The Court rejected claims of Sky net, for the fulfillment of a contract according to two lawsuits, which amounted to EUR 33m.

Telekom Slovenije published a document on the Ljubljana Stock Exchange announcing that they received a ruling and a decision of the Ljubljana District Court regarding the commercial dispute of Sky net, for the fulfillment of a contract according to two lawsuits, which amounted to EUR 33m.

The Ljubljana District Court rejected both the part of the subordinate claim of Sky net, regarding the construction of base stations and preparation of documentation pertaining to 2007, as well as the remaining part of the subordinate claim regarding the issued orders for the construction of 414 base stations and the orders for obtaining the documentation for 434 base stations.

Telekom Slovenije adds that the court also ruled that Sky net is obligated to reimburse Telekom Slovenije, for legal costs in the amount of EUR 30,146.

In 2019, Fondul recorded the net unrealized gain from equity investments at fair value through profit or loss in 2019 of RON 2.26bn compared to RON 225.3m in 2018. 

Fondul Proprietatea published their FY 2019 report, according to which the net unrealized gain from equity investments at fair value through profit or loss in 2019 of RON 2.26bn, compared to RON 225.3m in 2018. Such a high increase could be mainly attributed to Hidroelectrica (RON 1.0bn, increase in fair value of 25.8% as a result of the company’s strong performance) and OMV Petrom (RON 838.2m, increase in share price of 49.5%).

During 2019, 13 companies in Fondul’s portfolio declared dividends for the 2018 financial year. In addition, 6 companies declared special dividends during 2019. The total amount of gross dividend income recorded by the Fund in 2019 was RON 942.9m, representing an increase of 21.5%. Of that, the dividend income earned came mainly from Hidroelectrica (RON 558.2m), OMV Petrom  (RON 152.9m), and CN Aeroporturi Bucuresti  (RON 93.0m). From the total gross dividend income for 2019 a total amount of RON 259.3m represented special cash distributions.

As a result of the above mentioned, net operating income stood at RON 3.21bn, compared to RON 1.02bn in 2018.

When observing operating expenses, they amounted to RON 75.9m, which is an increase of 3.5%.  Such an increase mostly came as a result of higher administration fees.

Net profit in 2019 amounted to RON 3.13bn, which is by RON 2.2bn higher compared to 2018.

Turning our attention to the company’s NAV, the company reported a total NAV of RON 11.87bn (EUR 2.48bn) (+23% YoY). During the last quarter of 2019 the NAV per share increased by 11.4%, mainly due to the update of the unlisted portfolio companies’ valuation (revalorization of their largest holding – Hidroelectrica).

In 2019, the Fund’s NAV per share total return was 31.23% and the Fund’s share price cumulative performance was 49.05%. The discount of the Fund’s share price to the NAV ranged between 43.24% and 18.68%, while it ended the year at 23.05%.

Since then, Fondul has published their January 2020 NAV, which you can read about here.

As a reminder, Fondul recently proposed RON 0.0642 DPS (dividend yield of 4.8%). To read more about it, click here.

In 2019 Purcari recorded an increase in revenues of 18.4%, an increase in EBITDA of 25.3% and an increase in net profit of 6.1%.

As Purcari Wineries published their preliminary 2019 results, we are bringing you key takes from it. According to the report, Purcari recorded an increase in revenues of 18.4% YoY, amounting to RON 199.1m. Such an increase could be mostly attributed to a solid rise in sale of wine by 18.1% or RON 25.4m. Purcari Wine observed a high increase in sales of 33% amounting to RON 81.4m.

When observing sales by market, Purcari grew in almost all of their markets, the Romanian market, which accounts for 42% of the sales (largest market), observed an increase of 26% or RON 16.82m. Moldovan market follows with an increase of 19% or RON 7.1m, accounting for 23% of the sales.

Cost of sales amounted to RON 96.7m, representing an increase of 13.2% YoY. Such an increase could be mostly attributed to RON 9.1m rise in cost of sales of wine. Such an increase was lower than the sales growth, which had a positive impact on the gross margin by 2.3 p.p., standing at 51.4%. Meanwhile, gross profit stood at RON 102.4m, representing an increase of 23.9%  YoY.

Turning our attention to SG&A, marketing expenses observed an increase by RON 5.3m, representing an increase of 38%. This increase was partially offset by 2% lower general and administrative expenses, which can be mostly attributed to lower rent payment.

In 2019, EBITDA amounted to RON 68.2m, representing an increase of 25.3% YoY. Such a result puts the EBITDA margin at 34.2% (+1.9 p.p. YoY). Operating profit amounted to RON  59.1m, representing an increase of 26%.

Purcari’s net financial result amounted to RON -6.8m, compared to RON 1.04m in 2018. Such a performance could be attributed to a net loss on equity instruments at fair value through profit or loss, of RON -0.2m, compared to RON 4.17m. As a reminder, the Group has 31.4% ownership interest in IM Glass Container Company, which is accounted as equity instruments at fair value through profit or loss.

In 2019 the Group recorded a net profit of RON 44.3m, representing an increase of 6.1% YoY. Such a result puts the profit margin at 22.2% (-2.6 p.p. YoY).