Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Investing.com -- Groupe ADP (EPA:ADP) stock pared earlier losses to trade down just 0.3% after the Paris airport operator issued a profit warning for the first half of 2025, citing foreign exchange impacts and the timing of a French corporate tax surcharge.
The company warned of a €90-110 million hit from currency weakness, with approximately half coming from the accelerated depreciation of the Turkish Lira affecting its TAV operations. The remainder stems from its 46% stake in India’s GMR, where euro-denominated convertible bonds have increased in value against the Indian Rupee, triggering loss recognition in ADP’s accounts.
Additionally, ADP expects a €60-70 million charge in the first half from the French corporate tax surcharge, representing a higher proportion of the anticipated €110-120 million annual charge due to the computation method.
Despite these headwinds, the company plans to protect its dividend by adjusting its distribution policy to exclude the non-cash items from its 60% payout ratio calculation, potentially providing support for the stock.
"We expect a limited share price impact from ADP’s profit warning on 1H/FY25 earnings published yesterday after the close. Yet, it puts the light on softer TRY/INR YTD, and the ensuing impact of lower € value for ADP’s stakes in TAV and GMR," Morgan Stanley (NYSE:MS) analysts noted.
The profit warning primarily involves non-cash items, with the foreign exchange impacts at TAV and GMR not affecting dividend upstreaming to the parent company, which may explain the stock’s recovery from initial losses.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.