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Trading update

Discovery have released a trading statement yesterday, the market was pleased I think with the overall performance. How can I say that when the trading statement came out at five minutes past the "closing bell"? It is not a trading statement that is ordinary, the release points out that as a result of acquiring all of Prudential's shares in the JV, the undiluted and basic earnings per share are expected to be 85 percent higher than the 301.4 (undiluted EPS) and 307.7 cents (basic EPS). That 85 percent is around 260 cents, just for the half year that is. Wow, that sounds huge! Wait, there is more: "The accounting effects of the release of the put option liability will not have any impact on normalised earnings or normalised headline earnings per share." More complicated actuary speak, I must ask friends of mine who are in that field. Yes, I have friends. So, given all this difficulty, a more detailed trading statement for this half will be released mid February next year. We shall see where the market settles this morning.


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