Breakingviews - Corona Capital: Drugmaker’s pick-me-up, Golf M&A

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From Breakingviews: Drugmaker GSK sees a recovery in old-school vaccinations, while COVID-19 turns out to be a handy driver for golf-related dealmaking. Read the latest insights on the pandemic’s corporate and financial fallout

Company logo of pharmaceutical company GlaxoSmithKline is seen at their Stevenage facility, Britain October 26, 2020. REUTERS/Matthew ChildsON TRACK. Like most global companies, drugmaker GSK has endured a turbulent seven months. It’s hard to tell from the company’s full-year earnings guidance, though. Back in February, when Covid-19 was largely confined to China, the $85 billion company said it expected adjusted earnings per share for 2020 to fall between 1% and 4%.

Covid-19 initially left it in the drink: Callaway’s second-quarter year-over-year net sales declined by a third. But the naturally socially distanced game then saw its popularity rise. U.S. rounds last month were up over a quarter versus September 2019, and year-to-date, they’ve risen almost 9%, according to the company. The Dallas-based company projects it will report the best third quarter in its history – with adjusted EBITDA up by over 50%.

Set to launch on Nov. 12, the $500 PS5 will be the Japanese company’s first console in seven years. The head of Sony’s entertainment arm told Reuters that based on pre-orders, demand was “considerable”. An impressive pipeline of exclusive PlayStation titles like “Final Fantasy XVI” gives Sony an advantage over rival Microsoft, which will release its long-awaited console around the same time. At least for Sony shareholders, staying in may not be so bad.

 

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Breakingviews Gold related deal making . I feel. Like my reading comprehension is not working.. what?

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