Salt has reported a decent set of results, but SR and EBITDAaL growth is again slower sequentially. Price competition remains elevated in Switzerland, and although Salt is continuing to outperform the market in SR terms thanks to KPI gains, ARPUs have taken another step down, which adds risk to the future growth trajectory.
Salt has reported a good set of results, but SR and EBITDAaL growth is slower sequentially. Given the pace of KPI growth, Salt is having to expand some of its customer care and support functions. We think that operational leverage will resume once this process is over, as Salt did not call out a new higher level of commercial spend on the call.
Salt has reported another good set of results, with SR growth at +5.7% y/y vs the overall Swiss market at -0.7% y/y. Salt continues to materially outperform Swisscom and Sunrise-UPC. This quarter, EBITDAaL growth has matched the SR growth as well.
As part of our increasing coverage of the High Yield universe, we include new estimates and coverage for seven new names: Digi, Nuuday, Masmovil, Rakuten, Salt, TalkTalk, and Tele Columbus, taking total coverage to 18. As a result, we are now able to benchmark each company against each other, in terms of growth, risk, and asset cover.
Salt continues to outperform Swisscom and Sunrise-UPC in Switzerland, but it has seen a bigger sequential slowdown in SR growth than either this quarter. EBITDA growth has slowed less, but is down a touch to +4.2% y/y from +4.6% y/y. Capex is up as fixed net adds remain good, and we think that the new P2P FTTH wholesale deal with Swisscom will bring a new leg of growth for Salt.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
In the past week, press articles have suggested that Xavier Niel’s Salt is preparing an IPO, and that he is either selling out or not putting in new capital; other articles about the TMNL sale process have excluded his name, whereas previous reports have included it.
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