Report
Research Team

WOOD Daily: PZU PW; CEZ CP; EUR PW; GPW PW; SFG RO; TLV RO; BVB RO; DIGI RO; M RO; SNG RO; ALARABIA AB; DAT PW; G2M SS; HTO GA; HTO GA; MTELEKOM HB; MTELEKOM HB; OTP HB; PKN PW; VGO PW; KMGZ KZ

HEADLINES:
• PZU: solid 1Q25 results, ahead of the market's expectations; some upside risk for2025E EPS forecasts POSITIVE
• CEZ: 1Q25 beat on distribution and sales segments, disposal of Polish assets POSITIVE
• Eurocash: 1Q25 – weak, as expected NEGATIVE
• Warsaw Stock Exchange: strong 1Q25, with a significant net income beat POSITIVE
• Sphera Group: 1Q25 softer than expected; FY25E budget below our forecasts NEGATIVE
• Banca Transilvania: bottom-line miss, due mainly to asset quality deterioration NEGATIVE
• Bucharest Stock Exchange: net losses booked in 1Q25 NEGATIVE
• DIGI Communications: 1Q25 results – adjusted EBITDA up 5% yoy, in line with our estimate NEUTRAL
• MedLife: uninspiring 1Q25 results NEUTRAL
• Romgaz: 1Q25 results – in line NEUTRAL
• Al Arabia Outdoor Advertising: 1Q25 financial results review – mixed POSITIVE
• DataWalk: preliminary 1Q25 results – sales up 109% yoy, to PLN 13.45m POSITIVE
• Gentoo Media: 1Q25 financial results review – miss on revenue and EBITDA; new guidance implies significant downside for our 2025E estimates NEGATIVE
• OTE: 1Q25 results review – flat yoy adjusted EBITDA, in line with expectations; 2025E guidance reiterated NEUTRAL
• OTE: key takeaways from the 1Q25 earnings call
• Magyar Telekom: key takeaways from the 1Q25 earnings call NEUTRAL
• Magyar Telekom: announces share buyback NEUTRAL
• OTP Bank: Hungarian government proposes to increase taxes on banks NEGATIVE
• Orlen: to reorganise domestic upstream and storage business NEUTRAL
• VIGO Photonics: signs letter of intent to acquire assets of a manufacturer of infrared detectors NEUTRAL
• KazMunayGas: 1Q25E results preview (due on 20 May) NEUTRAL
• Short News (ACP, TEN)
Underlyings
ARABIAN CONTRACTING SERVICES CO

Banca Transilvania S.A.

CEZ as

CEZ Group is a dynamic, integrated electricity conglomerate based in the Czech Republic and with operations in a number of countries of Central and Southeastern Europe and Turkey. Co. is an international group consisting of nearly 120 companies, Czech and foreign. Co.'s primary activities involve the production and transmission of electricity through nuclear, coal-fired and hydro power stations; production and distribution of heat and processing of secondary products generated during the production of electricity and heat as well as coal mining. Co. has operating companies in Poland, Bulgaria, Romania, the Netherlands, Ireland, Germany, Hungary, Albania, Turkey, Serbia, and Slovakia.

Digi Communications NV

Eurocash S.A.

Eurocash, through its subsidiaries, is engaged in the distribution of food products, household chemicals, alcohol, and tobacco products (fast moving consumer goods). Through a range of distribution formats, Co. and its subsidiaries focus its business activities on the wholesale distribution to customers across the wholesale market segments, in particular, to stores throughout Poland such as retail stores, convenience stores at petrol stations, restaurants, hotels and cafeterias. Co. and its subsidiaries operate a range of distribution formats focused on supplying independent stores in Poland, which primarily include: Cash and Carry, Franchise Systems, and Distribution.

GAMING INNOVATION GROUP

Gaming Innovation Group Inc. (GIG) is a holding company. The Company provides gambling solutions and entertainment. The Company's principal activity is to provide a platform for and facilitate Internet gambling, gaming and sports betting. The Company operates two segments, the Business to Consumer (B2C) segment which includes the gaming operations directed towards end users, and the Business to Business (B2B) segment which includes its iGC platform offering, sports trading, games and affiliate marketing. The Company's GiG Core is a cloud-based solution licensed in Malta, United Kingdom, New Jersey, Germany, Sweden, Iowa, Latvia and Romania. The Company's sportsbook can deliver end users a betting experience on offline or online channels. The Company's GiG Data is a data platform, which can be integrated with GiG Core or with third-party solutions for data system. The Company operates in Nordic countries, Europe excluding Nordic countries and Rest of world.

Hellenic Telecommunications Organization SA

Hellenic Telecommunications Organization is a full-service telecommunications group. Co. provides local, long-distance and international fixed-line telecommunications services in Greece and Romania, and mobile telephony services through its Cosmote subsidiary in Greece, as well as in Albania, Bulgaria, the Former Yugoslav Republic of Macedonia and Romania. Co. also provides internet access services and Internet Protocol (IP) -based telecommunications applications, as well as information technology application development and hosting services using IP technologies. Also, Co. provides several other telecommunications services, including value-added services and public telephone services.

KazMunayGas NC JSC

Magyar Telekom Telecommunications

Magyar Telekom is engaged in the providing fixed line and mobile telecommunication services for public and business customers. Co. provides voice and non-voice (SMS, MMS, internet, data and content provision) within mobile services; voice, data, internet and TV services within fixed line services. In addition, Co. sells equipment needed for using fixed line and mobile services (telephones, tablets, notebooks, TV sets etc.).

Med Life

OTP Bank Nyrt

OTP Bank is a financial institution based in Hungary. Co. is engaged in retail banking (account management, bankcards and Electronic sevices - OTPdirekt) corporate banking and private banking. In Hungary traditional banking operations are performed by Co. while specialized services, including car leasing, investment funds and insurance are developed and offered by Co.'s subsidiaries. Co. expands its operations throughout the region via its foreign subsidiaries. As of Dec 31 2011, Co. had total assets of HUF10,200,527,000,000 and deposits of HUF6,398,853,000,000.

Polski Koncern Naftowy ORLEN S.A.

Polski Koncern Naftowy Orlen's activities are divided into three main business segments: the Refining Segment that comprises crude oil processing as well as wholesale and retail trade in refinery products. The Petrochemical Segment that encompasses production and sale of petrochemicals and chemicals. The Retail Segment that comprises of sales at petrol stations. Co.'s basic products include gasolines, diesel oils, light heating oil, Jet fuel, liquid gas, polyetylene, polypropylene, benzene, butadiene, acetone, phenol, glycols, toluen, ortoxylene.

Powszechny Zaklad Ubezpieczen Spolka Akcyjna

Powszechny Zaklad Ubezpieczen is an insurance group based in Poland. Co. is engaged in offering a broad range of insurance and financial products. Co. pursues three main lines of business: Property and Casualty Insurance, offered by PZU; Life Insurance, offered by PZU Zycie; and Open-end Pension Funds, offered by PTE PZU, the manager of OFE PZU Zlota Jesien. Co. maintains a network of sales and service outlets including 500 outlets throughout Poland, including 243 shared outlets (common for PZU and PZU Zycie), 137 outlets of PZU Zycie and 120 outlets of PZU. Co.'s business is focused on the Polish market but it also conducts insurance business in the Lithuanian and Ukrainian markets.

S.C. Bursa de Valori Bucuresti S.A.

Societatea Nationala De Gaze Naturale ROMGAZ SA

Sphera Franchise Group SA

Vigo System SA

Vigo System SA is a Poland-based company engaged in the production of detectors business sector. The Company is a manufacturer of standard and customized High Operating Temperature cadmium mercury telluride (HgCdTe) detectors. The Company's products are divided into three categories, including Infrared Detectors, Infrared Cameras and Measurement Equipment. The Company sells its products worldwide, including the United States, Canada, Finland and Australia, among others. It also cooperates and sells the products to NASA.

Warsaw Stock Exchange

Gielda Papierow Wartosciowych w Warszawie SA (Warsaw Stock Exchange, GPW) is a Poland-based stock exchange. It is a parent entity of WSE Group that offers products and services within its trading markets of equity, derivate, fixed income and structured products. It also distributes market data. The Company has two business lines: Financial market, which includes trading in equities, derivatives, fixed-income and other instruments, listing, and information services; and Commodity market, which includes trading in electricity and property rights in certificates of origin, operation of a register of certificates of origin, clearing, trade and technical trade operator services. As of December 31, 2011, it operates two wholly owned subsidiaries, WSEInfoEngine SA, providing data transmission and information services; and Instytut Rynku Kapitalowego WSE Research SA, engaged in publishing; as well as 92.47%-owned BondSpot SA.

Provider
Wood and Company
Wood and Company

WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.

A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.

Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.

We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.

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