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ASX Market Update: Index climbs as Fortescue falls despite jump in profit | August 28, 2024

ASX News, Market Summary
28 August 2024 13:57 (AEST)

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The ASX200 has been down around 0.4% in early afternoon trade.

Reporting season continues and JP Morgan says many of the results do not justify the high price to earnings ratios of ASX200 companies.

Staples are up around 1%, followed by Real Estate around 0.3%. Telecommunication has been the biggest loser down 1.6% followed by Materials and Energy – both down around 1.1%.

Company News

Fortescue Ltd (ASX: FMG) has been trading down around 1.7% after unveiling FY24 results. Revenue grew 8%, and underlying earnings before costs was up 7%.

The company declared a final year dividend of 89 cents per share, and the FY24 full year dividend was a 13% increase year over year. This equates to a grossed-up dividend yield of around 6.8%.

Fortescue has been trading at around $18.32

Tabcorp (ASX:TAH) has been behind the eight ball and down more than 12% in early afternoon trade. FY24 results revealed revenue was down 3.9% year on year to $2.34 billion and its Earnings before costs fell 18.7% to $317.7 million.

The company also booked a $1.4 billion impairment for the year due to fewer people gambling smaller amounts.

Tabcorp has been trading around 50 cents.

EML Payments (ASX:EML) has been down more 5.5% on FY24 results.

The company achieved an 18% increase in revenue to $217 million and a 34% uptick in underlying earnings before costs to $49 million. The result did not meet investor’s expectations.

EML Payments has been trading at around 73 cents.

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