Edison Investment Research - 4iG (4IG) 4iG - Strong Q320 results, estimates raised

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Edison Investment Research

Richard Williamson

4iG - Strong Q320 results, estimates raised

In its Q320 update, 4iG reported nine-month (9m) net revenues of HUF33.5bn, a 34% y-o-y increase. EBITDA increased 13% to HUF2.8bn, with EBITDA margins climbing to 10.8% in Q320 from 6.7% in H120. Net income for the 9m rose 11% y-o-y to HUF1.9bn. 4iG reported a continuing robust operational performance, with a limited effect from COVID-19, announcing two acquisitions and a satellite joint venture during the period and a third acquisition after period-end. Management reiterated its confidence in achieving its 20% revenue growth guidance for FY20 ahead of its seasonally strongest quarter, with a HUF18.2bn order book for 2020 (19 November) on top of 9M20 revenues of HUF33.5bn (total HUF51.7bn). We have raised our revenue estimate for FY20 by 10% and FY21 by 5%.

01/12/2020 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 - Strong Q320 results, estimates raised

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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