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MÁSMÓVIL: 4Q’19 RESULTS (ANÁLISIS BANCO SABADELL)

4Q'19 vs. 4Q'18 Results
Sales: € 462.0 M (+11.9% vs. +10.0% BS(e) and +15.5%);
EBITDA: € 131.0 M (+45.6% vs. +42.3% BS(e) and +35.6% consensus);
Net Profit: € 70.0 M
FY2019 vs. FY2018 Results
Sales: € 1.681 Bn (+15.9% vs. +15.3% BS(e) and +16.9% consensus);
EBITDA: € 468.0 M (+41.8% vs. +40.9% BS(e) and +39.1% consensus);
Net Profit: € 154.0 M (+14.1% vs. -23.7% BS(e) and -11.9% consensus);

Good results, slightly above expectations in EBITDA and above expectations in cash (NFD/EBITDA ratio of 3.5x vs. 3.7x expected). Sales’19 by service grew +24% (BS(e) in line), whereas other revenues fell -18% (due to lower handset sales, vs. -10% BS(e)), with total sales’19 growing by +16% (vs. +17.6% BS(e)). The client base continues to expand, standing at 8.9 M lines (+15%), with 212,000 new postpaid mobile clients (vs. +190,000 BS(e)) and +122,000 new BroadBand clients (vs. 115,000 BS(e)). EBITDA’19 came in at € 486 M (+42% and +31% ex IFRS16, slightly above expectations: € 465 M), with the margin coming in at 27.8% (vs. 22.7% in FY2018). Operating CF totalled € 67 M and NFD came in at € 1.65 Bn (vs. e 1.73 Bn BS(e)), bringing the NFD/EBITDA ratio to 3.5x (vs. 3.7x BS(e)). The company reiterates its 2020-21 guidance.
We expect a positive impact from these robust results that have once again showcased the company’s growth capacity. Furthermore, MAS has presented solid cash figures, which translates into lower NFD than expected, a clear sign of the company’s focus. Additionally, MAS has stated that January was a record month in portability numbers, which should mean the trend of an expanding client base will continue in 2020.BUY. T.P. € 25.00/sh. (upside +35.80%).