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The Q1 figures were in line with our expectations but they confirmed the outlook for 2022 of an EBITDA growth of 2.5/3% and a c.5% decrease in capex.
We still expect the group to enter a virtuous circle of vigorous FCF growth in the coming years allowing steady dividend growth. So we stick to our Strong Buy. Orange deserves to return to the best-in-class group in the telecom sector consistent with its 4.5% dividend yield.
Companies: Orange (ORA:EPA)Orange SA (ORA:PAR)
Orange and MasMovil announced this morning the combination of their operations in Spain.
The combined entity would become a strong second player in Spain with revenues of €7.5bn (vs €12.5bn for Telefonica), EBITDAaL of €2.2bn. It is expected to generate €450m of synergies from the third year post closing onwards.
So, clearly a nice leaving gift for Orange from its future ex-CEO Stephane Richard.
We maintain our Buy on the stock.
Nothing special to say about the Q4 results which were in line with expectations. For the whole year, revenues were up by 0.8% yoy and lfl, while EBITDA was down by 0.5% yoy.
The key point is indeed the outlook for 2022 which is finally as we hoped. EBITDA should grow by 2.5-3%, while capex should decrease by 5%. The time has arrived to see a regular increase in the FCF in the coming years.
We stick to our Strong Buy.
A correct Q2 for Orange but the poor EBITDA outlook for 2021 has been confirmed and the dividend proposed for 2021 will be stable at €0.7. So nothing to wake up the stock.
The group is not expensive compared to its peers, and it offers an enticing c.7.5% dividend yield. Although not for this year, the group could surprise the market by a higher dividend increase than expected in the coming years. We stick to our Strong Buy.
The EBITDAaL was eventually down by 1% yoy but should have grown by 3.2% excluding the COVID-19 impact.
Despite this solid performance and the return to normal of its dividend, the stock is still languishing 20% below its pre-pandemic levels.
At first investors were also quite circumspect about Orange’s determination to keep its new towers company within the scope of the group. But later, Stephane Richard made it clear that Orange won’t go it alone in the towers space.
Companies: Orange SA
A decent Q3 for Orange as the impact of COVID-19 was more limited than in Q2 with only the sharp decline in roaming due to travel restrictions.
The key point of this release is, however, a proposed return to a €0.70 dividend for 2020 (with an interim dividend of €0.40 in December).
We maintain our Strong Buy on the stock with a 7.75% dividend yield for the coming 12 months.
Q2 revenues were down by only 0.4% yoy and the impact of COVID-19 was indeed very limited. This correct Q2 performance reflects a better than expected solid growth in France.
But, more importantly, given an expected stable EBITDA less capex in 2020, Orange will pay a dividend of €0.70 for 2020 (to be confirmed after Q3). So a return to normal which deserves a better price. We maintain our Strong Buy on the stock.
Orange presented yesterday its new strategic plan “Engage 2025”. The stock was, however, down by 4% yesterday while the group refused to commit to increasing its dividends over the period.
We maintain, however, our opinion at Buy on the stock with a significant upside.
Q2 revenues were up by 0.7% yoy and lfl, a satisfactory number and better than the zero growth recorded in Q1. The correct Q2 performance reflects this time a very solid resilience in France (+0.4%) and an acceleration in Africa & Middle East (+5.8%), while Spain was disappointing with revenues down by 1.6% due to a highly promotional market.
EBITDA has grown by 2% yoy and lfl and was slightly above expectations.
We maintain our Buy on the stock.
Q4 revenues grew organically by 1.4%, a satisfactory number in line with the growth recorded in H1 (+1.7%) after a weaker Q3 (+0.6% yoy). The 2.4% growth recorded in Spain is quite good as Orange had seen its impressive growth trend of 2017 slowing in the two previous quarters (+0.5% in Q3 vs. +1.8% in Q2, +4.3% in Q1 and +7.1% for the whole year 2017). In France, Q4 revenues were however only flat yoy and that is a little bit disappointing.
Q4 EBITDA has grown by 1.4% yoy but by 2.6% for the t
A good Q3 performance despite a slowdown in growth in Spain. Quarter after quarter, the group is confirming it has crossed an inflection point in terms of revenue and EBITDA growth.
Orange’s dividend has been raised to €0.65 in 2017 and looks to be €0.7 for 2018. We believe that the prospect of a regular rise in the dividend in the coming years, if it officially committed to this, would be likely to make Orange’s stock break the €15 level.
A good Q2 performance despite a less impressive growth in Spain. Quarter after quarter, the group is confirming it has crossed an inflection point in terms of revenue and EBITDA growth. Full-year EBITDA should grow by 3 to 4% yoy… and with capex which should decrease from 2019, the dividend could be better than expected next year.
Q1 revenues grew organically by 2% yoy, as in the previous quarter (+1.8% yoy): this is a good quarterly performance due partially to a recovery in the Africa & Middle East segment. All in all, it confirms the good trend recorded in the previous quarters. In France, revenues were up by 2.1% yoy (for the fourth time in a row), benefiting from the impact of digital media apps available since October, while the fixed broadband services have continued to grow steadily. The great story in Spain conti
We maintain our Buy on the stock with a significant upside. This release is once again reassuring and we still believe the group does not deserve such a discount in terms of EV/EBITDA (at only 5x vs a little bit more than 6x on average for its peers).
The dividend yield is 4.75% for 2018 and 5.1% for 2019… And Orange is a slight growth story in a no-growth sector with absolutely no risk on the dividend payment.
Q3 revenues have grown organically by 0.9% yoy (vs +1.4% in Q2 and +0.8% in Q1). This is a quite as expected performance, even if it is in line with the market’s expectations. Note it includes an impact of the “Roam like at home” of around 1%. All in all, it confirms the good trend recorded in the previous quarters (remember, revenues had increased by 0.3% during H1 16 and by 0.9% in H2 16). In France, revenues were up by 0.2% yoy (for the second time in a row since 2009), the impact of roaming
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A correct release globally in line with expectations (slight slowdown in revenue growth in Q4 but a slightly better than expected FCF for the full year) but the outlook given by management for 2022/23 is quite cautious (this is the upper range of the guidance which corresponds to our estimates).
We maintain our opinion at Buy. Note, however, the CEO Nick Read is rather under fire after missing opportunities in Italy (Iliad), Spain (Orange-Masmovil merger) and with Vantage.
Companies: Vodafone Group Plc
Double digit Q1 growth in revenue (+12%), EBITDA (+15%) and EPS (+12%) represents a creditable performance given the wider market backdrop for MTI Wireless Edge Ltd, the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors. On a divisional basis Distribution & Consultation (MTI Summit) showed the best growth (+40% to $4.2m) and included an initial contribution from P.S.K WIND Technologies. Water Solutions (Mottech) was up slightly and Ante
Companies: MTI Wireless Edge Ltd
e client of Hybridan LLP
Dish of the day
BSF Enterprise. Following the successful reverse takeover of 3D Bio-Tissues Limited, a tissue engineering business based in Newcastle, UK, the Company announces admission of the enlarged group to the standard segment of the Official List and initiation of trading on the Main Market under the ticker ' BSFA '. The Admission follows a placing which raised £1.75m at a placing price of 7.37 pence per share.
No Leavers Today.
What’s cooking in
Companies: VANL TYM ACSO CCS FNTL SOLI TRAC ECK KIBO OSI
Gamma has today issued a Q1 trading update, coinciding with its AGM. The
update confirms that the year has started positively, with revenue growth
across all operating segments. Management expects this positive
momentum to continue throughout the year, with full-year adjusted
EBITDA and adjusted EPS being in the upper half of market estimates. We
have tweaked our FY22 revenue estimate down (£495m to £488m) but left
our earnings figures intact.
Companies: Gamma Communications PLC
Companies: GHH IGP IOM KBT QXT SRT
Companies: ARB FNX PEB QXT TRI
Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
Companies: ANX IBPO CYAN SOM EQT AFM
Apple has reported another strong financial performance with a strong growth in subscriptions. Home and accessories, wearables, Mac, and iPhone, had a particularly strong performance over the past year. With Apple silicon, leaps and bounds have been seen in efficiency and performance. Last month Apple announced another breakthrough with yet another powerful chip for a PC named M1 Ultra. The company has also expanded its iPhone offerings, adding up two very pretty green finishes to the iPhone 13.
Companies: APPLE (AAPL:NYSE)Apple Inc. (AAPL:NAS)