Daily Market Highlights (12.05.2023)

GO and MPC publish forecasts


The MSE Equity Price Index extended yesterday’s gains as it increased by a further 0.29% to 3,685.315 points. The gains in BOV, MIA, and BMIT outweighed the declines in PG and VBL while four other equities closed unchanged. Overall trading activity amounted to €0.13 million. Download today’s Equity Market Summary.

Today, GO plc 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.

Malta Properties Company plc also 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 this respect, MPC explained that the forecasts take into consideration the first full-year rental income from the Zejtun Exchange and the expected income from the Marsa Spencer Hill property during the second half of the year. These income streams are expected to outweigh the loss of income from the Birkirkara Exchange which was sold in 2022 and few months of vacant space expected at the Mediterranean Building in Ta’ Xbiex. 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.

Malta International Airport plc closed 0.9% higher at the €5.55 level after recovering from an intraday low opening price of €5.45 (-0.9%) as 6,555 shares changed hands.

Similarly, BMIT Technologies plc advanced by 0.5% to the €0.432 level across 3 trades totalling 44,400 shares.

Bank of Valletta plc gained 1.9% to the €1.10 level, albeit on lacklustre volumes.

Also in the banking sector, Lombard Bank Malta plc closed unchanged at the €1.00 level after failing to hold on to an intraday high of €1.01 (+1%) as 57,895 shares changed hands.

Simonds Farsons Cisk plc closed unchanged at the €7.00 level after recovering from an intraday low of €6.75 (-3.6%) across four trades totalling 534 shares.

In the property sector, AX Real Estate plc (5,000 shares) and Hili Properties plc (33,000 shares) retained the €0.45 and €0.228 levels respectively.

On the other hand, VBL plc dropped by 3.8% to the €0.21 level on a single deal of 5,000 shares.

PG plc shed 1% to the €1.94 level on trivial volumes.

The RF MGS Index eased by 0.03% to 881.469 points. France’s annual inflation rate in April increased by 0.2 percentage points, mainly resulting from an increase in energy prices. Meanwhile in the US, the University of Michigan consumer sentiment reading plunged to a six-month low amid renewed concerns about the economic outlook.


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.