May 14, 2019 / 5:48 AM / a month ago

CORRECTED-UPDATE 1-Innogy's retail woes continue as Q1 profit drops a third

(Corrects figures in first and seconmd bullet points and penultimate paragraph)

* Loses 103,000 clients in Britain in Q1

* Adds 14,000 customers in Q1 on group level

* Q1 adj EBIT down 22 pct at 964 mln eur

FRANKFURT, May 14 (Reuters) - German energy group Innogy , which is being broken up by parent RWE and rival E.ON, on Tuesday said operating profit fell more than a fifth in the first quarter as it continued to lose customers in Britain.

First-quarter adjusted earnings before interest and tax (EBIT) fell 22 percent to 964 million euros ($1.08 billion), lower than the 976 million euro average forecast in a Reuters poll of banks and brokerages.

A mix of tough competition and regulatory intervention has made life difficult for established utilities in Britain, causing E.ON and Centrica to warn of the deteriorating market conditions a day earlier.

“In the company’s UK retail business ... the persistently poor market environment resulted in a decline in customer numbers,” Innogy said on Tuesday, keeping its 2019 outlook.

In Britain, Innogy lost 103,000 customers in the first three months. On a group level, however, the company won 14,000 customers in the period, driven by its home market Germany, where it added clients on a net basis.

A part of the breakup deal, Innogy’s renewable business will go to parent RWE while its network and retail business will be integrated by E.ON, a deal that is expected to close in the second half of the year. ($1 = 0.8901 euros) (Reporting by Christoph Steitz Editing by Michelle Martin and David Goodman)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below