The S&P/ASX 200 (ASX: XJO) traded sharply lower on Friday morning as the Australian share market braced for a day of volatility following a sharp sell-off overnight.
Making investment headlines today is Pointsbet Holdings Ltd (ASX: PBH), UNIBALWEST/IDR UNRESTR (ASX: URW) and Virgin Australia Holdings Ltd (ASX: VAH).
Market update — here’s what we know:
- US President Donald Trump has announced the USA will restrict travel from all European countries
- Trading on US sharemarket was halted for the second time in a week following a steep sell-off
- The Australian share market (ASX 200) had already fallen 14% this week – before today’s sell-off
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ASX News Today
1. PointsBet Holdings Ltd
PointsBet is a bookmaking/gambling business operating in Australia and USA. It provides wagering services via a cloud-based platform.
This morning, the sports betting technology company reported on the potential impact to its business following decisions by major sporting leagues, including the NBA and various soccer leagues around the world, to cancel or postpone their tournaments. In a step to reassure the market, PointsBet said had $147.9 million of cash as of 31 December 2019, along with no borrowings.
The company added: “it is important to note that marketing costs are predominately variable in nature, thus providing PointsBet flexibility to adjust and optimise its marketing spend given the developing circumstances.”
2. WFD Unibail-Rodamco
Unibail-Rodamco-Westfield is a giant real estate business that owns a global portfolio of retail centres, offices and convention & exhibition centres across Europe and North America. It is listed on Euronext Amsterdam, Euronext Paris and the ASX in the form of CHESS Depositary Interest (CDIs).
This morning, Unibail released its 2019 financial statements to investors, showing a 64% increase in net revenue income (in euro). At the bottom line (profit), Unibail reported a result of €87.8 million, down from €187.9 million euros last year. With regards to its dividend payments, the company proposed a cash dividend of €10.80 per stapled share, paid in two parts.
3. Virgin Australia Holdings Ltd
As is suggested in the name, Virgin Australia Holdings Limited is a holding company for Virgin Australia International Airlines, Virgin Australia Domestic Airlines and also Tigerair Australia. Tigerair was acquired by Virgin in 2015.
Following in the footsteps of Qantas Airways Ltd (ASX: QAN), Virgin today took its turn in delivering its Coronavirus trading update to investors. In a statement to the ASX Virgin said it would respond to the unfolding market conditions by reducing flights and not provide its profit guidance or forecasts.
“We have already announced a number of measures to mitigate the impact from COVID-19, however, the pace of the global spread and decline in demand has required us to implement further changes today to minimise the future financial impact,” Virgin Australia CEO Paul Scurrah said.
The business currently has $1 billion of cash on its balance sheet and added that it has no significant debt due to mature until October 2021.
“Pleasingly, our travel bookings to Western Australia and local leisure destinations such as the Gold Coast, Sunshine Coast, and Hamilton Island continue to be ahead of where they were at the same time last year. This demonstrates Australians are continuing to travel within our own backyard and support local tourism.”
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