Frequentis FY 19 - Results in line, order intake up in 1Q and continuing so far
Frequentis' FY 19 results increased across the board and were in line with RCBe on EBITDA but beat consensus expectations. Down the lines, the beat was less pronounced and net profit slightly undershot forecasts due to higher minorities. Operating profitability exceeded expectations both for the full year as well as 2H (EBIT margin: 12.3% vs. RCBe 12.1% and consensus 11.6%). It was mainly the smaller Public Safety & Transport (PS&T) segment, which accounted for 30% of revenues that drove the good EBITDA performance and profitability, while Air Traffic Management (ATM) did not live up to the 2018 results bar by a small margin in terms of EBIT and profitability. 2H 19 EBIT was flat yoy at EUR 21.1 mn and net profit decreased by 5% due to a weaker financial result in addition to higher minorities. Order intake was up 9% yoy, with a FY book to bill of 1.10x and a 1.17x in 2H 19. Management reckons that the order backlog of EUR 391.5 mn is to generate revenues of EUR 215 mn in FY 20e. Book-to-bill for ATM stood at 1.06x (1.01x in 2018) and PS&T's book-to-bill decreased slightly to 1.19x (1.22x).Frequentis AG is an Austria-based supplier of communications and information systems, diversifying its activities into two business segments: ATM (Air Traffic Management) business segment, which includes ATM Civil, including Information Management, and Defense business fields, and PST (Public Safety & Transport) business segment, which includes Public Safety, Public Transport and Maritime business fields. As of December 31, 2010, the Company had seven wholly owned subsidiaries in the area of Sales & Operations, four wholly owned subsidiaries and one majority owned subsidiary, as well as one affiliate, APUS Software GmbH, in the area of Software, and two wholly owned, one majority owned, one minority owned, as well as one affiliate, 3T Communications AG, in the area of Services. The Company's subsidiaries are located in the United States, the United Kingdom, Canada, Australia, Germany, Singapore, Slovak Republic, Romania, and the Czech Republic.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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