ADP’s results were below market expectations. While the group managed its opex well, net income was impacted by higher impairments, a more prominant loss from equity-accounted assets, and higher financial expenses due to an increase in gross debt. The group will not pay any dividend this year and, most likely, not even next year. The group is also reviewing its investment plans and needs flexibility to manage its expenditures; thus, we don’t expect a new regulated agreement anytime soon.
18 Feb 2021
FY20: crash landing of profits
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FY20: crash landing of profits
- Published:
18 Feb 2021 -
Author:
Sejal Varshney -
Pages:
3
ADP’s results were below market expectations. While the group managed its opex well, net income was impacted by higher impairments, a more prominant loss from equity-accounted assets, and higher financial expenses due to an increase in gross debt. The group will not pay any dividend this year and, most likely, not even next year. The group is also reviewing its investment plans and needs flexibility to manage its expenditures; thus, we don’t expect a new regulated agreement anytime soon.