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Flutter claims FanDuel victory over Fox | Ryanair back in black

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5pm: Market lower

The FTSE 100 index closed down 34.85 points, 0.5%, at 7,299.99.

Sentiment has also been cautious ahead of tomorrow’s US mid-term elections and the latest CPI report later this week,” said CMC Market’s Michael Hewson.

On Saturday, China said that it will “unswervingly” stick to its zero-Covid policy. The doubling down had followed recent market optimism that Beijing would cast aside some of its economically damaging virus curbs.


7am: FanDuel dispute

Flutter Entertainment has declared victory in its long-running dispute with Fox Corporation which planned to take a stake in FanDuel, the fantasy sports gaming company created in Edinburgh.

Fox secured the right to purchase an 18.6% stake in FanDuel. However, the price Fox will be required to hand over for the stake will based on a valuation of $20bn, according to a ruling from New York arbitrator, and not an implied valuation of $11.2bn that it had been claiming. If Fox choses to exercise its option, it will be forced to fork out no less than $3.72bn.

Peter Jackson, Flutter chief executive, commented: “Today’s ruling vindicates the confidence we had in our position on this matter and provides certainty on what it would cost Fox to buy into this business, should they wish to do so.

However, Rupert Murdoch’s Fox also claimed success in the dispute, saying it was “pleased with the fair and favourable outcome of the Flutter arbitration. Flutter cannot pursue an IPO [stock market float] for FanDuel without Fox’s consent or approval from the arbitrator.”

Flutter claimed that Fox does not have a block on any potential IPO of FanDuel, should one occur.”


7am: National World backs The News Movement

National World, chaired by former Mirror Group boss David Montgomery, has invested $1.25 million in social-first media company, The News Movement, as it seeks to engage with young readers through social platforms including TikTok, Instagram, YouTube, Twitter and Snap.

The partnership will accelerate National World’s development of a new operating model while welcoming a younger audience to its portfolio of franchises, such as The Scotsman, The Yorkshire Post, and nationalworld.com.

Mr Montgomery, said: “The partnership with The News Movement will provide us with the expertise and experience to reach new and younger audiences, on platforms and in formats that they want to consume content.”

Full story here


7am: Ryanair

Ryanair has swung back into the black despite a massive hike in costs over recent months.

The airline said that it carried more than twice the number of passengers compared to a year ago, helping to push up revenue.

This fed further down the balance sheet as pre-tax profit reached €1.4bn in the first six months of the year, compared to a loss of €100m just a year earlier.

The company carried a record number of passengers in the second quarter and average ticket prices were around 14% higher than before the pandemic, bosses said.

Ryanair said the recovery for the remainder of FY23 remains fragile and could yet be impacted by new Covid variants or adverse geopolitical events such as Ukraine. 

However, forward bookings (both traffic and fares) remain strong into the peak Christmas travel period. 

“We hope to avoid any repeat of last year’s Omicron lockdowns which damaged last Christmas at such short notice,” said the airline.

“As is normal, at this time of year, we have almost zero visibility into Q4 which is traditionally our weakest quarter and which this year doesn’t have any Easter benefit.”


Global markets

London’s blue chip index was expected to open lower after last week’s 4.1% rise on the back of hopes that China would fully reopen.

China held a press conference on Saturday and said that it will “unswervingly” stick to its zero-Covid policy, deflating market hopes that Beijing would cast aside some of its economically damaging virus curbs.

Even so, stocks in Asia registered gains early today. The Shanghai Composite was up 0.2% and the Hang Seng in Hong Kong added 2.9%. The Nikkei 225 ended up 1.2% in Tokyo and the S&P/ASX 200 in Sydney rose 0.6%.

Apple warned that the curbs will impact on production at the world’s largest iPhone factory in central China, warning that customers will now face longer wait times ahead of the holiday season.

Foxconn, Apple’s principal subcontractor, locked down its massive factory in Zhengzhou last month after a spike in infections.

Sterling was quoted at $1.1330 early Monday in London, up from $1.1301 late Friday.



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