Discovery CEO on FY earnings, investment opportunities amid the COVID-19 crisis
Insurance group Discovery is bracing for more tough times ahead, as its share price fell by more than 3 per cent today. The group reported a 94 per cent drop in earnings, while also revealing a more than R2 billion spend on new business initiatives. Due to uncertainty in the market, no dividend has been declared. Discovery CEO, Adrian Gore joins CNBC Africa for more.
Wed, 16 Sep 2020 16:15:39 GMT
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AI Generated Summary
- Discovery faces a 94% drop in earnings and complexities in managing through the COVID-19 crisis
- Most of Discovery's workforce is currently working from home, with a cautious approach to returning to offices
- Significant investment in new initiatives, including the launch of Discovery's bank, raises concerns but shows promising results
Insurance giant Discovery has faced a challenging year, with a 94% drop in earnings and a 3% fall in share price. The unprecedented global health crisis caused by the COVID-19 pandemic has not only affected individual health but also resulted in significant economic implications. In a recent interview with CNBC Africa, Discovery CEO Adrian Gore discussed the complexities of managing through the crisis and the company's strategies for the future. Despite the difficulties, Gore expressed optimism about the organization's performance and resilience. With the majority of its workforce currently working from home, Discovery is cautious about bringing employees back to the office, prioritizing safety and productivity. The company's significant investment in new initiatives, including the launch of their bank, has raised concerns among shareholders. However, Gore reassured investors that the spend on the bank was in line with the business plan and has shown promising results. He emphasized the importance of seizing opportunities during crises and highlighted the growth potential for Discovery, particularly in the financial services sector. Looking ahead, Gore emphasized the need for confidence, investment, and support for key sectors to drive economic recovery. While acknowledging the challenges faced in comparison to countries like China, Gore remained hopeful about South Africa's potential for growth and recovery with the right leadership and strategy in place.
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