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.
Panmure Morning Note 05-12-16
05 Dec 16
Filtronic, the designer and manufacturer of microwave electronics for the wireless telco market, has provided a solid 1H17 trading update. As seen during 1Q17, demand for its new ultra-wide band integrated antennas has been driven by its key customer. Crucially the roll-out provides a reference client and adoption from other clients should be coming in due course. Having said that, programme roll-outs tend to be lumpy in nature and management expect activity to be slowing in the early part of 2H17 until customer concentration is remedied, meaning Filtronic will be exposed to short-term fluctuations in demand.
08 Dec 16
Amino has this morning published a positive trading update, with figures for the year to November 2016 slightly ahead of our forecasts. We upgrade our 2016 estimates modestly, to reflect confirmation of this expected strength and upbeat comments on order backlog. Having recently upgraded our 2017 estimates, we choose to leave these unchanged for now, but will revisit them in February 2017 alongside full FY16 results.
N+1 Singer - Amino Technologies - Trading update confirms strong full year results
08 Dec 16
Amino has released a short trading update for the year to November 2016. The company announced in October that trading had been strong, driven by record August orders and favourable FX movements. The full year performance is now expected to be slightly ahead of revised expectations, with strong cash generation resulting in £6.2m of net cash at the year end. The strategic improvements made in the year have resulted in greater visibility for the business, and a solid order backlog gives us confidence of further strong performance in FY’17 and beyond. Amino has embraced the transition to the cloud and is now well placed to benefit from current market trends. Today’s announcement is the third upgrade this year, leaving the group trading on an FY’17 PER of just 13.6x with a 4% dividend yield. We increase our target price to 191p. Buy.
N+1 Singer - Morning Song 06-12-2016
06 Dec 16
With FY16 volume and revenue already disclosed in the pre-close, the focus in today’s prelims is on PBT (£100.3m versus our £101m) and EPS (96.8p versus our 95.4p). No special dividend triggered this year (none forecast) and DPS is held at 46.8p (N1SE: 48.0p). On end markets, recent commentary is reiterated – the core business is growing, whilst consumer electronics will be subdued in the current year (competitive capacity from Solvay). On currency, there will be a material benefit in the current year (a little more than the £14m to £15m previously indicated), and a further tailwind next year if current rates are maintained (quantum TBC). There is also an investment of £10m today in a minority interest in Magma Global, Victrex’ oil and gas mega programme partner. Although the share price is now close to our TP of 1730p, we feel that there is enough in today’s announcement to retain a positive stance on medium term opportunities with strong cashflow and a special dividend potentially to look forward to in the current year.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.