Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg data.
Speaker 3: But let's take a look at some stocks on the
Speaker 3: move today in Europe. I'm Stephen Carroll and I'm joined
Speaker 3: by Bloomberg's Breaking News editor Louise Moon. Louise, good morning. Let's
Speaker 3: start in the UK then with right Move. The property
Speaker 3: website reporting earnings and shares certainly not making the right
Speaker 3: move this morning.
Speaker 4: Indeed absolutely plunging this morning. They were the biggest faller
Speaker 4: on the foot seat one hundred. It's a really it's
Speaker 4: a dramatic look at their share price move. They've been
Speaker 4: on an absolute tear for years. They've gained huge market
Speaker 4: share and then if you look today, it kind of
Speaker 4: falls off a cliffs. They're back to levels last scene
Speaker 4: in about August last year. So this is partly there's
Speaker 4: someone's certainly around the budget. They flagged that, but also,
Speaker 4: as you say, they're warning on revenue growth likely to
Speaker 4: be flat in twenty twenty, they're saying growth of about
Speaker 4: nine percent this year and much the same in twenty
Speaker 4: twenty six.
Speaker 1: So it's about eight percent to ten percent.
Speaker 4: They've also delayed their goals for sales growth from twenty
Speaker 4: twenty eight to twenty thirty, so they've pushed that back
Speaker 4: as well. And this is all coming as they also
Speaker 4: unveiled plans to boost AI investments, so a lot more
Speaker 4: investment into AI potentially could impact their revenue, and analysts
Speaker 4: are saying, you know, this could be two steps back
Speaker 4: for three steps.
Speaker 1: Forward kind of things.
Speaker 4: So, and there's a lot of pressure to explain why
Speaker 4: now is the time to do that, considering they've been
Speaker 4: doing so well. So there's a really interesting note from
Speaker 4: Bloomberg Intelligence and they're saying that they think that this
Speaker 4: shows that management think that this kind of historic solid
Speaker 4: top line trend is becoming tougher to sustain and they
Speaker 4: need to spend more and invest more to keep that
Speaker 4: going in the long run, even if this is going
Speaker 4: to hamper or potentially hamper revenue growth in the short term.
Speaker 3: Yeah, really interesting to see how that company is reacting
Speaker 3: to those broader headwinds. Looking at ITV shares moving en
Speaker 3: very much the opposite direction. After inning that it's in
Speaker 3: talks with the owner of sky Comcast or at the
Speaker 3: sale of its media and entertainment time.
Speaker 1: Indeed, shares are soaring on the back of this.
Speaker 4: They jumped about twenty percent this morning, so leading the
Speaker 4: midcaps the foot C two fifty as you say. So
Speaker 4: Sky is in talks to buy ITV's media and entertainment arms.
Speaker 4: That would be for they're saying that would be for
Speaker 4: about one point six billion pounds. So this is the
Speaker 4: arm that is behind their free to air TV channel
Speaker 4: and also their streaming platform. So if this deal went through,
Speaker 4: it would leave ITV with their studios units, so that's
Speaker 4: the unit that produces a lot of their entertainment shows.
Speaker 4: So Britain's got Talent, Love Island, all those guilty pleasures.
Speaker 4: But as you say, ultimately Comcast the US Chianet would
Speaker 4: be the owner because they own the Sky, So it
Speaker 4: would be if it goes through, it be a real
Speaker 4: shake up in the broadcasting space. It would create a
Speaker 4: broadcasting giant, and it follows years of ITV being tipped
Speaker 4: as a potential takeover target.
Speaker 1: Their shares have really struggled.
Speaker 4: They're about seventy percent off a twenty fifteen peak, and
Speaker 4: this was kind of those shares that I mean, they
Speaker 4: plunged even more last month that their larger largest shareholder,
Speaker 4: Liberty Global, cut their stake in half. They had previously
Speaker 4: been touted as a buyer. So ITV has been struggling
Speaker 4: for a long time as the media industry kind of
Speaker 4: shifts away from traditional broadcasting. So Alice is saying that
Speaker 4: this is a this is a positive surprise, and if
Speaker 4: the deal goes through, it would be at quite a
Speaker 4: healthy multiple. So as I say, shares reacting positively on
Speaker 4: the back of that.
Speaker 3: And last week to monitor PASCIDCNA, the Italian lender posting
Speaker 3: better than expected profits in the third quarter.
Speaker 4: Indeed, third quarter results, net income better than expected, they
Speaker 4: increased their guidance for full year profit, and shares reacting
Speaker 4: positively on the news. They were the best performer on
Speaker 4: the stock six hundred bank indecks this morning. They're saying
Speaker 4: that this reflects their recent takeover of Mediobanker that their
Speaker 4: rival lender, their arrival Italian lender SAT completed in September
Speaker 4: and it created Italy's third largest lender by assets. So yes,
Speaker 4: doing well, strong third quarter results and listen noting those
Speaker 4: strong revenues, better cost controls and all that positive news,
Speaker 4: and so The next thing now to be looking for
Speaker 4: will be in their first quarter next year. They're going
Speaker 4: to present a new strategy, so how they're going to
Speaker 4: move forward post that large takeover.
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