During Q1 2024, Ericsson NT recorded a revenue decrease of 25% YoY, an EBITDA decline of 21%, and a net income of EUR 6.39m, a decrease of 18% YoY. At the same time, the Company also published its dividend payment policy, according to which it aims to pay out between 30% and 100% of distributable profit from the previous year if business operations permit in the form of dividends.
Starting off with the sales revenue, it amounted to EUR 52m during Q1 2024, decreasing by 25% YoY. Ericsson NT noted that while they did start the year by contracting new business deals in the operator segment in the Croatian and export markets, as well as in the Digital Society segment, the non-renewal of the contract with HT regarding managed services resulted in the decline of sales revenue. The decrease was further exacerbated by the operators’ cautious investments in network modernization and the dynamics of the implementation of contracted activities. This was partially offset by growth in other segments.
Breaking the revenue down by segments, in the domestic market, revenue amounted to EUR 11.9m, down 54% YoY, due to the mentioned non-renewal of the contract with HT, as well as the cautious investments by operators in the network optimization. Ericsson NT does note that at the beginning of 2024, they signed a cooperation agreement with HT, according to which Ericsson NT will be the exclusive supplier of the radio part of HT’s mobile network until 2027. The Company has been further working with A1 Hrvatska, in accordance with its multi-year framework contracts, to further expand the coverage and capacity of the 5G radio network, as well as on the modernization and construction of the convergent core network, among other things.
Lastly, in the Digital Society segment, the Company has been working with the Croatian Employment Service (CES) related to the delivery of a system to support the basic processes of CES, the e-Advisor system, and improved user profiling. Ericsson NT also continued cooperation with the Ministry of Health, the Ministry of Justice, the Public Administration, and the State Geodetic Administration, along with a few others.
In the export markets (excl. services to Ericsson), revenue amounted to EUR 4m, down 34% YoY, as a result of project execution dynamics. The Company notes that it signed a multi-year framework contract with Telekom Kosova for the complete modernization and maintenance of the radio network. With Kosovo operator IPKO, several projects for the modernization and maintenance of the core network were contracted. With HT Mostar, the implementation of the latest technological version of Ericsson Evolved Packet Core (EPC) and Diameter Signaling Controller (DSC) solutions was contracted. Projects were also contracts with Crnogorski Telekom and Ucom Armenia, for the modernization and maintenance of mobile networks.
In the Ericsson market, revenue amounted to EUR 36.1m, down 3% YoY, due to the higher engagement of the Services and Solutions Center’s experts on projects for customers of Ericsson Nikola Tesla Growth. This was offset by higher revenue from R&D activities.
Ericsson NT sales breakdown by market (Q1 2017 – Q1 2024, EURm)
Source: Ericsson NT, InterCapital Research
Moving on, EBITDA amounted to EUR 8.8m during Q1, decreasing by 21% YoY. This would imply an EBITDA margin of 16.9%, an increase of 0.92 p.p. YoY. To understand this, we have to look at the operating expenses. In Q1 2024, OPEX decreased by 24% YoY, to EUR 46m, with material expenses decreasing by 45% YoY to EUR 17.2m, while employee expenses declined by 10% YoY, to EUR 30.2m. This would imply that the situation regarding inflationary pressures, especially for material costs has largely dissipated. Due to the faster revenue than OPEX decline, however, we get an EBITDA margin that is slightly higher YoY.
In terms of the net financial result, it was positive at EUR 468.5k (Q1 2023: EUR 2.1k), leading to a slightly better net income dynamic as compared to EBITDA. Still, net income decreased by 18% YoY to EUR 6.39m. As with the EBITDA margin, however, the net income margin improved, this time by 1.01 p.p. to 12.3%.
Ericsson NT key financials (Q1 2024 vs. Q1 2023, EURm)
Source: Ericsson NT, InterCapital Research
Ericsson NT also recently proposed a dividend of EUR 15 DPS, DY of 7.6%, more on which you can read here. Furthermore, Ericsson NT also published a document detailing its dividend payment policy. Going forward, the Company aims to pay out 30% to 100% of the distributable profit from the previous year in the form of dividends. This is of course subject to the business operations and results of the Company, the situation on the capital market, the financial position of the Company, working capital requirements, as well as other factors and developments which might influence this policy.
In Q1 2024, ZABA recorded NII growth of 24% YoY, NFCI increase of 8%, net banking income growth of 19%, and a net income to majority of EUR 154m, representing an increase of 29% YoY.
On Friday, ZABA published its Q1 2024 results, and in this overview, we’re bringing you the highlights. During Q1 2024, ZABA recorded a net interest income of EUR 181m, growing by 24% YoY. While ZABA does not detail how this developed, by looking at the bank’s balance sheet and the general trends in the industry, we can make some precise predictions. The lines in the balance sheet we’re interested in are cash, cash balances at central banks, and other demand deposits, as well as financial assets at amortised cost. The first category includes the deposits that ZABA holds at the central bank, which yields return of 4% based on the ECB key deposit interest rate, which is on this level from 30 Sept 2023.
This category decreased by 24% YoY, and amounted to EUR 5.06bn in Q1, showing that while ZABA did invest in this and is yielding returns, they have reduced their position. Even so, this positively influences the NII as the rates on these deposits are higher now than they were in Q1 2023. The other category, financial assets at amortized cost includes debt securities, loans and advances to credit institutions, and loans and advances to customers. In other words, the loans that ZABA gave to other banks, the loans issued to clients, and the bonds they hold yield returns. Debt securities increased by 41% YoY and amounted to EUR 1.86bn, loans and advances to credit institutions grew by 144% YoY to EUR 2.58bn, while loans and advances to customers increased by 6% to EUR 12.9bn.
As such, it can be summarized that the returns that ZABA is getting in its net interest income came from the larger asset base across these categories, but also due to higher interest rates on these assets, especially loans to customers. Moving on, net fee and commission income grew by 7.5% YoY to EUR 57m, also indicating that customers continue using ZABA’s various services. This is also a positive development, as for other banks this category saw stagnation or even a slight decrease. Given ZABA’s market leader position in Croatia however, this isn’t unexpected.
Together, this led to a net banking income of EUR 252.9m, growing by 19% YoY. In terms of operating expenses, they amounted to EUR 82m, growing by 2.5% YoY. Impairments and other provisions also remained roughly unchanged, at EUR 15m, decreasing by 6.3% YoY. All taken together, this resulted in a net income to majority of EUR 154m, growing by 29.4% YoY.
ZABA key financials (Q1 2024 vs. Q1 2023, EURm)
Source: Zagrebačka banka, InterCapital Research
Taking a quick look at the balance sheet, total assets grew by 6% YoY to EUR 24.3bn, mainly supported by the aforementioned increase in loans and debt securities, while cash and cash balances at the central bank decreased. On the other hand, total liabilities increased by 7% YoY and amounted to EUR 21.5bn, mainly supported by higher deposits from customers, which also grew by 7% and amounted to EUR 19.6bn. Equity meanwhile, amounted to EUR 2.8bn, growing by 1% YoY.
Last week, Banca Transilvania OGSM & EGSM were held, during which the cash dividend of RON 1.252 DPS was approved, as well as the stock dividend of 14.8 new shares per 100 existing shares held. When combined, this would imply a DY of 19.3% at the share price before the initial proposal. In this overview, we give you the details.
Starting off with the cash dividend, during the OGSM held last week, Banca Transilvania’s shareholders approved a cash dividend of RON 1.252 DPS, which at the share price before the announcement would imply a DY of 4.5%. In total, this would mean that the dividend payment would amount to RON 1bn, from the net profit reserves of the year 2023. The ex-date is set for 11 June 2024, while the payment date is set for 26 June 2024.
Banca Transilvania dividend per share (RON) and dividend yield (%) (2019 – 2024)
Source: Banca Transilvania, InterCapital Research
Furthermore, during the EGSM, the shareholders approved the share capital increase of the Bank. This will be done through the capitalization of reserves from the net profit of the year 2023, in the amount of RON 1.18bn, by issuing 118.2m shares with a nominal value of RON 10/share. These shares will be granted to shareholders, in such a way that for every 100 existing shares held, 14.8 shares will be awarded. As such, this could be considered a stock dividend, with a DY of 14.8% at the share price before the announcement. The ex-date for this resolution is set for 18 July 2024.
When the cash and the stock dividend are combined, we get a DY of 19.3% at the share price before the announcement, also making it the largest DY currently offered by the BET constituents. If you would like to read more about this news, as well as the other resolutions, you can click here.
At the share price before the announcement, this would represent a DY of 1.1%. The ex-date is set for 27 June 2024, while the payment date is set for 15 July 2024.
Last week, One United Properties held its OGSM and EGSM, during which many resolutions were adopted. The one we’re interested in here is the distribution of profit in the form of dividends. According to the resolutions, RON 37.9m would be distributed from the 2023 net profit in this form. This represents a 2nd dividend that would be paid out from the 2023 net profit, with the last one approved all the way back in October 2023, in the same amount. On a per-share basis, this would imply a dividend of 0.01 DPS, and at the share price before the announcement, the DY amounts to 1%.
Together, this would mean that RON 75.9m would be paid out from the 2023 net profit, implying a combined DY of 2.2% at the share price before the announcement. Furthermore, on a consolidated basis, this represents a payout ratio of app. 16.9% for both dividends. For this 2nd dividend tranche, the ex-date is set for 27 June 2024, while the payment date is set for 15 July 2024. Below we provide you with the historical dividend per share and dividend yield of the Company.
One United Properties dividend per share (RON) and dividend yield (%) (2021 – 2024*)
Source: One United Properties, InterCapital Research
*Due to more than 1 dividend payment, dividends are recorded in the year they are paid out
Here you can find the dates for the upcoming events of the regional companies
| wdt_ID | Date | Ticker | Announcement | Country |
|---|---|---|---|---|
| 35 | 26.4.2024 | ATPL | Atlantska Plovidba Board of Directors Meeting | Croatia |
| 36 | 26.4.2024 | ZVTG | Triglav Convocation Notice of the General Meeting of Shareholders on the distribution of profit | Slovenia |
| 37 | 26.4.2024 | SNG | Romgaz FY 2023 Audited Report | Romania |
| 38 | 26.4.2024 | ONE | One United Properties FY 2023 Audited Report | Romania |
| 39 | 26.4.2024 | TRP | TeraPlast FY 2023 Audited Report, General Meeting of Shareholders | Romania |
| 40 | 26.4.2024 | COTE | Conpet FY 2023 Audited Report | Romania |
| 41 | 26.4.2024 | TLV | Banca Transilvania General Meeting of Shareholders - second call | Romania |
| 42 | 26.4.2024 | SNN | Nuclearelectrica Annual report 2023 | Romania |
| 43 | 26.4.2024 | SNN | Nuclearelectrica Annual report 2023 Conference Call | Romania |
| 44 | 26.4.2024 | SFG | Sphera Franchise Group General Meeting of Shareholders | Romania |
| 45 | 26.4.2024 | SFG | Sphera Franchise Group Annual report 2023 | Romania |
| 46 | 29.4.2024 | KOEI | Končar Q1 2024 Results | Croatia |
| 47 | 29.4.2024 | ADPL | AD Plastik Q1 2024 Results | Croatia |
| 48 | 29.4.2024 | TEL | Transelectrica General Meeting of Shareholders | Romania |
| 49 | 29.4.2024 | H2O | Hidroelectrica Annual General Meeting of Shareholders | Romania |
| 50 | 29.4.2024 | FP | Fondul Proprietatea General Meeting of Shareholders | Romania |
| 51 | 30.4.2024 | HT | Hrvatski Telekom Q1 2024 Results, Conference Call for analysts and investors | Croatia |
| 52 | 30.4.2024 | ATPL | Atlantska Plovidba Q1 2024 Results and FY 2023 Audited Report | Croatia |
| 53 | 30.4.2024 | PODR | Podravka Q1 2024 Results | Croatia |
| 54 | 30.4.2024 | RIVP | Valamar Riviera Q1 2024 Results | Croatia |
| 55 | 30.4.2024 | ADPL | AD Plastik Q1 2024 Results Presentation | Croatia |
| 56 | 30.4.2024 | SNP | OMV Petrom Q1 2024 Results, Conference Call for Q1 2024 Results | Romania |
| 57 | 30.4.2024 | TEL | Transelectrica FY 2023 Audited Report | Romania |
| 58 | 30.4.2024 | WINE | Purcari FY 2023 Audited Report | Romania |
| 59 | 30.4.2024 | H2O | Hidroelectrica 2023 Annual Report | Romania |
| 60 | 30.4.2024 | DIGI | Digi Annual report 2023 | Romania |
| 61 | 30.4.2024 | FP | Fondul Proprietatea Annual report 2023 | Romania |
Due to the nature of these events, they are subject to change (might be postponed or canceled).