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.
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.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
Small Cap Breakfast
09 Feb 17
GBGI—Schedule One from the integrated provider of international benefits insurance focused on providing tailored insurance products. Looking to raise £32m with admission expected 22 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management Ramsdens Holdings –Schedule One from the financial services provider and retailer, operating in the core business segments of foreign currency exchange, pawnbroking loans, precious metals buying and selling and retailing of second hand and new jewellery. Expected admission to AIM 15 Feb raising circa £15.6m. Expected mkt cap £26.5m.
Ready to dominate TV distribution and prepared for new competition from Iliad
20 Feb 17
TI has released a good set of Q4 results: Revenues were up organically by 0.8% yoy (vs -5.2% in Q1, -4.2% in Q2 and -1.2% in Q3) while the EBITDA (excluding the negative impact of non-recurring items) has increased sharply by 5.9% yoy as in Q3 but vs a decline of 1.7% in H1! EBITDA has clearly benefited from the actions implemented in the “cost recovery plan” that started in Q2 in the Domestic Business and in Q3 in the Brazil Business. In Italy, revenues were up by 2.7% yoy (vs +1% in Q3 and -1.7% in the H1). The solid, structural recovery of Mobile revenues was confirmed, thanks both to the maintenance of market share and the stabilisation of ARPU levels. But the key point is the EBITDA which has grown by 8.4% (vs 7.9% in Q3, +6.9% in Q2 and -5.2% in Q1). Excluding non-recurring restructuring charges, EBITDA would have grown by +4.5% in 2016, with an EBITDA margin of 45.9%, up 1.9ppts on 2015. In Brazil, Q4 revenues were down organically and at constant change by only 1.7% yoy (vs -5.2% in Q3 and -14% in H1)! The main issue is that the total number of subscribers (c.63m with a market share of 26%) was still down by 4.3% vs end 2015. Note, however, that like its competitors the group has seen its prepaid customer base contract sharply in 2016, due to the adoption of a restrictive policy for the disconnection of inactive customers according to Anatel’s new criteria (the Brazilian National Telecommunications Agency). Q4 EBITDA was up by 2.8% yoy (vs +0.5% in Q3 and -10.9% in H1) with the start in Q3 of cost-cutting operations.
Ronez performing, debt facilities agreed
21 Feb 17
Confirming our view that Ronez is a high-quality maiden acquisition, SigmaRoc today announces that trading and operational performance at the verticallyintegrated aggregates business on the Channel Islands has been strong in the first few weeks of trading since the deal completed in early 2017. January sales volumes are reportedly above budget, a healthy order book is in place for the remainder of the quarter, and requisite back-office systems are being developed faster and at lower cost than initially anticipated. Furthermore, SigmaRoc has agreed terms with Santander Bank for a £2m revolving credit facility and is close to agreeing an £18m term facility – once finalized these debt facilities should see SigmaRoc sufficiently capitalized to progress initial projects in management’s pipeline of growth opportunities. We thus continue to believe that Ronez has potential to generate EBITDA to the group of at least £6m pa as efficiencies continue to be unlocked under the new independent ownership structure, providing SigmaRoc with a firm platform from which to leverage more acquisitions and/or organic investments and thus deliver further earnings growth as it progresses its niche buy-and-build strategy.
Prospects electrify; return of cash
07 Dec 16
The sale of the Opus Energy stake to Drax Group is expected to complete during calendar 1Q17, injecting £71m into the balance sheet. With manageable net debt/EBITDA close to 1x, the board expects to return all proceeds to shareholders through a tender offer around the time of prelims, expected June 2017. Telecom Plus’ interims had reported performance in line with mildly tweaked forecasts. While 3 of the "big 6" utility providers committed to price freezes through winter, the implication is for price rises subsequently, from the beginning of TEP’s FY18 (y/e March). The collapse of GB Energy shows that the cheapest utility providers’ business models are unsustainable, which compounds interest from willing and concerned consumers, and re-incentivises the self-employed sales force, as the competitive landscape rebalances. With positive catalysts lining up to lift the share price, we lift our twelve-month target price to 1360p.