Entain PLC, Persimmon PLC, Jet2 PLC and CFD auction results on Thursday’s agenda (plus some politics too)


With almost certainly more political fallout in Westminster on Thursday, investors will have the results of Ladbrokes and Sportingbet owner Entain, homebuilder Persimmon and airline Jet2 to wade through.

An announcement is also expected tomorrow from the UK Department for Business, Energy and Industrial Strategy on the results of the latest Contracts for Difference auction, with the final allocation of new technology grants.

The government will send out contracts to successful generators, making a formal offer for a CfD, which is the government’s main method of supporting renewable energy (read the full auction preview here).

This week the UK betting industry was supposed to await the publication of a major government white paper, although a Guardian report suggests concerns have been raised in Westminster that No 10 political advisers with links past with the gambling industry “could oppose tougher regulations designed to protect vulnerable people and addicts”.

Even so, Entain PLC (LSE:ENT), for which the UK market is much less important these days, will post trade in the second quarter, with its shares down 32% year-to-date but still in up a quarter from before. the pandemic.

Overall, a tougher business outlook is expected for the group heading into the second half, Jefferies analysts said, “with pressure on the assumption of a return to double-digit revenue growth. online,” including due to previously announced regulatory delays in the Netherlands, slower growth in emerging markets, higher taxes in Australia and tougher times for consumers.

After revenue fell 6% at constant currencies in the first quarter, year-over-year comparisons will remain tough in the second, so Jefferies expects only “modest improvement in trend.” .

Elsewhere, Persimmon PLC (LSE:PSN) will provide an update on Thursday, with its shares down a further slight, 35%, so far this year, as investors worry about how interest rate hikes will interest and mortgage rates affect the demand for homes manufactured by society and its peers.

Shares are now yielding more than 12% – although it is far from the only high-yield builder that investors are overlooking (read the full Persimmon overview here).

Among other results for the day, Jet2 PLC (AIM:JET2) – shares down 25% year-to-date – are expected to post a marginally larger loss of £331m on sales that climbed to 1, £28 billion compared to £395 million the previous year. .

“We believe the outlook for the summer will be an important priority,” UBS analysts said.

In April, Jet2 said its summer 2022 seat capacity was about 14% higher than summer 2019 and that bookings “are encouraging” with package holiday customers “showing a noticeable mix higher of the total at +12ppts”.

Macro Matters

For macro-watchers, there will also be minutes from the previous European Central Bank meeting, which “will be highly sought after, as markets attempt to assess how the growth-inflation trade-off affects policymakers’ thinking,” Deutsche Bank said.

Ahead of Friday’s main event of the big US non-farm payrolls report, there will be no ADP private payrolls report, which normally arrives a day early.

Earlier this week, the ADP Research Institute and the Stanford Digital Economy Lab announced they would be revamping their jobs reporting methodology “to provide a more robust, high-frequency view of the labor market.”

As a result, they will suspend publication of the report with the aim of restarting it on the last day of August.

“I’ve often railed against the ADP report,” says analyst Marshall Gittler of BDSwiss, “which typically comes out two days before the US Nonfarm Payrolls (NFPs) it’s supposed to track but unfortunately contains little detail.” valuable information useful for predicting NFP.”

Thursday July 7

Finals: Baltic Classifieds Group PLC (LSE:BCG), Currys PLC (LSE:CURY), Jet2 PLC (AIM:JET2), Watches of Switzerland Group PLC (LSE:WOSG)

Interims: John Wood Group PLC

Business Updates: Entain PLC (LSE:ENT), Ferrexpo PLC (LSE:FXPO), Persimmon PLC (LSE:PSN), RS Group PLC, Time Finance, Victrex PLC (LSE:VCT)

Points to be deducted from the FTSE 100 by ex-divs: 5.67 (British American Tobacco, Coca-Cola HBC, AVEVA, JD Sports, Next)

AGM: 3i Infrastructure PLC (LSE:3IN), Brown (N) Group PLC, C&C Group PLC (LSE:CCR), Distil (AIM:DIS) PLC, Emmerson PLC (AIM:EML, OTC:EMSNF), FD Technologies PLC ( AIM:FDP), Great Portland Estates (LSE:GPOR), Land Securities Group PLC (LSE:LAND), Maven Income & Growth VCT PLC, Octopus Apollo VCT PLC, Pets at Home Group PLC (LSE:PETS), Puma VCT 13 PLC, J Sainsbury PLC (LSE: SBRY), Severn Trent PLC (LSE: SVT), TomCo Energy PLC (AIM: TOM)

Economic announcements: Halifax House Price Index (UK), Continuing Claims (US), Initial Jobless Claims (US)


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