Friday, June 12, 2020
Fed’s decision on Wednesday to hold the key US interest rates unchanged inflicted losses on most European stock markets on Thursday; the Greek bourse followed suit, with its benchmark heading south for the third day in a row, on the lowest daily turnover in 11 sessions. General index ended at 644.90 points, shedding 2.68% from Wednesday’s 662.67 points.
The large-cap FTSE 25 index contracted 3.04% to 1,557.48 points. The banks index lost 6.26%, as National slumped 9.19%, Alpha fell 5.77%, Piraeus dropped 5.29% and Eurobank gave up 4.98%.
Sharp drop in international markets does not leave much room for optimism in today’s session. Volatily and wide negative price movements the scenario of the day.
Greece/Eurogroup: Eurozone finance ministers discussed and greenlighted yesterday, the sixth enhanced surveillance report and the release of €748mn in SMP/ANFA profits to Greece. Moreover, Eurogroup, did not discuss the deferral of Greece’s commitment of achieving a primary surplus target of 3.5% for 2020 and 2021.
Greece/Unemployment: Greece’s unemployment growth rate dropped slightly to 14.4% in March from the downwardly revised reading of 15.9% in February, seasonally-adjusted data from statistics office ELSTAT showed. In March 2019, the respective rate was 18.1%.
OPAP (Q1:20 CC key takeaways): OPAP held yesterday its Q1:20 conference call commenting on online business development and the impact in the three months’ lockdown. In more details:
§ Management stated that in the three-month period EBITDA remained positive thus in the Q2:20 the Group will post a positive underline figure. Before the lockdown and based network contributed the bulk of the GGR (c99%). In the lockdown period the picture was reversed with online gaming contribution reaching 79.3%. Note that GGR reduction is estimated to 96% in the lockdown. After the lift of restrictions there is a gradual return to the pre-covid status with land based GGR contribution at 95.8%.
§ Cost savings efforts are seen better that the initial estimate in FY:19 CC (€4.5m) coming at €7.5m per month related to IT, Marketing and other. CapEx is also seen lower the initial €25m estimate while any other potential interim/ordinary dividend/capital return distribution should be excluded within 2020. Note that OPAP has a €163.4m payment to Stoiximan shareholders before the end of the year which will require to build and maintain cash given the 0.30 eur/share dividend distribution in July.
§ Stoiximan transaction (51% of the Greek Cypriot operations) is expected to take place in the next few weeks. In Q1:20 Stroiximan generated 82.3m vs. 50.5m a year ago with casino revenues soaring 91% vs. Q1:19. Customer base is now at 194K, flat vs. Q4:19 and up from 148K in Q1:19.
§ In the Online business active players are now 201% up vs. the pre-lockdown period at 105.5K per week. Joker online penetration reached 10.4% vs. 2.9% in 2019.
§ With regards to debt OPAP said that secured a bridge loan to finance the call of the €200m corporate bond. Subject to market conditions OPAP is aiming to relist a corporate bond while it came to an agreement with banks with regards to specific EBITDA covenants for H1:20.
§ Management also commented that various restrictions and changes in consumer behavior (i.e. lower visiting time in OPAP shops) seems to affect negatively turnover.
§ Overall we see a positive response to a very challenging environment, OPAP’s EBITDA posts a resilient performance and the online business gains momentum as OPAP extends its customer base.
The following table summarise Q1:20 results:
B&F: The company will report FY’19 financial results on June 25. AGM scheduled for July 15.
OTE: On June 10, the company bought 54,775 own shares at €12.1122/share for a total consideration of €663.447. OTE now controls 3,608,711 total shares or 0.768% of share capital.
TERNA ENERGY: On June 9, the company bought 48,523 own shares for a total consideration of €457.125K (€9.42 avg price per share).
MYTILINEOS: On June 10, the company bought 55,000 shares at €7.9090/share for a total consideration of €434.997K. Treasury stock now amounts to 410,000 shares or 0.2869% of share capital.
FOURLIS: On June 10, the company bought 4,748 own shares at €3.8097/share for a total consideration of €18.088K. Fourlis now commands 437,402 own shares or 0.8411% of share capital.
BRIQ PROPERTIES: On June 10, the company bought 3,000 own shares at €1.701/share (total amount consideration €5.1K).
LOULIS MILLS: The company goes ex gross dividend FY’19 €0.07/share (net €0.0665/share) as of today.
IASO: The company trades ex dividend gross €0.04/share from previous years undistributed profits (net €0.038/share).
AUTHELLAS: Major shareholder Mr Vassilakis purchased 20K shares (through Main Stream SA) for a total consideration of €80.2K
NIREUS: As of today and following the approval of the request of the company ANDROMEDA for squeeze out right, the trading of the shares of the company on ATHEX cease trading.
SELONDA: As of today and following the approval of the request of the company ANDROMEDA for squeeze out right, the trading of the shares of the company on ATHEX cease trading.
KARATZIS: As of today and following the approval of the request of the company ANTKAR SA for squeeze out right, the trading of the shares of the company on ATHEX cease trading.
INTRALOT: The company appointed new USA CEO
ENTERSOFT: AGM scheduled for July 7th.
MIG: Deadline for the submission of binding bids for the sale of Singular subsidiary expires today.
IKTINOS (FY 2019 results): AGM scheduled for July 3. No FY’19 dividend distribution. Net Debt up by 20.7% to €40.28mn (€33.36mn in FY’18).
- Manos Chatzidakis – Head of research
29 Alexandras Avenue
Tel: +30 210 6478755/754
Fax:+30 210 6410139
Email: [email protected]
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