Discovery shares close up 3.4% on positive trading statement

Discovery [JSE:DSY] said late on Thursday it expects undiluted headline earnings per share to increase by up to 35% for the year to end June 2018.

The share price of the integrated financial services group jumped more than 5% on the news, closing up 3.41% at R173 at close of the local bourse.

Discovery, which specialises in health insurance, life assurance, wellness, investments and savings products, short-term insurance and credit card products, said in a trade update that it expects HEPS (undiluted) to increase in the range of 30% to 35%, to between 888 cents and 922c.

Earnings per share (undiluted) are expected to increase in the range of 25% to 30%, to between 855c and 889c.

Discovery further said it expects normalised profit from operations to jump by between 15% and 20% in the period under review to between R8.1bn and R8.5bn, from R7bn in the previous comparable period.

Normalised headline earnings per share (undiluted) are expected to increase in the range of 13% to 18%, to between 816c and 852c, from 722.2c before.

Discovery’s results for the year are due to be released on September 4, 2018.