5 Killer Stats
Tesla debt repayment
Elon Musk’s electric car company needs to repay almost a billion dollars’ worth of debt on Friday. The money was issued as a convertible loan note, so if the company’s shares trade above $359.87 – the so-called conversion price – the repayment can be made in shares. However, with the stock closing at $314 on Wednesday night, Tesla will more than likely have to pay up in cash instead.
Sales at Primark
A first half trading update from Associated British Foods, owner of Primark, revealed that despite Brexit uncertainty, sales at the fashion chain were up 4% against the same period last year. Far higher margins were sufficient to see the division upgrade its profit expectations, although the company as a whole expects profitability to be slightly down, with lower sugar prices weighing.
M&S deal with Ocado
Marks and Spencer is set to move into home delivery for groceries following an announcement this week of a partnership with Ocado. M&S will pay as much as £750m for a 50% stake in the venture, news which at one point added over 17% to Ocado’s share price. Investors in M&S were less impressed with the news – their shares have fallen by more than 10% in recent days.
ITV online advertising
The broadcaster published full year results this week, showing that economic and political headwinds were weighing on the company’s fortunes. Whilst online advertising was up 36%, overall advertising income rose by just 1% to £3.2 billion. The boost given by last year’s World Cup football will also make for a tough set of comparatives for the company.
British Airways buys new planes
IAG, the parent company of British Airways, has announced it is to buy up to 42 new Boeing aircraft to replace its ageing 747 fleet. Big deals like this tend to come with discounts, but the list price for the order is reported to be over $18 billion. To put that in context the company’s annual profit for 2018 was this week reported as just $4.2 billion.
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