Keeping with the financial focus of the week, Wednesday will see the insurance sector in focus as Prudential reports its interim results.
In keeping with the theme of financial products focusing on potential outcomes, bookmaker Paddy Power Betfair will also be posting its half-year numbers, with investors paying particular attention to its US ventures.
The economic data diary will be largely empty by contrast, although there will be a few bits and pieces from across the Atlantic with US crude oil inventories and mortgage applications expected.
Pru doing the splits
Staying with financials, blue chip insurer Prudential’s full-year results in March were reasonably good but overshadowed by management’s plan to split the group up between the UK and its overseas operations.
This will take time, so investors will be seeking more clarification on the progress of this and execution timings when the Pru reports its interims on Wednesday.
Investors would also like to hear of updates to the business following some organisational changes, along with management moves.
Meanwhile, the group should continue to see good results from its international operations, while investors will also hope to see the dividend being raised to become more comparable to some of its peers.
World and US focus for Paddy Power Betfair
In a different financial world, results statements from bookmakers, are typically punctuated by commentary on their book; essentially, what big results landed in whose favour and how much did that help or harm the house.
So with interim numbers from Paddy Power Betfair plc (LON:PPB) on Wednesday, obviously, we’ll be hearing about the World Cup and, perhaps most significantly, England’s unexpected charge all the way to the semi-final.
For shareholders, the hope will be that sufficient numbers piled onto the ‘it’s coming home’ bandwagon so that the company made a few quid. Many of the pre-tournament favourites (Germany, Brazil, Spain, and Argentina) crashed out prematurely, so that also bodes well for the performance of the sports book.
The interim results will also give shareholders further insights into Paddy Power’s ongoing expansion into the United States, after the US Supreme Court earlier this year opened up the sports betting market earlier this year.
Indeed, the London-listed bookmaker has already moved quickly by merging its US assets with fantasy sports firm FanDuel Inc (with PPB initially taking 61% of the joint company) back in July, before further bolstering US market access with a new partnership with Boyd Gaming in recent days.
Investors have yet to properly assess the scope of the US opportunity, so naturally it will be a key focal point when Wednesday’s outlook statement lands.
Significant announcements expected:
Wednesday August 8:
Interims: Prudential PLC (LON:PRU), Paddy Power Betfair plc (LON:PPB), Glencore PLC (LON:GLEN), PageGroup PLC (LON:PAGE), Hastings Group PLC (LON:HSTG), Hill & Smith Holdings PLC (LON:HILS), Morgan Sindall Group PLC (LON:MGNS), Mereo BioPharma Group Plc (LON:MPH), Share plc (LON:SHRE), Stocks Spirits Group PLC (LON:STCK), Spirax-Sarco PLC (LON:SPX), TI Fluid Systems PLC (LON:TIFS)
Trading update: Bellway (Q4) (LON:BWY), UDG Healthcare PLC (Q3) (LON:UDG)
Economic data: US crude oil inventories, US MBA mortgage applications