At the share price before the announcement, this would amount to a DY of 1.92%. Ex-date is set for 4 May 2023, while the payment date is set for 16 May 2023.

After its Supervisory and Management Board meetings, the Company announced both of the Board’s proposals for the distribution of profit. In total, they proposed EUR 0.7 DPS, which at the share price before the announcement would lead to a DY of 1.92%.

It should be noted that today, Arena is also set to announce its FY 2022 results, and the combination of the results and the dividend proposal expectation led to an increase in the Company’s share price of 7.69%. If this price increase did not happen, the DY would amount to 2.07%.

The ex-date is set for 4 May 2023, while the payment date is set for 16 May 2023. Of course, the proposal is subject to approval by the GSM, which will be held on 27 April 2023. As a reminder, the last time Arena Hospitality Group paid out a dividend was back in 2019 when it paid HRK 5 DPS (app. EUR 0.66 DPS), which back then gave investors a DY of 1.5%. In 2020 and 2021 there were no dividend payments due to the COVID-19 pandemic, and more specifically, due to the fact that companies that received COVID-19-related government support could not pay out the dividends, the support that Arena received as well.

According to preliminary FY 2022 results, Banca Transilvania recorded a net interest income growth of 40.9% YoY, a net fee and commission income increase of 21.5%, operating income growth of 27.1%, and a net income of RON 2.49bn, an increase of 22.9% YoY.

In total, Banca Transilvania (TLV) issued 260k loans in 2022, with the total amount of loans equaling 1.14m by the end of the year, an increase of 21% YoY. The total value of the issued loans to customers amounted to RON 68bn, an increase of 21% YoY. The high volume of loans issued, as well as higher interest rates on said loans, have led to a net interest income of 4.43bn, an increase of 41% YoY. Net fee and commission income (NFCI) also noted an increase, growing by 21.5% YoY, and amounting to RON 1.17bn. Even though the Group did not provide much clarification as to why the NFCI increased, it could be summarized that due to the higher number of customers (3.5m retail customers) using loans issued by the banks, they are also using more of the bank’s services, leading to the higher income on this line.

Together, this led to the operating income amounting to RON 6.28bn, an increase of 27% YoY. Moving on to the operating expenses, in total, they amounted to RON 2.98bn, an increase of 25%, or RON 601.7m YoY. This growth was driven by an increase of personnel expenses, which grew by 24.6% (or RON 327.3m) and amounted to RON 1.66bn. Other op. expenses also noted an increase, growing by 34.4% (or RON 239.3m) YoY to RON 935.2m.

This also leads to a cost-to-income ratio of 47.5%, an increase of app. 0.7 p.p. YoY, implying that the Group has managed its revenue and especially cost growth well. Combined, this leads us to a net profit of RON 2.49bn, an increase of 22.9% YoY.

Banca Transilvania key financials (Preliminary 2022 vs. 2021, RONm)

Source: Banca Transilvania, InterCapital Research

Moving on to the balance sheet, the total assets of the Group amounted to RON 140.5bn, an increase of 6% YoY. This was mainly driven by the aforementioned increase in loans to customers, which increased by 21.2% and amounted to RON 68bn. A notable increase was also recorded in other financial assets, which grew by 78.9% to RON 1.89bn. On the other hand, Cash and cash equivalents at Central Bank decreased by 20.6% YoY and amounted to RON 14.5bn. Placements with banks and public institutions also decreased, declining by 46.4% YoY and amounting to RON 5.57bn.

On the other hand, looking at the liabilities, in total they amounted to RON 131bn, an increase of 7.5% YoY. The primary drivers of this growth were the deposits from customers, which increased by 10.8% YoY and amounted to RON 119.7bn. Of this, RON 79.9bn were retail customer deposits, while RON 39.85bn were deposits from corporate customers. Deposits from banks also noted an increase, growing by 63.8% to RON 1.68bn. On the other hand, loans from banks and other financial institutions decreased by 38.9% to RON 4.84bn.

Banca Transilvania also commented on several other pieces of financial information. The NPL ratio stands at 2.44% at the end of 2022, and the total provision coverage of NPLs stands at 195%. Finally, the Capital Adequacy Ratio (CAR) stands at 19.26% (excl. net profit) and 21.62% (incl. net profit), and given that the Board of Directors (BoD) also proposed that roughly RON 900m of the net profit be used for the capitalization purposes, the 21.6% number should be the one looked at. The BoD proposed that the remaining amount (RON 1.1bn) be moved to retained earnings.

In 2022, Transelectrica’s preliminary numbers show an increase in revenue of 67% YoY, an EBITDA growth of 214%, and a net income of RON 529.2m (2021: RON 450k).

In total, according to the preliminary FY 2022 results, the revenue amounted to RON 6.29bn, an increase of 67% YoY. Transelectrica’s revenue is divided into 2 categories; a segment of activities with allowed profit, and a segment of activities with zero profit.

Focusing on the segment with allowed profit, it recorded a revenue of RON 2.32bn, an increase of 77% YoY. This was due to higher revenues from interconnection and the recording of revenues from OTC (own technology consumption) capitalization. Breaking this down further, revenue from OTC capitalization (full explanation available in the FY 2022 report, here) amounted to RON 338.5m (2021: RON 0). Meanwhile, transport revenue and other revenues on the energy market amounted to RON 1.93bn, an increase of 54% YoY. This was mainly influenced by the increase in the average transport tariff (for revenues from the regulated transport tariff), the conditions of the decrease in the amount of electricity delivered to consumers, as well as the evolution of interconnection revenues. In fact, in 2022, the revenues from the allocation of interconnection capacity increased by more than 5 times and amounted to RON 399.2m.

Moving on to operating expenses, they amounted to RON 1.72bn, an increase of 29% YoY. The largest driver of this growth was the cost of purchasing energy to cover own technological consumption, which amounted to RON 827m, an increase of 57% YoY. This was mainly under the influence of several things, firstly the way that the system is designed (full explanation available on page 17 of the report), the average price of energy purchased, which was more than 2 times higher compared to 2021, as well as the unpredictability of the market which led to a rapid increase in prices. As a result of the faster revenue than expenses growth, the EBITDA amounted to RON 871m, an increase of 237% YoY. This would also imply an EBITDA margin of 37.6%, an increase of 17.84 p.p. YoY.

Turning our attention to the segment of activities with zero profit, revenue amounted to RON 3.97bn, an increase of 62% YoY, this was mainly driven by an increase in the revenue from the balancing market. OPEX mainly followed the growth in the revenue, increasing by 63% YoY, and amounting to RON 3.95bn.

Both of these segments taken together have led to an EBITDA of RON 895m, an increase of 214% YoY, implying an overall EBITDA margin of 14.24%, an increase of 6.65 p.p. YoY. Finally, the net profit amounted to RON 529m (2021: RON 450k).

Transelectrica’s overall key financials (Preliminary 2022 vs. 2021, RONm)

Source: Transelectrica, InterCapital Research

Here you can find the dates for the upcoming events of the regional companies.

Due to the nature of these events, they are subject to change (might be postponed or canceled).