MIA generates record Q1 revenues

 

The MSE Equity Price Index remained virtually unchanged at 3685.35 points as the gain in BOV offset the declines in HSBC, MaltaPost, MPC and BMIT. Meanwhile, four other equities closed unchanged as the total trading activity was muted at just €0.08 million. Download today’s Equity Market Summary.

Malta International Airport plc traded flat at the €5.55 level across three trades totalling 2,160 shares. Following the close of today’s trading, MIA published a Quarterly Update providing information about its financial performance in Q1 2023. Revenue surged by 75% to €18.9 million compared to the same period in 2022, largely driven by the strong passenger movement figures in the first quarter of 2023 totalling 1.25 million, which also surpassed the previous record of 1.20 million passenger movements for the first quarter in 2019. Indeed, revenue in Q1 2023 was also 21.7% higher than the previous Q1 record of €15.6 million in 2019. EBITDA stood at €9.60 million compared to €4.46 million in Q1 2022 and €7.23 million in Q1 2019. The EBITDA margin also improved to 50.7% compared to 41.1% in Q1 2022 and 46.5% recorded in Q1 2019. After accounting for net finance costs of €0.21 million and tax charges of €2.28 million, MIA reported a net profit for Q1 2023 of €4.17 million, compared to €0.70 million in Q1 2022 and €2.87 million in Q1 2019. Meanwhile, in terms of financial position, MIA remained free from any bank borrowings whilst cash and cash equivalents increased by a further 8.2% to €74.3 million compared to €68.7 million as at the end of 2022, despite the company’s commitment to continue investing heavily in its facilities and infrastructure.

Also among the large companies by market value, GO plc retained the €2.94 level over three deals totalling 1,800 shares. Last Friday, GO published an updated Financial Analysis Summary which included forecasts relating to the Group’s telecoms operations in Malta for the current financial year. Revenues are expected to increase by 3.2% to €133 million principally reflecting higher average revenue per user (ARPU) and further growth in the provision of hardware and equipment complemented by the provision of maintenance and telecom services. However, EBITDA is anticipated to drop by 3.1% to €52.5 million as the marked increase in direct costs and administrative expenses to €80.4 million (2022: €74.6 million) is expected to outweigh the increase in revenue. As a result, the net debt to EBITDA multiple is forecasted to increase to 2.24 times compared to 2.06 times in the 2022 financial year. Furthermore, the interest cover is expected to ease to 13.3 times from 16.2 times in the previous year.

Similarly, Mapfre Middlesea plc and Loqus holdings plc held on to the €1.66 and €0.20 levels respectively, albeit on trivial volumes.

Malta Properties Company plc declined by 2.5% to the €0.394 level on a single trade of 2,000 shares. Last Friday, MPC published an updated Financial Analysis Summary. In 2023, revenues are expected to surge by 18.9% to a record of €5.02 million driven by higher rental income from the MPC’s property portfolio. In view of the strong growth in revenues, EBITDA is anticipated to increase by 18% to €3.25 million (2022: €2.75 million). The interest cover is expected to decline minimally to 2.70 times compared to 2.78 times in the previous year. In terms of financial position, total assets and total liabilities are expected to decrease minimally to €99.2 million and €43.6 million respectively, with total equity forecasted to remain practically unchanged at the €55.6 million level.

MaltaPost plc fell by 2.1% to a four-week low of €0.46 over two deals totalling 8,695 shares.

BMIT Technologies plc moved 0.5% lower to the €0.43 level across two trades totalling 11,765 shares.

HSBC Bank Malta plc shed 0.9% to the €1.09 level as 10,766 shares changed hands.

In contrast, Bank of Valletta plc gained 0.9% to the €1.11 level after recovering from an intra-day low of €1.08 (-1.8%) across volumes totalling 35,718 shares.

The RF MGS Index decreased by 0.21% to 879.628 points. Today, the European Commission published the Spring 2023 Economic Forecast which showed that inflation in the eurozone will be higher in 2023 and 2024 at 5.8% and 2.8% respectively compared to the Winter 2023 Economic Forecast estimates of 5.6% and 2.5% respectively. Eurozone inflation is expected to ease to the 2% level in 2025. Furthermore, Malta’s projected inflation figure for 2023 was increased by 1.1 percentage points to 5.4% when compared to February’s forecasts but still expected to move down to 2.8% in 2024.

 

This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.