In Q1, the company observed a 14% YoY increase in sales, increase in EBITDA of 12.4% and an increase in net income of 8.6%.

Key Financials (Q1 2019 vs Q1 2018) (HRK m)

As Ericsson Nikola Tesla published their Q1 2019 report, we are bringing you key takes from it. According to the report, in Q1, the company recorded sales of HRK 388.2m, which represents an increase of 13.8% YoY.  Of that, the domestic market accounted for 23.6%, services to Ericsson accounted for 65.1% (of which 10.1% is related to Managed Services in Croatia), while other export markets accounted for 11.3%.

Such an increase could be attributed to business expansion and gaining new responsibilities, primarily in 4G/5G. The company notes that their experts are engaged worldwide in numerous projects related to 5G, and in addition, part of 5G development takes place in the Company’s R&D Center.

The domestic market also recorded significant growth in sales revenue.  The company notes that Croatia’s leading operators remain focused on mobile networks modernization, the preparation for the introduction of 5G, and digital transformation projects. The revenue growth on the domestic market was also significantly impacted by the successful implementation of the State Border Control System of the Republic of Croatia.

Ericsson NT Sales Breakdown

In Q1, the company observed higher operating expenses by HRK 48.2m (+16%) which could be attributed to investments in the development and growth of Research and Development Center, and a significant increase in engagement and working capital on projects with the Group’s key customers.

Going further down the P&L, EBITDA amounted to HRK 58.3m, which represents an increase of 12.2%. Employee expenses and other operating expenses share in sales decreased which has positively influenced operating profitability. When observing the company’s EBIT in Q1, it observed a decrease of 2.2% YoY. The increase could be attributed to higher depreciation and amortization which increased by HRK 7.3m.

Despite a decrease in EBIT, Ericsson Nikola Tesla recorded an increase in net income of 8.6%, amounting to HRK 32.9m. The increase was partly caused by a better net financial result in Q1 2019, which amounted to HRK 0.96m, compared to HRK -1.4m in Q1 2018.

Key Financials (FY 2008 – FY 2018) (HRK m)

On the balance sheet, the company reported total assets of HRK 980.6m, which represents an increase of 17% YoY. This is mainly due to a significant increase in inventory and right-of-use assets. The level of inventory increased due to increased engagement on network modernization projects.

Turning our attention to the dividend payout, last week the company proposed a dividend of HRK 70.6 per share, which represents a dividend yield of 6%. Ex-date was set on 18 June 2019. To read more about the proposed dividend click here.

In total, 50 notes will be issued having the aggregate nominal amount of EUR 45m.

Following up on NLB’s invitation to subscribe subordinated Tier 2 notes, the company published a document in which they announced the final offering price and quantity of subordinated debt.

According to the report, the final offering price for the notes is equal to 99.10% of their nominal amount and amounts to of EUR 99,100 per note. The company notes that in total 50 notes will be issued having the aggregate nominal amount of EUR 45m. As a reminder, in the invitation, NLB stated that the nominal value of the subordinate Tier 2 notes issue would be up to EUR 75m.

To read more about the issuance of Tier 2 click here.

At the current share price, dividend yield is 4.8%, while the ex-date is 28 August 2019.

Luka Koper published a convocation of the General Meeting of Shareholders in which they proposed a dividend of EUR 18.6m to be paid to their shareholders. The proposed dividend would be paid out from the accumulated profit from 2018 and would translate to a dividend of EUR 1.33 per share. This would represent an increase of EUR 0.10 or 8% from the previous year.

At the current share price, the dividend yield is 4.8%, while the proposed ex-dividend date is 28 August 2019. The dividend should be paid out on 30 August 2019.

The company notes that this at the same time enables the Company to ensure intense development of port infrastructure and equipment and implement the port service provision strategy.

In the graphs below, we are bringing you the historical overview of the company’s dividend per share and dividend yield.