Today’s top news: UK economy fell into its deepest recession on record following lockdown. Asos and Admiral sail through worst of the crisis. New Zealand’s leader Jacinda Ardern says the September 19 election date is under review.
Corporate news you might have missed …
Losses at UK fintech Revolut tripled in 2019 as rising staff costs more than offset revenue growth, but the company said it was on track to break even this year despite the impact of coronavirus. Revolut reported a pre-tax loss of £107m, more than triple the £33m loss in 2018, driven largely by a massive hiring spree. Staff numbers increased from 633 to 2,261.
For the April to June quarter, SoftBank reported a net profit of ¥1.25tn ($12bn) compared with a net loss of ¥1.4tn in the previous quarter. That was above analysts’ forecasts for a net profit of ¥750bn, according to S&P Global Market Intelligence. Founder Masayoshi Son has pledged that SoftBank will remain in “crisis mode” despite the quarterly profit.
InterContinental Hotels Group, the owner of the Holiday Inn brand, said that it had signed deals for an average of one new hotel a day in 2020 despite falling to a loss due to coronavirus. Revenues in the six months to the end of June were $1.25bn, down 45 per cent from the same period last year, while the group slumped to a pre-tax loss of $275m.
US grocery group Kroger is to double the number of products available to consumers through online delivery, firing another shot in the battle for e-commerce supremacy. The Ohio company said it had accelerated plans for the expansion of the service to 100,000 products from the autumn, as the company plans to open the platform to third-party vendors.
Petrofac, the oilfield services company, has fallen to a half-year loss as it was “materially impacted” by the Covid-19 pandemic, which pushed its oil and gas clients to cut back on spending. The group posted a half-year pre-tax loss of $48m from a profit of $193m at the same point in 2019, as revenues also fell by a quarter to $2.1bn.
Saga, the UK over-50s travel specialists, said it would extend its insurance policies to include some cover for cancellation due to Covid-19. Customers taking out a new policy from Wednesday would be able to claim up to £10,000 per person if they need to cancel a holiday because of a positive Covid-19 test in the 14 days before they leave.
Publisher Time Out has issued its first magazine following a pandemic freeze, but warned its free printed listings on local urban life are likely to disappear from many of the 40 cities it used to serve. The 52-year-old magazine plans to resume print distribution only in London, where the title appeared on Tuesday for the first time in six months, Madrid and Barcelona.
Uniper said it might write off a loan to the controversial Nord Stream 2 gas pipeline, citing risk the project could be delayed or collapse under US sanctions. Despite such concerns and the economic crisis caused by coronavirus, the German energy company said operating profit in the first half of 2020 rose to €691m from €308m in the same period last year.