Equities Update: Carnival, oil, armament, crypto, Telecom Plus

Full steam ahead for Carnival

Mark Crouch, market analyst for eToro , says: “Record bookings, soaring net yields, and packed ships all suggest the tide has firmly turned for Carnival who sailed past guidance estimates, racking up its highest-ever second-quarter operating results. Despite the rising tide of momentum, the share price remains anchored well below its pre-COVID highs.

“Carnival struggled to stay afloat in the pandemic’s wake, and investors may still be seasick from the debt it took on to weather the storm. Despite refinancing efforts, interest expenses remain a drag on earnings. Add in macro jitters and consumer discretionary concerns, and sentiment remained lukewarm for the global cruise operator.

“However, following these results, it’s fair to say the valuation will look much more tempting to investors. With tensions subsiding in the Middle East, this will hopefully open the door to a period of calm waters for the global economy, and if the company continues to chart a course toward stronger margins and lower leverage, Carnival could be ready for a serious rerating.”

Comments: Oil drops amid supply and demand concerns

Nikos Tzabouras, Senior Market Analyst at Tradu.com, commented:

“Oil prices drop as US President Trump announced a ceasefire between Israel and Iran, shifting focus back on unfavourable supply-demand dynamics, which can push crude even lower. Without a major disruption in the flow of oil, the market is well supplied. At the same time, demand risks persist due to the economic headwinds from Trump’s tariffs. However, geopolitical volatility may linger and offer support to oil prices. Questions remain over the viability of the truce, as well as Iran’s nuclear capabilities.”

Crypto gains as Israel-Iran ceasefire announced

Simon Peters, crypto analyst at eToro says: “Crypto saw a boost along with traditional markets on news of an imminent ceasefire between Israel and Iran, with President Trump taking to Truth Social with the announcement.

“Bitcoin popped 2.3% following the post, having already been up 5.6% from the $98,250 low earlier in the day. Altcoins also saw gains, double digits in some cases.

“Looking forward, eyes will still be on the geopolitical situation. The de-escalation and ceasefire has come as a relief to markets, and with the FUD (fear, uncertainty and doubt) being squashed, this could give markets a means to push higher. Either side breaking the terms of the ceasefire however could cause markets to retreat, unwinding the rally we’ve seen over the past 24 hours.

“In addition, outside of geopolitics, markets will be waiting to see what Trump does about imposed tariffs, as the 90-day reciprocal tariff pause is due to expire in the coming weeks. This could also prompt some market volatility, as we have seen previously.”

Telecom Plus shows profit resilience despite revenue dip

Adam Vettese, market analyst for eToro says: “Telecom Plus (trading as Utility Warehouse) continues to defy the odds, delivering profit and customer growth even as falling energy prices put a dent in top-line revenues. What sets the company apart is its unique bundled offering combining energy, broadband, mobile, and insurance under one roof. This multi-service model not only cushions the blow from volatile energy markets, but also deepens customer loyalty and drives recurring revenue. Even with a nearly 10% drop in revenue last year, Telecom Plus managed to grow adjusted pre-tax profit by over 8% and lift its dividend by 13%, underscoring impressive operational discipline and cash generation.

“Customer numbers are still climbing at a double-digit pace, thanks to the company’s word-of-mouth Partner network, which keeps acquisition costs low and growth scalable. The recent acquisition of TalkTalk broadband customers and ‘Which? Recommended’ status for both energy and broadband, further reinforce its competitive edge. However, investors should be mindful of the risks: revenue remains sensitive to energy price swings, and the company faces stiff competition from much larger players. Still, Telecom Plus’s ability to consistently translate customer growth into higher profits and dividends, even in a tough environment, makes it a potentially attractive option for income-focused investors. The outlook remains positive, with management guiding for further profit and customer gains this year. As long as the company continues to execute on its cross-selling and customer service strengths, its growth story looks set to continue, albeit with the usual sector risks in mind.”