Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ATLANTIA SPA. We currently have 10 research reports from 1 professional analysts.
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Good set of 9m results.
14 Nov 16
Results Total group revenue reached €4,129m, up 3% during the first nine months, supported by a strong performance in Toll roads (+6%) and airports (+12%). Group EBITDA was up 6%, at €2,640m, while net profit grew 8%, at €813m. EBIT was down by 5%, mostly reflecting a €149m charge related to the adjustment to the present value of the provisions following the significant decline in the related interest rates during the period. Operating cash flow totalled €1,836m, up 14% on a reported basis and 6% on a lfl basis. Net attributable profit was up 8%, as 2015 financial expenses included €185m of negative one-offs which eased the comparison. At 30 September, net debt stood at €10,189m (down c.€200m ytd) and cash amounted to €4,927m. Capex reached €998m in the period, in line with last year’s (€999m). Guidance The outlook remains unchanged. The company expects consolidated gross operating profit to register an “overall improvement”. Recent developments The company confirmed the acquisition of the Nice airport system in the South of France, which was already announced on 9 November. The acquisition of the 64% stake has been made through the Azzurra Aeroporti Srl SPV, 65% owned by Atlantia. The consideration amounts to c.€1.3bn and has been financed with a five-year acquisition financing facility of €653m obtained by the SPV.
International acceleration, sale of a 15% stake in ASPI
20 Oct 16
Atlantia’s CEO, Giovanni Castellucci, was in London to give a strategy update and present the new 2020 targets. New structure The CEO presented the group’s new structure which, in 2017, will result in an organisation with four main divisions focusing on the following businesses: Italian motorways, led by Autostrade per l’Italia (ASPI), which will have the role of operating parent and will continue to hold the controlling interests of the group’s other Italian motorway operators. Overseas motorways, which today includes the investments in Grupo Costanera and Los Lagos in Chile, Atlantia Bertin Concessoes in Brazil and Stalexport in Poland, control of which will be transferred from Autostrade per l’Italia to Atlantia. Airports, led by Aeroporti di Roma (ADR) and Aéroports de la Côte d’Azur (ACA), following the French government’s provisional selection of the consortium in which Atlantia has a 75% stake as the operator’s purchaser, following the government’s decision to proceed with its privatisation. Other related businesses, which, in addition to Pavimental and Spea Engineering, will also include Telepass and ETC, control of which will be transferred from Autostrade per l’Italia to Atlantia, with the aim of boosting promotion of the group’s automated payment solutions for transport in international markets. Source: Company’s presentation.
July-August 2016 traffic on Italian networks confirms H1 16 trend
07 Sep 16
July-August 2016 traffic on Italian networks operated by Atlantia was up by 2.9% (km travelled vs July-August 2015) of which LV +2.9% and HV +2.3%. January-August 2016 traffic up is 3.5% vs + 3.0% recorded in the 12 months of 2015.
H1 16 positive traffic trend except in Brazil, Q2 16 traffic slowdown, negative forex effect
05 Aug 16
Atlantia’s Italian motorways network: traffic +3.8% (+3% after stripping out the leap year effect); LV +3.6%; HV +5.1%). Annual toll increase was 1.09% from 01/01/2016. Revenue +1% (+3% lfl) and EBITDA +1% (+3% lfl). The group’s overseas motorways network: traffic +1.9% overall (+1.4% after stripping out the leap year effect) with +5.6% in Chile, +12.1% in Poland and -2.4% in Brazil. Revenue (€255m; -9%) and EBITDA (€188m; -10%; +4% at cc) are down due to the poor performance in Brazil’s EBITDA (€76m; -€32m; -30%; -11% at cc) due to maintenance and resurfacing work, a 2.4% reduction in traffic and the depreciation in the Brazilian real. Chile and Poland’s EBITDA were up by a respective +14% and +25% (at cc +23% and + 13% respectively). Aeroporti di Roma: traffic +2.8% (+2.3% after stripping out the leap year effect). Revenue (€399m) and EBITDA (€230m) were up 8% translating growth in traffic and tariff increases. Consolidated revenue (€2,566m; +€71m) was up +3% despite the negative forex impact of €40m. Consolidated EBITDA (€1,578m; €+60m) was up +4% (+€81m but +5% lfl). H1 16 reported EBIT and net profit are barely comparable to H1 15 due to the provisions for the repair and replacement of motorway infrastructure and the provisions for the refurbishment of airport infrastructure which reflect charges of €112m following an adjustment to the present value of the provisions due to the significant decline in the related interest rates (vs H1 15 income of €67m due to increases in the matching interest rates). D&A and impairments were broadly in line with H1 15. Consolidated EBIT €965m is down by €110m (-10%) after provisions of €159m). Financial expenses are down by €195m to €251m because they don’t reflect the complex non-cash financial expenses and non-recurrent financial expenses in H1 15. Reported net attributable profit (€413m) is up €36m (10%; +5% lfl). Capex was €566m (-14%), of which €311m in Italian motorways (-€134m due to the opening of Variante di Calico). Group net debt at 30/06/2016: €10,191m (+€104m compared with 31/12/2015) Atlantia’s management expects an overall improvement in the consolidated operating result for the current year.
H1 16 traffic release translates slowdown of traffic in Q2 16
06 Jul 16
- H1 16 Atlantia Italian motorways network: traffic +3.7% and c.3.2% lfl after stripping out the leap year effect. Q1 16 traffic was up +7.2% and +4.2% lfl - the group’s overseas motorways traffic numbers not yet released - Aeroporti di Roma: passenger traffic +2.8% (vs 7.2% in H1 15) and c.+2.3% lfl after stripping out the leap year effect. Q1 16 traffic was up +4%
Q1 16 toll road traffic trend higher than expected, slowdown in airport traffic growth
09 May 16
Q1 16 performance is good with a tangible balance between the activities EBITDA €721m (+39m; +5% reported and lfl) EBIT €1,185m (+€64m; + 4%) Reported net profit attributable to parent company €164m, + €132m and + 9% lfl
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
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.
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
Emerging from the clouds
16 Feb 17
Rolls-Royce’s underlying performance in FY16 was ahead of both its own and market expectations. Media focus on the non-cash £4.4bn headline FX loss is missing what looks to be the basis for optimism. As the civil model starts to move from investment in engines for the A350 and A330neo into the aftermarket delivery phase over the remainder of the decade, we think cash flow is likely to improve, particularly if supported by an eventual recovery in Marine.
15 Feb 17
At the current market capitalisation of £29m, we believe the shares are significantly undervalued. We estimate that the highly profitable Maritime business is alone worth at least £40m. With net cash of £9m at end-2016, this implies that the market is currently ascribing a combined negative value of £17m to the rest of the group, which together account for c.54% of group revenues. This is very harsh given the management actions to transform TP Group to a profit-driven Tier 2 specialist services and engineering company are bearing fruits across the divisions. TPG Managed Solutions is expected to more than double its profits in 2017, while TPG Engineering and Design & Technology are on course to deliver sustainable profits from 2019. Even if we ascribe zero value to Engineering, Design & Technology and Managed Solutions, the shares are worth 9.5p a share, a 38% upside from the current share price. BUY.
Taking the bull by the horns
15 Feb 17
Avon Rubber announced this morning that CEO Rob Rennie has left and been replaced with Paul McDonald, formerly managing director of Avon’s Dairy division. This news comes as a surprise and is likely to raise some questions over the CEO and CFO transition, with the CEO only being in post for just over a year. However, the group has appointed an executive already known to many who have followed the business, and as such should be seen as a good appointment with a track record of decisiveness and getting things done.