Discovery’s share price took a tumble on Monday as the market reacted to its voluntary trading statement.
The share price for the company was down by more than 7% at the close of business on Monday.
Discovery’s share price was trading at around R123.97 on Tuesday at 8.30am.
Over the last year the share price has declined by 13.72%.
Yesterday, Discovery said that its update for the six months ended December 31, 2023, noted that its expected headline earnings per share (Heps) would be either slightly lower or minimally higher of the interim period.
According to the statement, headline earnings (HE) is expected to be between 3% lower and 2% higher.
The financial services company revealed that it expects EPS to be between 478.10c and 502.50c, as compared with revised 487.90c recorded in the previous year.
Discovery expects heps to be between 483.40c and 508.40c, as compared with revised 498.40c recorded in the previous year.
The company also noted that its normalised headline earnings (NHE) is expected to increase by between 8% and 13%, and new business annual premium income increased by 28%.
“The difference between the growth in NHE and HE is largely explained by the considerable prior period fair value gain from the UK interest rate swaption,” Discovery said.
“The swaption was realised towards the end of the prior financial year and so has no profit impact in the reporting period and consistent with prior reporting, headline earnings are normalised for this.”
Discovery intends to report its interim 2024 financial results on 20 March 2024.
IOL Business