Discovery's earnings likely to be 10% lower
Discovery advised on Wednesday (28 August) that it expected headline earnings per share (HEPS) for the year to June to be up to 10% lower than those of the previous year. It said this was after accounting for the recapture of reinsurance and an increase in the fair value of puttable non-controlling interest financial liability.
However‚ normalised HEPS were expected to be between 15% and 25% higher.
In the current period‚ Discovery had continued to focus on the progression of normalised headline earnings that exclude the accounting effect of the Standard Life Healthcare acquisition‚ the recapture of reinsurance and the accounting for the puttable non-controlling interest financial liability. Management believed this best represented the underlying operating performance‚ it said.
Discovery will release its results on 3 September.