Deutsche Bank | Redeia will publish its first quarter results on 29 October. Excluding Hispasat, we see moderate growth in EBITDA and net profit, with EBITDA up 3% year-on-year to €951 million (€923 million last year) and net profit up 1% to €392 million (€389 million last year). We note that, given the way Redeia presents its results, eliminating the two-year lag, this already reflects an expected increase in the permitted return on capital to 6.46%. Based on the results obtained, we expect a 4% decline (€409 million last year). We expect net debt of €5.99 billion. We expect the company to reiterate its forecasts for the fiscal year of EBITDA in excess of €1.25 billion and net profit in excess of €500 million, although we believe that the results will be close to these figures rather than significantly exceeding them.
Buy. PO of €14 compared to the last close of €16.84.
