Edison Investment Research - 4iG (4IG) 4iG - Strong Q4 helps 4iG beat FY20 estimates

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Edison Investment Research

Richard Williamson

4iG - Strong Q4 helps 4iG beat FY20 estimates

After its seasonally strong final quarter, 4iG reported FY20 net revenues of HUF57.3bn, a 39% increase on FY19 and 6% ahead of our upgraded estimates following 4iG’s Q3 report. FY20 EBITDA rose 24% to HUF5.1bn, up 24% y-o-y, with a higher than expected margin of 8.8% (Edison estimate 8.1%). PAT rose 21% to HUF3.4bn. 4iG reported minimal financial impact from COVID-19, with some segments of its business even benefiting (XaaS, security, home working). The group completed four transactions in H220, with a further deal announced post period end, which, together, are expected to add c HUF10bn of revenues to FY21 and HUF3.5bn+ of EBITDA. However, with the HDT deal yet to complete and without firm figures, we will wait until the full results to update our estimates. 4iG has also flagged a potential HUF15bn bond issue in FY21 to fund future M&A.

04/03/2021 5 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

Provider

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 Q4 helps 4iG beat FY20 estimates

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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