Edison Investment Research - 4iG (4IG) 4iG - Robust H120, set for continued growth in H220

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Edison Investment Research

Richard Williamson

4iG - Robust H120, set for continued growth in H220

In its H120 results, 4iG reported net revenues of HUF20.2bn, an increase of 39% on H119. EBITDA increased 35% to HUF1.4bn, with EBITDA margins falling slightly from 6.9% to 6.7%. H120 net income rose 34% from H119 to HUF0.8bn, with EPS of HUF8.5 (H119: HUF6.3). As well as the impact of COVID-19, the weaker margins in H120 also reflect increased personnel costs, which almost doubled to HUF3.9bn (H119: HUF2.0bn), with headcount increasing to 644 (FY19: 594). 4iGâ€™s H120 revenues, together with an FY20 order book of HUF20.8bn, mean management continues to hold its 20% revenue growth guidance for FY20 ahead of the seasonally stronger H2. We maintain our estimates.

02/09/2020 7 EN

Underlying

4iG

4iG Nyrt, formerly Freesoft Szoftverfejleszto es Szamitatechnikai Szolgaltato Nyrt is a Hungary-based company engaged in providing software products and consultancy. The Company's activities include development and implementation of specific, custom-made software systems, document management, knowledge management, portal and collaboration applications, complex services for business needs in the areas of implementation, support and consultation, intranet- and Internet-based development, services, graphical and creative design, and consultation, design, development and implementation of mobile business applications, as well as operation, support, outsourcing, application service provision (ASP), application portfolio management (APM), hosting and other services. The Company has three subsidiaries: Axis Consuling 2000 Kft, BankSoft Kft and HUMANsoft Kft.

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HU0000071030 Hungary

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Richard Williamson

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4iG - Robust H120, set for continued growth in H220

4IG: 2 directors

4iG - Executing at pace on its five-year plan

The Rear-View Mirror – EME markets: Polish WIG20 and Hungarian BUX add 11.4% in May, on higher volumes

Games Workshop Group - A notable acceleration in Q225

Altron - Further margin expansion in H125

Sayona Mining - Catching up with majors

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