Alerts
GLO Hits and Beats Expectations
Adrian Alexander Yu
GLO 3Q19 core profits rose by 20% y/y to Php5.8Bil. This brought 9M19 profits to Php17.9Bil, up 20% y/y accounting for 84.0% of COL and 83.0% of Consensus, ahead of estimates. The outperformance was driven by continued strong performance of GLO’s service revenues, which increased by 12.9% during 9M19, accounting for 75% of our FY19 forecast. GLO’s 9M19 EBITDA also rose by 17.4% y/y to Php57.9Bil driven by a 260bps improvement in EBITDA margin to 52.9% as total operating expenses including subsidy only rose by 8% y/y, slower than the 13% topline growth. This is also ahead of estimates, accounting for 77.3% of COL and 78.2% of Consensus’ full year estimates. We will release a more detailed report on GLO following the analyst briefing. We currently have a HOLD recommendation on GLO with a FV estimate of Php2,100/sh.
GLO news 5 years ago
X acquires Wavemaker Partners US
Adrian Alexander Yu
X acquires 100% equity interest in Wavemaker Partners US, a venture capital management firm based in Los Angeles with approximately US$210Mil of assets under management (AUM) at a purchase price of approximately Php170Mil. The deal will be paid for in cash, while the General Partners of Wavemaker US will also subscribe to a total of 1.7Bil shares of X for approximately 48% stake in the listed technology firm at a subscription price of Php0.10/sh. The transaction is expected to be completed by 1Q20, pending satisfaction of certain conditions and securing shareholder approvals. As an effect of this transaction, there might be dillution.
X news 5 years ago
Justin Richmond Cheng, CFAPIZZA buy 13.90
John Martin Luciano, CFA
Due to our higher FV estimates resulting from the rollover to 2020, we upgraded our recommendation on CIC and PIZZA from HOLD to BUY. We are maintaining our recommendation on the rest of the stocks in our coverage list, although capital appreciation potential has increased.
PIZZA Rating 5 years ago