Thursday, October 03 12:44:39
The ISEQ stayed above the line this morning thanks largely to a strong showing from Smurfit Kappa after they announced a major refinancing.
The index was up 5.58 points to 4,281.23.
Dublin-based global packaging and paper group, Smurfit Kappa, this morning said it is refinancing E500m worth of senior notes due 2017. The redemption of the senior dent will come from around E220 million from the Group's existing cash resources plus existing credit facilities, it told the markets this morning. It said it expects cash interest savings from the redemption will be around E30 million a year and the transaction will be immediately earnings accretive with an annualised increase in EPS of approximately 11 cent. Shares in the group rose by 39c to E17.33.
UK bookies William Hill today announced that its Q3 earnings have come in £20m below its expectations. In online, the earnings miss seems to be sports results related. Gross win margin came in at 6.3pc versus an expectation of 7.75pc (and 7.8pc in Q3 2012). An unfavourable run of football results has been the key driver of the lower gross win margin. Staking levels were up 42pc (Davy: +44pc), so are broadly in line though notably there was no incremental positive recycling effect as a result of the weaker margin. Costs were up 12pc in the quarter versus our expectation of up 20pc. "However, this was likely due to the timing of marketing spend; marketing as a percentage of NGR came in at 26pc versus Davy's expectation of 27.9pc. We believe that guidance in relation to this number is unchanged for the full year," the broker said. Shares in Paddy Power rose 16c to E60.01.