ITV PLC’s (LON:ITV) will likely be among the top financial headlines on a busy Thursday, and, it may even update investors on the future of Love Island.
A shadow was cast on the reality show after the recent tragedy of former presenter Caroline Flack's death. According to media reports, the first episode following Flack’s death recorded 1.9mln viewers as opposed to the series high of 2.4mln.
The TV channel has also reportedly opted to cancel the usual spin-off showing a reunion of the winter participants.
The reality show, which has been driving performance last year, is still on for next June.
Another element of interest will be the recently launched streaming service joint venture with the BBC, BritBox, which competing against giants such as Netflix, Amazon Prime and the upcoming Disney+.
“With the share price falling back to pre-election levels investors will be hoping for continued improvement in its online offering and costs,” analysts at the Share Centre said.
Asia-focus for Aviva
Aviva PLC (LON:AV.) shares are down around the six-year lows seen last summer, and a strong focus on Asia that will mean its update is closely watched.
Chief executive Maurice Tulloch, who was only promoted last March, unveiled his strategic vision for the life insurer in November that was less aggressive than some investors were hoping.
Having reversed his predecessor’s plans to combine the life and general insurance businesses, Tulloch decided not to sell Aviva’s Chinese business but instead exit its Hong Kong joint venture and continue mulling options for its operations in Hong Kong, Vietnam and Indonesia.
Analysts at Barclays said Aviva was “growing slowly and has no obvious catalysts”, with excess distributions to shareholders “significantly less likely”.
Aviva and L&G both have general insurance arms that will also make events in the first couple of months of 2020 interesting with regards to floods claims in the UK.
Admiral motoring
In its pre-close trading update in early February, Admiral Group PLC (LON:ADM) said motor insurance would be the key to annual profits being higher than expected.
The FTSE 100-listed group said profit before tax for 2019 will be in the range of £510-540mln due to elevated levels of injury claims from road accidents after the government changed the ‘Odgen rate’, the amount of discount applied to compensation paid to victims of life-changing injuries.
Thanks to this, and a “strong” solvency position, Admiral has said it will propose a final dividend in the range of 73-78p per share but warned that profitability in 2020 would be hit by the higher levels of claims inflation during 2019 and as a result, Admiral expects its loss ratio to be higher than recent years.
What’s the takeaway for Domino’s?
Domino’s Pizza Group PLC (LON:DOM) is expected to deliver a set of final results in line with the dismal expectations it set out last month. The fast-food chain has been struggling in its international arms - namely Norway, Sweden, Iceland, Switzerland and Germany - culminating in a giveaway of its Norwegian business.
In a fairly unusual deal, the FTSE 250-listed group had to pay two existing minority shareholders to take over the loss-making Norwegian stores, for an estimated total cost of £10mln. That will be an extra impairment to be factored in this year, where net debt is already expected to be just above guidance at £233mln.
Investors are looking to hear about franchisee profits as well as margins at the supply centre, while analysts at Peel Hunt see potential to boost performance in the UK once new management is appointed.
The company has been searching for an interim chief financial officer after the tragic passing of David Bauernfeind over the Christmas holidays. It is also looking for a new chairperson, which will be followed by the recruitment of a new chief executive as David Wild announced last year he would step down.
Significant events expected on Thursday 5 March:
Finals: ITV PLC (LON:ITV), Intu Properties PLC (LON:INTU), Aviva PLC (LON:AV.), Admiral Group PLC (LON:ADM), Domino’s Pizza Group PLC (LON:DOM), GVC Holdings PLC (LON:GVC), Melrose Industries PLC (LON:MRO), Spire Healthcare Group PLC (LON:SPI), PageGroup PLC (LON:PAGE), Premier Oil PLC (LON:PMO), Franchise Brands PLC (LON:FRAN), Gresham House PLC (LON:GHE), Headlam Group PLC (LON:HEAD), Schroders PLC (LON:SDR), Spirent Communications PLC (LON:SPT), Tyman PLC (LON:TYMN)
Interims: Kier Group PLC (LON:KIE)
FTSE 100 ex-dividends to knock 4.09 points off the index: BHP Group PLC (LON:BHP)
Economic data: US weekly jobless claims