Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on PROXIMUS. We currently have 3 research reports from 1 professional analysts.
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More competitive to face Liberty
03 Nov 16
Q3 revenues were down by 1.4% yoy. This is indeed a good performance because if we exclude the expected sharp 9% drop in BICS revenues (the International Carrier division combined with that of the African telco MTN) due to lower voice traffic to African regions, domestic revenues have grown by 1.5%, a slightly better performance than the 0.3% growth recorded in H1. Like in H1, the good news of the release is that, for Q3, the group managed to sustain solid EBITDA growth, up by 5.5% yoy (vs 4% in Q1) for Domestic, and growing by 4.7% for the group (vs +2.1% in H1). The on-going restructuring is bearing the first fruit. Thus management feels comfortable in raising its full-year guidance to growth of 3% to 4% for EBITDA.
A good Q2 excluding the African business of BICS
29 Jul 16
Q2 revenues were down by 3% yoy. It is indeed a good performance even if it was expected (revenues were down by 3.1% in Q1) because, if we exclude the sharp 12.7% drop in BICS revenues (the International Carrier division combined with that of the African telco MTN) due to lower voice traffic to African regions, domestic revenues grew indeed by 0.7% yoy (they were stable in Q1). But, like in Q1, the good news of the release is that, for Q2, the group managed to sustain solid EBITDA growth, up by 4.1% yoy (vs 3.8% in Q1) for Domestic, and growing by 1.7% for the group. Management reconfirmed its full-year guidance, with 2016 Domestic revenue and group EBITDA expected to grow slightly.
Improvement in cost efficiency
04 May 16
Q1 revenues were down by 3.1% yoy but this is due to the sharp 10.9% drop in BICS revenues. BICS is the International Carrier division combined with that of the African telco MTN and the drop is due to lower voice traffic to African regions. Domestic revenues were indeed stable yoy. But the good news of the release is that for Q1, the group managed to sustain solid EBITDA growth, up by 3.8% for Domestic, and growing by 2.5% for the group. This was driven by a continued growth in Fixed and Mobile Services, delivering a stronger direct margin (+14% yoy!). The sustained progress in EBITDA comes also from consistently executing on the “Fit for Growth” strategy, enhancing the customer experience and focusing on value-accretive customer growth (the Domestic operating expenses were reduced by 0.9% yoy during Q1 thanks to efficiency gains). Management reconfirmed itsfull-year guidance, with 2016 Domestic revenue and group EBITDA expected to grow slightly. The EBITDA objective will be supported by the progress on efforts to reduce costs. In this context, the CEO, Dominique Leroy, has informed that the workers union has approved Proximus’s proposal for a voluntary early leaving plan prior to retirement, which will come into force on 1 July 2016.
FY 2016 results confirm further strong delivery
21 Mar 17
Gamma’s FY 2016 revenues, Adjusted EBITDA and Adjusted EPS numbers were a touch ahead of our estimates. We make small upward adjustments to forecasts for all three years of our forecast horizon reflecting that performance. Gamma is capitalising on its position as a nimble player in an attractive marketplace. It made strong progress in 2016 as Voice over IP technology drove uptake of SIP Trunking and Hosted PBX services - both areas where Gamma has strong platforms. In addition, data services reflected Gamma’s investment in its network, channel partner numbers increased again and the indirect business accordingly showed strong revenue growth. The Direct Business also produced good growth and won some significant new contracts. The outlook statement is ’enthusiastic’ about the current year and comments that the Board ‘remains open to suitable M&A opportunities and areas for strategic capital investment’. Overall, an optimistic picture, in our view.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
20 Mar 17
Despite the University of Michigan releasing its preliminary reading of March consumer sentiment on Friday, which suggested US personal finance confidence rising again, this time to a 17-year high as the Nation effectively achieves full employment, US equities remained narrowly rangebound. Industrial production data also released held steady in February which, although slightly below market consensus, still provided underlying confidence in continued growth amid a pickup in manufacturing and mining activity. But this was not enough given receipt of a slightly less hawkish tenor from the Fed. The problem appears to be that investors have heard Trump ‘talk-the-talk’ but, as was seen with the latest judges’ ruling against his travel ban, they are not yet convinced he can ‘walk-the-walk’. Thursday’s White House budget proposals, which focussed on cutting funding for projects deemed to have regional benefits, in order to increase funding to those with national scope, compounded this with some commentators suggesting the new programs will be less effective than existing ones. The President’s joint address to Congress, calling for legislation to procure US$1tr to rebuild the country’s tired infrastructure, for example, makes for great soundbites but Congressional scrutiny, particularly from fiscal conservatives who are reluctant to back massive federal spending, looks set be arduous to say the least. So while the wall of money being liberated globally from bond market rout provides plenty of back pressure, investors appear to be waiting for a new injection of confidence before being prepared to push already heady equity valuations one further step further. Traders also appeared unimpressed by U.S. Treasury Secretary Steven Mnuchin rebuffing a concerted push by world finance chiefs to disavow protectionism, fanning fears that the Trump administration's pursuit of an ‘America First’ policy could ignite global trade conflicts. With many officials suggesting they departed the G-20 meeting confused about where the new administration will ultimately land on trade policy, US equities ended mixed with only the NASDAQ able to put on a minute gain helped by Adobe, while the other two principal US indices were knocked by continued selling of health-care stocks, in particular Amgen which had released disappointing results from a cholesterol drug study. The cautionary mood spread to Asia, where only the Hang Seng put on a modest gain while the region’s other indices stayed in the red with the Nikkei being closed for a holiday. Important macro data from London today is limited to the Rightmove House Price Index for February which was released at midnight at +2.3% y-o-y, in line with expectations, while the EU produces Q4 Labour Costs; the US provides its Chicago Fed National Activity Index and later the Fed’s Charles Evans is due to make a speech. UK corporates due to report today include Volution Group (FAN.L), Satellite Solutions Worldwide (SAT.L), Frenkel Topping Group (FEN.L), Phoenix Group (PHNX.L) and Finsbury Food Group (FIF.L). Equities in London as seen similarly lacklustre this morning, with the FTSE-100 see moving 5 to 10 down in early trading.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
Panmure Morning Note 04-05-2016
04 May 16
As expected Spirent’s Q1 trading update was of the ‘all in line’ variety – this is despite a beat to our Q1 estimates. The highlights are cash generation, performance in the Networks division and that all important reaffirmation of the FY outlook. We have long commented that the macro backdrop remains poor but that Spirent is a story of getting its house in order and thus achieving better execution. These results still signal that the market remains tough, notably (i) the “broadly in line” order book, (ii) spotty geographic performance, and (iii) poor performance at the Wireless division. We reiterate that our general investment view (Buy when others are frightened) has captured the zeitgeist – Spirent enjoys an attractive valuation (2016E EV/Sales 1.3x, 8.5x EV/EBITDA). Our target price is 120p. Buy.