New Street Research - OI S A (OIBRQN) ... New Street: Brazilian Consolidation: Oi - Wireless sale, but wheres the EBITDA gone?

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New Street Research

Soomit Datta

New Street: Brazilian Consolidation: Oi - Wireless sale, but where's the EBITDA gone?

Oi is set to report FY results on March 25th and, on the back of the 1/25 announcement of binding offers for Oi Infra (auction expected in Q2), for the first time is also set to split out profitability for each of the UPIs.

26/01/2021 7 EN

Underlyings

OI S A

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US6708514012 Mexican Stock Exchange Brazil

Oi S.A. ON

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BROIBRACNOR1 BM&F Bovespa - Securities, Commodities and Futures Exchange Brazil

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New Street Research

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Analysts

Soomit Datta

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New Street: Brazil Telcos: Oi (Neutral, TP: Under review) - New look, post disposals / Debt restructuring, Round II

Oi reported Q3s overnight “clean” for the first time of recent disposals (Wireless, Fibre).

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New Street: Oi (Neutral, TP: under review) Oi Q1 22 - Pro-forma Leverage update: Still High

Oi reported Q1s before the open. Fibre adds continue to slow (which we knew from Anatel data) though we gleaned more details on the revenue implications. Against this difficult backdrop we have also run an update on pro-forma leverage (for Q2 events: Wireless sale, V.tal deconsolidation and the latest Anatel deal) and see consolidated net debt (inc. Anatel liabilities) at over BRL13 billion as of Q1 2022 (and before a potential post-deal close payment on Wireless of up to BRL1.5 billion).

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New Street: Oi (Neutral, TP: under review) Oi Q1 22 - Running the numbers on pro-forma Leverage: Still High

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WISE (Neutral, TP: £8.00 (from £8.30) , +10%) WISE - FY model update: On the Attack; Company call feedback

We spoke to WISE after close on Friday and after the sharp moves down in the stock following FYs. The company is in offense mode having dropped price in April - with more reductions to come we think - which should ultimately support volumes (momentum here being a concern for us for some time) as well as further debit card adoption

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New Street: Brazilian Consolidation: Oi - Wireless sale, but where's the EBITDA gone?

New Street: Brazil Telcos: Oi (Neutral, TP: Under review) - New look, post disposals / Debt restructuring, Round II

New Street: Oi (Neutral, TP: under review) Oi Q1 22 - Pro-forma Leverage update: Still High

New Street: Oi (Neutral, TP: under review) Oi Q1 22 - Running the numbers on pro-forma Leverage: Still High

WISE (Neutral, TP: £8.00 (from £8.30) , +10%) WISE - FY model update: On the Attack; Company call feedback

Evotec - Double Downgrade - Cut to SELL

Bible 1Q24 - Service Provider Infrastructure: Approaching the bottom of the cycle?

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