.38 and in Frankfurt the DAX index added 33.14 to 11,579.66.

In Paris, CAC 40 index edged up 2.62 to 4,824.05.

BT Group Plc declined 21% to 302.25 pence after the U.K.-based communications services provider warned profits and the accounting scandal cost in its Italian business over a number of years.

BT Italia had earlier written down almost 145 million in assets but now the telecom operator estimated charges may increase to 530 million on the discovery of additional improper accounting practices, sale, purchase and leasing of deals.

BT forecasted adjusted revenue to be broadly flat and pretax profit of 7.6 billion from the earlier estimate of about 7.9 billion. This will hit third-quarter earnings by approx 120 million and free cash flow of about 100 million.

Crest Nicholson Holdings Plc fell 0.5% to 488.90 pence after the U.K.-based home builder said revenues in the year ending in October soared 24% from a year ago to 997 million.

Net income in the period surged 26% from a year ago to 156.8 million compared to 124.1 million and diluted earnings per share increased to 60.09 pence from 48.4 pence.

The home builder said growth in profit was driven by an increase in volumes of houses sold and average selling price by 5% and 18% respectively. Crest said sales up to mid-January 2017 advanced 4% from a year ago to 533.5 million.

The residential property developer announced that it is on track to deliver 1.4 billion in sales and 4,000 homes by 2019.

Dixons Carphone Plc declined 5% to 319.30 pence after the U.K.-based electrical and mobile products retailer said revenues jumped 8% and forecasted pretax profit in the year ending in April between 475 million and 495 million.

PZ Cussons Plc tumbled 10.4% to 301.61 pence after the U.K.-based consumer products maker said revenues in the first-half ending in November dropped 2% from a year ago to 378.2 million.

Net income in the period plunged 35.9% from a year ago to 19.1 million compared to 29.8 million and diluted earnings per share slumped to 6.50 pence from 7.28 pence.

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