Report
EUR 9.28 For Business Accounts Only

H1 17A results: Adjusted EBITDA (+22% y/y) still beats our estimate

​H1 17A results: Adjusted EBITDA (+22% y/y) still beats our estimate by +2.1% after fully excluding positive one-offs (of KES 3.4bn).

  • ​Revenues are largely in line with our estimates, but fixed line data positively surprises (+19.5% vs. AC) 
  • Reported EBITDA was uplift by a one-off reversal of a provision as legal settlement costs were over provisioned.
  • Adjusted EPS grew +14% y/y, but missed our estimates (-9.9% vs. AC). The miss is due to a hike in depreciation expenses (+21% y/y) following 4G rollout (which began in H2 15A).
  • Management has revised full-year guidance upwards: new FY 17e EBITDA guidance stands at KES 94-97bn (KES +5bn vs. previous guidance), while CAPEX guidance was upped to KES 34-35bn (KES +2bn).

Underlying
SAFARICOM

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

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