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Q3 revenues and EBITDAaL, up respectively by 1.8% and 1.4% yoy, were in line with expectations. Capex was down by 7% yoy also in line with the target of a significant reduction in 2023. Orange is still awaiting a ruling regarding the merger of its Spanish activities with MasMovil. However, Christel Heydemann appeared confident that the transaction can be completed in the Q1 2024. For the past year Orange has been in a virtuous circle of FCF growth: we maintain our Buy.
Companies: Orange (ORA:EPA)Orange SA (ORA:PAR)
AlphaValue
Q2 revenues were slightly better than expected, up by 2.6% yoy and lfl while the EBITDA was more in line with expectations, up by 1% yoy and lfl. The only weak point of the release was the expected pronounced decline in the Enterprise EBITDAaL which should only improve from 2024. The clear positive is that, in 2022, the group entered a virtuous circle of vigorous FCF growth for the coming years. We maintain our strong buy on the stock.
Q1 revenues were in line with expectations, up by 1.3% yoy and lfl while the EBITDA was up by 0.5% yoy and capex down by 5%. Note that the EBITDA margin is traditionally lower in the Q1 and the next few quarters will further benefit from the price increases introduced in early 2023. This Q1 confirms that, in 2022, the group entered a virtuous circle of vigorous FCF growth for the coming years. We maintain our Buy on the stock.
The Q4 performance was pretty much in line with our expectations. The key point is that Orange has announced it will increase its dividend floor to 72 euro cents for 2023, and to 75 euro cents for 2024. Very good news indeed in that only three months ago the group had dashed our hopes of a 2022 dividend increase despite the sharp expected rise in Orange’s cash flow in 2022 (+27% yoy). We maintain our Buy on the stock.
Nothing special to say regarding the Q3 performance which was pretty much in line with our expectations, with a reassuring Spain but a modest growth slow down in Africa. The key point is that having confirmed its outlook of EBITDA growth coupled with a capex decline, the group had been expected to increase its dividend. Unfortunately this will not be the case. Since Telcos are yield stocks and shareholders have been overlooked, this news is likely to weigh on the stock in the coming months.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Orange. We currently have 67 research reports from 3 professional analysts.
Gamma’s results for the year ended 31 December are in line with the expectations confirmed in the January trading update. Revenue of £521.7m is 8% ahead of FY22, with gross profit at £267.2m showing the same progress. Adjusted EBITDA grew by 9% and PBT by 10%, although the impact of higher tax rates was seen in the 5% increase in adjusted EPS. Cash generation was strong once again, with 108% adjusted cash conversion. Year-end cash of £134.8m is £42.3m above the year before, even after the £30.5m
Companies: Gamma Communications PLC
Progressive Equity Research
SRT Marine Systems has reported a change of year end from 12-months to March 2024 to 15-months to June 2024, with revenue forecasts extended by three months for both new year ends, and an encouraging operational update. The company is concerned that government related paperwork on two existing CG projects (SEA and ME) may not be completed in time for a March invoice and risks falling into the next quarter. In one jurisdiction where there a number of new project prospects, the company must meet s
Companies: SRT Marine Systems plc
Cavendish
Companies: PHC SRT DCTA
Gamma’s trading update for the year ended 31 December confirms adjusted EBITDA and adjusted EPS in line with market consensus (£113.8m-£116.0m for adj. EBITDA and 74.2-77.4p for adj. EPS). Business is performing well and making progress with the development of its product offering, while Enterprise is winning notable contracts. In Europe, Gamma has made strong financial progress. Year-end cash was £134.8m (FY22: £92.5m) with operating cash conversion over 100%. The statement refers to an update
Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.
Companies: TXG CPX SSIT TXG BVC MWE CHSS
Allenby Capital
CyanConnode provides end-to-end communications platforms that connect Internet of Things (IoT) devices such as smart meters to a utility's billing system. The company is a global player and a market leader in India, where a new government scheme, as set out below, has mandated the procurement of 250m meters by March 2025, a significant market opportunity for CyanConnode.
Companies: CyanConnode Holdings plc
Zeus Capital
CyanConnode’s H1 results position the company to meet our full year forecasts. The company does not need to grow revenue yoy in H2 in order to meet full year estimates. The Indian smart metering programme appears on track, with 98m smart meters already awarded to prime bidders and these orders should soon filter down to competitively well positioned subcontractors such as CyanConnode. These market drivers position the company well to grow revenue 39% in FY24 and 111% in FY25 and for a £1.9m of o
CyanConnode has received a large Letter of Award (LOA) for Omnimesh Cellular Modules (CNICs) from a Thai customer.
Companies: FTC ELIX GEM ADF
Filtronic has reported results in-line with management expectations for H1/24, and now expects to perform ahead of our forecasts for FY24E and FY25E in terms of revenue and profit. We are raising our revenue forecasts for FY24E and FY25E by 14.6% and 6.2% respectively, and our EBITDA forecasts by 85.2% and 28.0% respectively. The increase in expectation is driven by a strong recent acceleration in order flow, including a £7.8m order announced today. In this report we present a detailed review of
Companies: Filtronic plc
18th May 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv
Companies: OHG IDOX IMM SAR SRT NEXS GWMO KIBO
Hybridan
5th September 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obj
Companies: TXG TXG JSG MBH TRX SBTX GAMA EVG
Dish of the day Joiners: No joiners today. Leavers: Egdon Resources has left AIM. What’s cooking in the IPO kitchen?** Announced ITF 12 July: Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health, intends to join the Access Segment of the AQSE Growth Market. Admission delayed. Announced ITF 6 July: Blackpoint Biotech plc, a medical can
Companies: AXL FTC AMS DEMG ALBA BGO BPM CRCL ORCA
CAP-XX Ltd* (CPX.L, 10.0p/£44.2m) H1 update: Revenue growth and positive order book update (09.02.21) | Starcom plc* (STAR.L, 0.85p/£*3.0m) FY update: SaaS revenue provides some visibility (10.02.21) | Location Sciences Group plc* (LSAI.L, 0.525p/£3.1m) FY update: Challenging year, growth in Data & Insights (11.02.21)
Companies: CPX SORT TRAC
Companies: CLBS SCE IGP FTC SRT GDR TRCS ELIX
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