WOOD Flash – Wirtualna Polska: key takeaways from the 3Q19 meeting with investors
Today (19 November), we met with Wirtualna Polska’s (WPL) management to discuss the 3Q19 results. We see the outcome of the meeting as positive, considering the promising medium term-outlook provided by management. Firstly, we note that the company might conclude an acquisition abroad soon, which we believe could be a positive trigger for WPL, considering its strong track record in terms of M&A. Secondly, we appreciate the strong organic performance generated by Nocowanie.pl (113% yoy growth in EBITDA), proving that WPL not only purchases promising businesses, but is also able to improve them organically. Thirdly, according to WPL’s management, the wakacje.pl performance should improve in the coming quarters: the CEO stated that wakacje.pl’s 2020E EBITDA should grow at a double-digit pace again. Fourthly, WPL expects WP TV to reach breakeven in terms of FY20E EBITDA, and it might consider selling the TV project; we believe this would be warmly welcomed by the market. Moreover, we note that WPL is working on its own retargeting platform, which could reduce the costs of cooperation with Google substantially. Last but not least, we note that WPL’s management, based on its discussions with advertisers, expects the 2020E online ad market to be strong again, with high single-digit growth yoy. We have been concerned that, considering the stage of the economic cycle, the ad market growth might decelerate strongly, along with the decelerating economic expansion, but WPL does not see any signs of this currently.Wirtualna Polska Holding SA is a Poland-based holding company. The Company owns entities that are engaged in the Internet publishing and broadcasting content, including operating business, technology, sports and entertainment portals, as well as electronic mail (e-mail) and electronic commerce (e-commerce). It also offers a range of advertising products, including display ads. The Company operates through such Internet portals as Wirtualna Polska, o2.pl, Money.pl, WP SportoweFakty, Dobreprogramy.pl, WP Parenting, Domodi and Homebook, among others. The Company operates domestically.
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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