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Due to a more favourable environment, GLOBAL TELECOM slightly increase...
GLOBAL TELECOM (EG), a company active in the Mobile Telecommunications industry, slightly increases its general evaluation. The independent financial analyst theScreener just confirmed the stock market behaviour of the title as risky. At the fundamental level, theScreener confirms the rating of 0 out of 4 stars; given the more favourable environment, the title's overall rating is upgraded to Slightly Negative even if it remains under pressure. As of the analysis date December 7, 2021, the closin...
- Myriam CHAABOUNI
A really good achievement
GTH recorded flat 9M 2016 revenues at US$2.188bn, mainly due to the slowdown in Algeria, offsetting the continued solid performance in Bangladesh and the double-digit growth in Pakistan. After a historical domination of the group’s revenues, Djezzy, GTH’s Algerian unit, lost one place to become the group’s second revenue contributor (35.9% of 9M 2016 total revenues vs. 44.4% in 9M 2015) recorded a 18.6% decrease in its 9M 2016 revenues (-10%, in local currency), due to customer churn and A...
- Sarah Shabayek
Downgrade to Neutral on challenges in Algeria
Cut target price by 21% on Algeria’s challenging recovery. We reduce our rating on a revised TP, but also after a strong share price rally y-t-d. Djezzy’s value was cut by 38% to reflect a 20% lower EBITDA in 2016-20e. Its recovery depends on strategic remedies to its pricing and commercial strategy. The churn rate shot to 10% in 2Q16 from 6% (pre FNI deal) and ARPU fell 12% y-o-y. Algeria is facing a pricing disequilibrium that is unconducive to growth and data monetisation, in our view. Manage...
- Sarah Shabayek
Reiterate Overweight; improved risk-reward profile
Turnaround on track. Over the past year GT was able to turn around its second out of three opcos, benefit from Algerian regulations, refinance the Vimplecom (VIP) loan, and turn net profit positive. GT still trades at a 35% discount to peers on 2017e EV/EBITDA even after a c54% rally y-t-d. We believe there is more to come as this track record gives us confidence in GT’s and specifically Algeria’s turnaround. GT remains our top MENA telecoms pick.
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