In November, passenger car registration in the EU decreased by 20.5% YoY, totaling 713,346 units. The biggest decrease reported in EU was in Germany, where the reported decrease amounted to 92k units, representing a 31.7% YoY decrease. Also, Italy reported a significant decrease of 34k units, representing a decrease of 25% YoY.
However, when observing the development since the beginning of the year, the situation is not that bad. EU demand for new cars decreased only by 0.04% YTD, reaching 8.9m units registered in total. When observing the whole period, Germany, as a major market, reported a decrease of 8.1%. This decrease was partly offset by an increase in another major market, Italy. Italy reported an increase of 8.6% YTD, which is an increase of 109k units of cars registered. Spain, which is also considered a major market, reported a slight increase of 3.8% YTD.
When observing the situation in the region, Croatia posted a decrease of 4.7% YoY, while YTD Croatia reported a steep increase of 25%, amounting to 42.5k. Slovenia reported a slightly different story. In November, car registered reported a double-digit increase of 15.5% YoY, but when compared since the beginning of the year, Slovenia reported a slight increase of 0.2% YTD.
Ericsson NT has announced new contracts on the domestic and foreign market that will be realized in the next year.
On Wednesday, Ericsson NT has announced the signing of new contracts, which are worth HRK 38m. These contracts pertain to both the domestic and the foreign markets. Looking at the foreign market first, Ericsson NT signed new contracts in Kosovo and Belarus, regarding the expansion of the mobile operator networks BeCloud, A1 Bjelorusija, and Ipko.
Regarding the domestic market, the Company signed a contract with the Ministry of Justice and Public Administration and the State Geodetic Administration, relating to the „Development and Upgrade of the One Stop Shop of the Joint Information System of Land Registry and Cadaster (JIS)“.
As a reminder, Ericsson NT reported positive financial results in their 9M 2021 results. The Company’s sales increased by 6.2% YoY, their EBITDA increased by 47.8% YoY, while they had a profit increase of 70.9% YoY. These increases were driven by the continued cooperation with HT, which is one of the leaders of the 5G technology expansion in Croatia.
With the signing of these new contracts, the Company has more room for expansion in both the domestic and foreign markets. This is already reflected in the Company’s share price, which experienced a growth of 19.3% YTD, and with this news, this positive trend is surely going to continue. Also, at the current price of HRK 1,790, the Company is trading at a P/E of 16.8x and an EV/EBITDA of 9.1x.
Ericsson NT and CROBEX Performance YTD (%)
One United Properties and Transport Trade Services included in the FTSE Global Cap, FTSE Global Micro Cap, respectively.
As of December 20th, One United Properties (ONE) and Transport Trade Services (TTS) shares are included in the FTSE Russell Indices for Emerging markets, FTSE Global All Cap, and FTSE Global Micro Cap, respectively. This makes One United Properties the fifth Romanian company included in the FTSE Global All Cap indices, joining Banca Transilvania, Nuclearelectrica, OMV Petrom, and TeraPlast.
At the same time, Transport Trade Services is the second Romanian company included in the FTSE Global Micro Cap indices, joining Bittnet. The decision to include ONE and TTS in FTSE Global All-Cap indices was decided by the global index provider following the quarterly review announced on Friday, November 19th.