Renta 4 | We made a change in the Portfolio letting Telefónica (TEF) go, and MásMóvil (MAS) in, since the second has a much higher revaluation potential supported by its greater growth, double digit in revenue and expanding its operating margins, estimating that it will continue to be the operator with the highest share in the coming years.
The broadband market continues to grow in Spain: 31% penetration in Spain vs. 42% on average in other European countries, analysts at Morgan Stanley point out.
MasMovil has closed a new agreement with Orange which includes both the mobile network (including 5G and extending it to 2028/2033) and Fibre to Home – FTTH – (including an additional 5.2 M UI) and at the same time has updates its estimates (2019/2020) extending them to 2021.
Santander Corporate & Investment | In 1Q19, MásMóvil (MAS) registered 140,000 new net subscribers in fixed broadband (compared to expectations of less than 100,000 for the entire market) and the trend in 2Q19 remains solid, considering fixed ports, suggesting no less of 100,000 net connections in 2Q19 and implies a risk of upward deviation for the scenario that we handle of 350,000 net connections in 2019E.
Renta 4 | On 13 June the Ibex´s Technical Advisory Committee will hold a routine meeting. If we look at the volumes traded over the last 6 months, MasMovil is a clear candidate to enter.
José Benito de Vega | MasMovil has traded in the continuous market since July 2017, although it has done so since April 2012 in the alternative stock market. Since it began to trade in the continuous market it shares have doubled in value, even though during the last year it had seen ups and downs, falling 25% in the last 12 month compared to a fall in the Ibex of 3% in the same period.
This Thursday, 7 March, the Technical Advisory Committee of the Ibex 35 (CAT in tits Spanish acronym) will hold its routine meeting. On this occasion, it could include MasMovil in the index. The company’s trade volume is far higher than that of other members of the index. Among them, from less to greater volume, Tecnicas Reunidas, Indra, Viscofan or Meliá.
The Spanish competition regulator (CNMC – which regulates telecommunications in Spain) has published market data for December 2018.In the opinion of analysts at Santander Research, this is the best news in Spain’s telecommunications market data in December, “given that during the previous 18 months, customer turnover grew continuously yoy.”
Gigas is a Spanish multinational of storage and information technology trading on the MAB. The company’s market capitalisation is €19 M. This year their revenues will be up 35% and profits by 126%, without considering any possible corporate deals. “People think the MAB is a secondary market, but it’s an alternative one, for companies which are expanding. In the Continuous Market, there’s hardly any company doing this in the explosive sense,” says Diego Cabezudo, CEO at Gigas.
“The MAB doesn’t function in Spain at the moment and it needs to. If not, Spain will be left behind. I don’t know whether we should join forces with other markets, or if the ICO should distribute part of its investment to venture capital funds specialised in these kind of companies, or whether the adminstrative procedures should be cheaper and simpler.”