After five months of negotiations, Unicaja and Liberbank have decided not to merge and to continue apart. Liberbank has announced that its Board has concluded that the contacts with Unicaja on a possible merger are over after not being able to reach agreement on the share of shares in the new entity.
Labour leader Jeremy Corbin is considering the nationalisation of the UK’s energy transportation and distribution lines, offering Treasury bonds as compensation to their owners, but at below market valuation. If this new energy policy was put into effect it would have a significant impact on Iberdrola.
Bankinter | DIA´s Q119 results show a very negative evolution in its business. The following stand out: income 1.6646 Bn € (-7.2%), EBITDA 12.4 M€ (-77.7%), EBIT -119.9 M€ (vs -6.1 M€ in Q118) and losses of -144.4 M€ (vs -16.2 M€ in Q118). On 26 April DIA had already published an advance of the preliminary results for Q119. It anticipated sales of 1.615/1.715 M€ vs 1.793 M€, an EBIT of -115/-125 M€ and net annual profits of -140/-150 M€.
Renta4 | Aena has published the traffic statistics for Spanish airports in April, where we continue to see how it remains well above the annual forecast of +3.7%, being for the year so far at +6.1%.
Alphavalue | Telefonica´s poor figures for Q119 traded with falls of 31%. Sales of 11.98 Bn€ › 11.81 Bn€ estimated by the consensus. Our analysts highlight that the operator improved income in all the geographic areas where it is present, especially in Spain and Brazil, its two main markets.
Banc Sabadell | IAG results in Q119 in line with expectations in EBIT and better in financing post tax profits: Sales: 5.318 Bn€ (+5.9%); EBIT: 135 M€ (-51.8%); post tax profits: 70 M€ (-66%). Sales evolved slightly below expectations (-0.7% vs BS expected) affected by unitary passenger income after currency change which fell -1.4% (vs -1% BS expected). Thus was compensated by unitary non-fuel costs which fell -0.6% at constant exchange rates (vs 0% BS expected). This poor income performance contributes a certain negative trend.
Renta 4 | Repsol Downstream investors’ day showed not only the firm’s resilience but also its capacity for future growth. We recall that within its growth target for operational cash flow from 4.6 Bn€ in 2017 to 6.5 Bn€ in 2020 at 50%/b, Downstream cash flow would grow 800 M€: 300 M€ from international margins, 200 M€ from improvements in profitability from greater efficiency and 300 M€ from expansion and new low carbon business preparing for the energy transition.
Renta4 | According to media reports, the Spanish electricity company is in preliminary conversations with Neoelectra and SDCL to sell its electricty co-generation business in Spain, where it has 19 plants producing 368 MW.
Renta 4 | The results have exceeded forecasts for income (+1% vs R4e and consensus) and have missed those of the consensus for EBITDA excluding the impact of IFRS 16 (+414 M€) and extraordinary payments (+120 M€ vs +100M€ foreseen) by -3%, while remaining slightly above ours (+0.5%).
Morgan Stanley | One of the main calls of our retail analyst Geoff Ruddell (and outside the consensus) is to short Inditex. There is no doubt that Inditex is a high quality and well-managed business with an impressive track record. However, this is all already in the price and with stores in countries which represent 95% of global GDP, it has already reached its maturity point and its capacity for…