IC Market Espresso 24 Jul 2019

Banca Transilvania Boosts Share Capital by RON 400.8m to RON 5.2bn

Banca Transilvania, the largest bank in Romania, has increased their share capital by RON 400.8m, by issuing 400,824,754 new shares.

According to a statement released on the Bucharest Stock Exchange yesterday, Banca Transilvania has increased their share capital by RON 400.8m. The cap hike was done in accordance with the decision made on the Extraordinary General Meeting of Shareholders held on the 24th of April 2019. In accordance with the decision Banca Transilvania will issue 400,824,754 new shares, with a nominal value of RON 1/share. The statement also noted that the registration of the share capital increase is currently in progress with the Central Depository.

Following the increase, Banca Transilvania’s share capital reaches RON 5.2bn, divided into 5,215,917,925 shares, each with a nominal value of RON 1.

Liburnia Riviera Hoteli Publishes H1 2019 Results
Liburnia Riviera Hoteli published their H1 2019 results yesterday, showing a 3% YoY decrease in sales, 2449% increase in EBITDA and a 51% YoY decrease in net loss which amounted to HRK 24m.

In H1 2019 Liburnia recorded a 5% decrease in the amount of overnight stays when compared to the same period last year. Meanwhile, sales amounted to HRK 100m, representing a 4% YoY decrease. However, a strong improvement was recorded on the operating line as EBITDA surged to HRK 28.5m from last year’s low of just HRK 1.1m. Note that the strong improvement was not caused by an improved operating performance, but instead it was due to the lack of one-off expenses which the company experienced last year. As a reminder, in H1 2018 the company paid out a HRK 14m net bonus to their departing CEO. When grossed the amount rises to HRK 28m which burdened last year’s result.

Below the operating line, net financial result improved by 48% YoY amounting to HRK -0.9m. Finally, as a result of the above mentioned, net loss was sliced in half, amounting to HRK -24.2m.

Turning our attention to the balance sheet, the company remains mildly indebted with net debt amounting to HRK 201.9m. This translates into 1.8x net debt/EBITDA.

Finally, since majority of tourist activities occurs during Q3, results posted thus far are not a good indicator of what one might expect from the full year results.