Back to fundamentals: A cheap play on Djezzy's recovery
Strong recovery, driven by data across all markets and voice at Algeria’s Djezzy, starting 2015e, should lead GT’s consolidated EBITDA to grow at a 2015-18e CAGR of 8%. We expect data to generate 60% of this growth, as a result of the late introduction of 3G in all of GT’s, which has led to pent-up demand for the service. Djezzy should bring in half the data revenue, with the other half coming in as two equal portions from Mobilink and Banglalink. We expect voice recovery for Djezzy to contribute the bulk of growth, on the view that it can recover its lost usage once its 3G coverage expands across the country by the end of 2015e, especially since users did not disconnect their lines. In addition, Djezzy’s inability to compete in the past was mainly due to network limitations as a result of a ban imposed by the Central Bank of Algeria on 2G equipment imports—which we expect will be lifted post-sale of the unit in 4Q14. Our top down view also confirms that Algeria is still a growing market, both on SIM penetration (at 103% in 2013) and on total spending, which remains low relative to peers.
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
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