Telefónica Tech will buy 100% of Incremental, a partner of Microsoft in the UK, for up to £175 (around 209 million euros). With this acquisition, Telefónica Tech will considerably increase its scale in the UK and its offer of Microsoft technologies. Incremental has its headquarters in Glasgow, another 3 offices in the UK, in Bulgaria and India. The company was founded in 2016 and has had strong growth rates both…
Morgan Stanley | The figures are not available in all areas but we estimate that the telecos’ exposure to the spike in energy costs for the marjority of the stocks is around 1-2% of sales (on average). To give a more complete view, using as a reference the margins and Capex, for an operator with an EBITDA margin of 38% and Capex of 19%, a cost of energy x2 would…
Bankinter | IAG will grant Globalia a 100 million euros loan. At some point in the future, it could convert that into an up to 20% stake in Air Europa. This loan will give Iberia exclusivity in negotiations. Analyst team’s opinion: Neutral impact. On the one hand, this provides Iberia with more time to reach an agreement and block the entry of a third party. In practice, it implies putting…
Bankinter | The company has decided to postpone sine die its Investor Day, during which it gives an update on its earnings outlook, dividend and strategic coordinates. This year’s Investor Day was set for Tuesday 22nd March. The company is maintaining current estimates for its future performance. Analyst team’s opinion: Iberdrola’s decision to postpone its annual meeting with investors is logical. The group is facing a high level of uncertainty…
Inditex posted net profit of 3.243 billion euros in its fiscal year 2021, up 193% from a year earlier, when its earnings were hit by the Covid-19 pandemic. The figure was still 11% below the 3.639 billion euros recorded in 2019. Total sales at the Zara owner rose 36% to 27.716 billion euros year-on-year, while online sales increased by 14% to 7.5 billion euros, 25.5% of the total in 2021….
Fernando Rodríguez | The market for Private Equity in Spain clocked up a new historical record of activity in 2021, after two years of declines in investment volumes due to the Covid-19 pandemic. According to data from Mergermarket included in the report from the legal firm Cuatrecasas “Market Trends in Iberian Private Equity Transactions”, the sector turned over 52.220 billion euros in Spain last year. This was 87% more in…
Bankinter | Mapfre has delayed its Investor Day (planned for 23 March) to the beginning fo the summer. Whatsmore, it is presenting a new strategic plan 2022-2024, although it warns that this is susceptible to revision. The strategic lines are: Spain, Brazil and the US as its main markets, average premiums growth of +5%/+6%, ROE 9%/10%, combined ratio 94%/95%, solvency 200% and a payout superior to 50%. Analysis team’ opinion:…
Renta 4 | Deutsche Telekom would apparently be interested in accelerating the sale of its mobile telephone towers in Europe, with the aim of cutting debt. There are 40,600 towers (30% of Cellnex’s towers including BTS growth programmes). The price, according to press reports, could be around 18 billion euros (>60% of Cellnex’s current market cap). Amongst possible suitors would be Cellnex’s competitors like American Tower. It already has a…
Morgan Stanley | According to Bloomberg, Acerinox stopped foundry operations at its Cadiz stainless steel plant last night and has launched a licensing plan due to high energy prices. The article flags that the company could consider leaving other parts of the plants idling, such as the hot and cold rolled mills. We believe this move highlights the increasing energy challenges in Europe. That said, we think that Acerinox may…
Morgan Stanley | ArcelorMittal has announced the acquisition of the steel recycling firm, John Lawrie Metals, for an as yet undisclosed price. The transaction is part of the former’s strategy to increase the use of scrap steel to reduce the emissions from its steel operations. The company which has been bought operates 4 sites in Scotland which recycle steel for the UK’s oil and gas industry, with a total capacity…