Discovery posts strong new business growth but spending hits HEPS
FINANCIAL services group Discovery posted strong growth in new business in the financial year to June 30, but a 73% increase in spending on new initiatives put a dent in short-term profit.Headline earnings per share fell 35% from a year earlier to 571.1c, but normalised HEPS were up 1% at 676.3c.New business at existing businesses increased 20% to R13.3bn, and operating profit at those businesses rose 15% to R7.2bn.READ THIS: Japan Vitality deal boosts Discovery’s expansion in AsiaDiscovery said accelerating growth in operating profit — the second-half increase of 14% was double the first half’s 7% — was driven largely by Discovery Health and Discovery Life, where operating profit rose 12% and 18%year on year respectively in the second half.The R823m spent on new initiatives was funded by debt and a rights issue, and amounted to 13% of earnings, Discovery said in Tuesday’s results release.In SA, the company said, the performance exceeded expectations in the face of high healthcare ...
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