The Week Ahead: BSkyB to update after takeover hopes end

It is fair to say it has been rather a dramatic few weeks for BSkyB, but now that News Corp has withdrawn its bid, investors' attention will be back on the broadcaster's numbers when it announces its full-year results on Friday.

Ever since the takeover was scuppered, a lot of focus around the group has been about whether it will take the opportunity to return cash to shareholders. JP Morgan Cazenove believes there is a potential for a special dividend of 120p, and the broker says that the subsequent leverage level would be "comfortable".

The broker estimates that BSkyB will reveal that it has achieved nearly 350,000 net additions and that it continues to see an improvement in its margins, "with the investment cycle at a low point in the short term".

Numis Securities' Paul Richards, meanwhile, is expecting a profit-before-tax of £950m, slightly under market forecasts, and a rise in its revenues of around 10 per cent to £6,488m. Overall, says the analyst, it will show "another good operational and financial performance, with continued progress on broadening the group's product range and expanding margins".

On the outlook, Mr Richards notes that earnings will come under pressure from BSkyB's decision to keep its package prices at the same level next year, although he adds that there will be "partial mitigation from ongoing cost efficiencies".



Today

The week starts with Domino's Pizza's interim results, with Peel Hunt expecting the pizza delivery group to reveal a pre-tax profit of just over £19m, a rise of 13 per cent, and that it has opened 19 new stores, matching the same period the previous year.

Results/Updates: Domino's Pizza, National Grid and Reckitt Benckiser.



Tomorrow

After enjoying a boost from Apple's impressive numbers last week, ARM Holdings releases its second-quarter results on Tuesday. Matrix is expecting an operating profit of £41.7m, but feels that its guidance for the following three months "could be muted" thanks to recent weakness in the wireless market as well as supply chain disruptions following on from the Japanese earthquake and tsunami.

Another updating the market tomorrow is BP, with the energy giant announcing figures for the first time since its tie-up with Rosneft fell apart. Saying the results are "set to reflect the transition period that the company is in", Bank of America Merrill Lynch sees "limited room for surprises" and predicts it will still be "losing high margin barrels due to extensive maintenance in Angola and the lack of drilling permits in the Gulf of Mexico".

The broker feels its production will have dropped 11 per cent year-on-year, while Collins Stewart's analysts are slightly more pessimistic, predicting a fall of 12 per cent. In terms of its downstream operations, they say it will have been hit by problems at its Texas City refinery as well as "lower trading profits than the exceptional levels of the first quarter".

Results/Updates: African Barrick Gold, ARM Holdings, BG Group, BP, DMGT, GlaxoSmithKline, Imperial Tobacco, Informa, Pace and PZ Cussons.



Wednesday

British American Tobacco reveals its first-half results on Wednesday, with the cigarette manufacturer's organic volumes having dropped 1.8 per cent in the first quarter. Royal Bank of Scotland thinks it will end seeing a decline of 2 per cent for the first six months, but that its organic revenue will still rise over 5 per cent thanks to continued strong pricing.

The broker's analysts expect it to have received a boost in the Asia Pacific region from recent supply problems experienced by Japan Tobacco, although they add that "any profit impact will be much more subdued, since the stock is being air-freighted". Meanwhile, they believe volumes will have fallen across most of the Americas region, while in Spain an increase in tax and a aban on smoking means Western Europe is "likely to be weak".

Results/Updates: Autonomy, Brewin Dolphin, British American Tobacco, CSR, Dignity, easyJet, ITV, Laird, Lancashire Holdings, Marston's, Provident Financial, Rathbones, Renishaw and Sage.



Thursday

Results/Updates: AstraZeneca, BAE Systems, BT, Centrica, Croda, Compass, Halma, Investec, Invensys, Kazakhmys, Kofax, Mondi, National Express, Northumbrian Water, Rank, Reed Elsevier, Rolls-Royce, Royal Dutch Shell, RPS, Shire, St James's Place, TalkTalk and Tate & Lyle.



Friday

Results/Updates: Anglo American, BSkyB, Charter International, IAG, Jardine Lloyd Thompson, Pearson, Rentokil Initial, Travis Perkins and UBM.

Economic Diary

Today

BBA high street banking statistics; US Chicago Federal national activity index.



Tomorrow

GDP preliminary estimate; service sector figures; US consumer confidence.



Wednesday

CBI industrial trends survey; US durable goods orders.



Thursday

CBI monthly distributive trades survey; Land Registry house price index; US pending home sales.



Friday

US GDP; US University of Michigan consumer sentiment index.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Business Development Executive - Affiliates & Partnerships

£20000 - £35000 per annum: Recruitment Genius: This multi-award winning foreig...

Recruitment Genius: Retirement Coordinator - Financial Services

Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...

Recruitment Genius: Annuities / Pensions Administrator

Negotiable: Recruitment Genius: You will be the first point of contact for all...

Ashdown Group: HR, Payroll & Benefits Officer - Altrincham - up to £24,000.

£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...

Day In a Page

No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat
Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

Saudi airstrikes are fuelling the Gulf's fire

Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

The only direction Zayn could go

We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

Spells like teen spirit

A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

If fashion is a cycle, this young man knows just how to ride it

British designer Jonathan Anderson is putting his stamp on venerable house Loewe
Number plates scheme could provide a licence to offend in the land of the free

Licence to offend in the land of the free

Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

From farm to fork in Cornwall

One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
Robert Parker interview: The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes

Robert Parker interview

The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes
Don't believe the stereotype - or should you?

Don't believe the stereotype - or should you?

We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor