Discovery Group: Significant decline in net profit

Discovery Limited, a South African group specialising in insurance and digital banking, is expecting its 2019/2020 net income, excluding exceptional income, to fall by 70 to 90%.

This decline in net income is explained by the creation of a provision of 3.3 billion ZAR (192.75 million USD) related to the coronavirus pandemic. Following this announcement, Discovery's share price initially declined by 6.8% and finally settled at -3.22%.

It should be noted that on 9 June 2020, the British fund management company, Baillie Gifford, increased its capital stake in Discovery. It became the 4th investor of the group with 32.14 million USD worth of shares.

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