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MÁSMÓVIL: 1Q’20 RESULTS (ANÁLISIS BANCO SABADELL)

1Q'20 vs. 1Q'19 Results
Sales: € 445.0 M (+16.2% vs. +14.9% BS(e) and +16.7% consensus);
EBITDA: € 134.0 M (+27.6% vs. +24.8% BS(e) and +26.7% consensus);

The results were solid, showing sharp growth and a small impact from Covid-19, which allows the company to reiterate its guidance’20-21. 1Q’20 sales grew +16% to € 445 M, with Services revenues rising by +20% to € 401 M thanks to an increase in the number of broadband clients (+119,000) and post-paid mobile clients (+254,000) and despite the suspension of portability due to Covid-19. 1Q’20 EBITDA stood at € 134 M (+27%), with the margin coming in at 30% (vs. 27% in 1Q’19). As regards the guidance: for 2020, the company forecasts between € 570 M and € 600 M of EBITDA (vs. € 591 M BS(e) and consensus), whereas for 2021, EBITDA would range from € 670 M to € 700 M (€ 692 M BS(e) and consensus).
We highlight the company’s capacity to keep robust growth rates even in the adverse and uncertain environment we are facing. In this regard, and as for the impact from Covid-19, the company outlined it is not having a highly significant impact on its growth plans, forcing it to carry out additional efforts in network but not sufficiently relevant for the time being from a financial point of view to prevent it from confirming its targets. Even though MAS share price shown its defensive profile (-5% in absolute terms and +28% vs. IBEX from the highs seen on the 19th of February), we believe that its good performance should continue. We reiterate BUY. T.P. € 25.00/sh. (upside +46.54%).