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....
A Strong Base Effect Capped Revenue Growth : ETEL reported 3Q19 revenues of EGP6.32 billion, down from EGP7.23 billion in 3Q18 and EGP6.6 billion in 2Q19 (-12.7% YoY, -4.4% QoQ). Retail revenue increased 13.6% YoY and 8.4% QoQ, mainly on a significant increase of 30.3% YoY in Home & Consumer revenues, driven by a 34.4% YoY increase in data revenues and contributing c.43.0% to total revenues. Home and Consumer revenues have offset a YoY decline of 16.7% in Enterprise Solutions revenues.
ETEL reported 2Q19 revenues of EGP6.6 billion, up from EGP5.3 billion in 2Q18 and EGP6.1 billion in 1Q19 (+23.7% YoY, +8.6% QoQ). Retail revenues continued to drive revenue growth, growing by 32.2% YoY and 7.6% QoQ, contributing 51.3% of total revenues. Home and consumer segment contributed 64% of total retail growth, recording revenues of EGP2.54 billon and contributing 38.4% to total revenues, implying an increase of 31.2% YoY and 5.7% QoQ. Enterprise Solutions recorded a 35% YoY hike on the g...
ETEL’s revenue and profitability will continue to be mainly driven by high growth in data services and improved overall market share through bundled service offering, and improved efficiency as mobile dilution gradually phases out. According to our projections, the retail segment contribution to total revenues will reach more than 66% of total revenues by 2023, mainly driven by the above average growth in home service ADSL revenues. Higher retail contribution will drive profitability for ETEL,...
This is a joint report from Exotix Capital and its research partner in Egypt, Pharos Holding. This report discontinues Exotix’s independent coverage of Global Telecom Holding and Telecom Egypt. Please refer to Pharos’s recent Egypt equity strategy for their views on Egypt’s telecoms sector,
Flat Q4 18 revenues in absence of cable projects. ETEL reported Q4 18 results showing Q4 18 revenues of EGP5.4bn, almost flat yoy and down 25.2% qoq. The sequential decline was on the concluded MENA Cables EGP1.6bn transaction in Q3 18 and the absence of similar cable projects and lower capacity sales in Q4 18. Additionally, the relative weakness in Q4 18 results is coming from an operationally solid previous quarter as well as higher marketing costs and the push of high margin project revenue b...
We upgrade our FV for ETEL to EGP16.22, up from EGP15.25; and maintain our Overweight recommendation. Our value is mainly driven by (i) access to high quality mobile services through the investment in Vodafone Egypt, (ii) high growth in data services and improved overall market share through bundled service offering, (iii) improved efficiency and higher profitability over our forecast horizon as mobile dilution gradually phases out, (iv) and foreign currency revenue streams from the cables segme...
​We downgrade our TE fair value to EGP 13.94/share with a “Buy†recommendation, entailing 35% upside potential. This represents almost 12% down from previous fair value of EGP 15.15/share in our last Risk free rate cuts report. We used an average WAAC of 19.02%, as we account for a 2% uncertainty risk discount surrounding the company’s prospects in the medium term, specifically related to mobile operation segment performance, the segment that should be driving growth in the company’s t...
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We see downside risk on the telecom sector as i) disposable income dwindles following the EGP devaluation (with inflation set at 20% in FY 17e), ii) 14% VAT burden weights in FY 17e, and iii) outsourced CAPEX becomes more expensive domestically, pressuring FCF and EPS.Vodafone Egypt (45% owned) stake could be worth 1.2x TE market cap. We continue to see the potential stake sale as major catalyst unlocking deep value in TE.We refrain from incorporating the impact of i) mobile operations, and ii) ...
TE posted a flat 2015 top line performance. Indeed, 2015 revenues recorded a slight decrease by 0.2% to EGP12.184bn, due to the crash in the Wholesale Business Unit, partially offset by a healthy increase in retail services (-2.4% expected by AlphaMena). Overall, wholesale services revenues (whose sales contribution reached 55%) recorded a drop by 6.1%, negatively impacted by a severe 41.5% drop in revenues from the International Customers & Networks Unit.
TE posted a poor 9M 2015 top line performance. Revenues were down by 4.7% to EGP8.719bn, due to the crash in the Wholesale Business Unit, partially offset by a healthy increase in retail services. Overall, wholesale services revenues (whose sales contribution reached 54.5%) recorded a significant decrease by 12.3%, negatively impacted by a severe 64.8% drop in revenues from the International Customers & Networks Unit. This decline was attributable to the Business Unit, having reported an excepti...
TE posted a very poor H1 2015 top line performance. Revenues were down by 10% to EGP5.786bn, due to the crash in the Wholesale Business Unit, partially offset by a healthy increase in retail services. Overall, wholesale services revenues (whose sales contribution reached 54.9%) recorded a significant decrease by 19.6%, negatively impacted by a severe 73.8% drop in revenues from the International Customers & Networks Unit. This decline was attributable to the Business Unit, having reported an exc...
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