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Market Update

Tesco Agrees to Buy Booker for 3.7 B; BT Group, UBS Profit Tumbles

Author: Sarla Buch
Last Update: 10:58 AM ET January 27 2017

4:00 PM Frankfurt BT Group profit plunged 37% but revenues soared 32% on the rising new customer additions. Sabadell net rose while net interest in the year jumped 20%. Tesco agreed to acquire Booker Group for 3.7 billion. UBS net tumbled 22%.

In London trading, FTSE 100 index rose 11.15 or 0.2% to 7,172.64 and in Frankfurt the DAX index slid 22.96 or 0.2% to 11,825.64.

In Paris, CAC 40 index slipped 20.89 or 0.4% to 4,846.35.

For the week, FTSE 100 index fell 0.4%, the DAX index gained 1.7% and the CAC 40 index edged down 0.1%.

BT Group Plc rose 0.1% to 302.45 pence after the U.K.-based communications services provider reported revenues in the third-quarter ending in December soared 32% from a year ago to 6.1 billion.

Net profit in the period plunged 37% from a year ago to 526 million compared to the 832 million and earnings per share slumped to 3.8 pence from 9.2 pence.

In the quarter, BT said postpaid mobile customers increased 276,000 but the number of prepaid customers dropped by 326,000. TV services customers continue to grow and new customers increased by 52,000 and retail fiber broadband customers increased 260,000 and reached to total of 4.7 million customers in the year.

Banco de Sabadell SA advanced 2.3% to 1.40 after Spain-based financial services provider reported net interest in the year jumped 19.8% from a year ago to 3.8 billion.

Net profit in the year rose 0.3% from a year ago to 710.4 million compared to the 708.4 million and earnings per share were flat at 0.13 from same period a year ago.

Paragon Group of Companies Plc gained 0.8% to 406.60 pence after the U.K.-based financial services provider said operating profits in the quarter ending in December were in line with management expectations to 33.1 million and deposits doubled to 2.03 billion from 1.05 billion reported in December 2015.

The lender said total investments in the quarter jumped to 380.7 million from 254.4 million in December quarter but declined from 460.6 million reported in the same period a year ago.

Tesco Plc soared 8.5% to 205.10 pence after the U.K.-based supermarket chain operator agreed to acquire food wholesaler Booker Group for 3.7 billion or $4.66 billion.

Under the terms, Booker shareholders will receive 42.6 pence in cash and 0.861 new shares of Tesco.

Booker Group Plc stock surged 18.4% to 216.70 pence.

UBS Group AG declined 3.8% to 16.37 Swiss francs Switzerland-based financial, brokerage and advisory services provider reported total revenues in the fourth-quarter ending in December increased 3.9% from a year ago to 7.1 billion francs.

Net profit in the quarter tumbled 22.1% from a year ago to 738 million francs compared to the 949 million francs and diluted earnings per share dropped to 0.19 francs from 0.25 francs.

UBS said its adjusted return on tangible equity in the quarter jumped 8.2% and operating income rose 4% to 7.06 billion francs and operating expenses fell 5% from a year earlier.

In the year, UBS reserve 693 million francs in litigation provisions.

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