As Optima Telekom recorded a stellar share price performance both YTD and in the past five days, we are bringing you a brief overview of the share price movement, turnover and the reasons for the increase.
As a reminder, on 31st May, the media has covered that the Swedish Tele2 AB announced on the sale of their Croatian subsidiary Tele2 Hrvatska. The sale of the Croatian segment was concluded with United Group for the value of EUR 220m (at 7.2x T12 EBITDA).
This is particularly interesting as Optima Telekom, which is currently consolidated and managed by HT will be subject to sale. As a reminder, HT should dispose of their 17.4% stake in Optima Telekom until 10 July 2021.
It is speculated by the media that United Group might be interested in acquiring Optima Telekom, as the company’s business is majority related to fixed broadband, which is a segment TELE2 Hrvatska does not operate in. Such an acquisition would lead to a consolidation of all majority telecom segments on the Croatian market by the United Group.
As a result of the above mentioned, many investors have flocked to the share, which is noticeable when observing the company’s high turnover in the past days and the share price performance. Since 31st May (until 6 June), Optima observed a turnover of HRK 8.6m, which would translate to an average daily turnover of HRK 1.7m. As a comparison, since the beginning of the year (until 30 May), Optima observed a turnover of HRK 30.3m, which would translate to an average daily turnover of HRK 0.29m.
Turning our attention to the share price performance, since 31 May, Optima recorded an increase of 56% and currently amounts to HRK 5.0 per share (closing price 6 June). Note that since the beginning of the year, the company’s share price increased by 196%.
YTD Share Price Performance
At the current share price, the company is traded at P/T12E of 54.24 and EV/T12 EBITDA of 5.22. When comparing it to its peers, Optima is traded at a significantly higher P/E and at an above average EV/EBITDA. However, note that these companies are not the best suiting peers as they differ in size and business model (Optima is focused on fixed broadband).
Comparing P/E and EV/EBITDA to Peers