GO plc reports improved EBITDA margins in H1 2024

The MSE Equity Price Index rose by 0.49% to a five-month high of 3,848.317 points as the gains in GO, FIMBank, IHI, MPC and M&Z outweighed the declines in APS, BMIT, Harvest, VBL and the ordinary shares of RS2. Meanwhile, three other equities closed unchanged as today’s trading activity in local equities amounted to €0.15 million. Download today’s Equity Market Summary.

GO plc moved 3.4% higher to a two-month high of €3.00 across eight deals amounting to 13,600 shares. Today GO published its interim results covering the six-month period ending 30 June 2024. Revenues fell by 5.8% to €113.5 million (H1 2023: €120.5 million) and total operating costs (net of other income) decreased by 5% to €96.8 million, both largely reflecting the anticipated reduction in hardware sales. As a result, operating profit contracted by 10% to €16.8 million. Excluding a depreciation and amortisation charge of €27.6 million, EBITDA decreased by 2.0% to €44.4 million (H1 2023: €45.3 million). Nonetheless, the EBITDA margin rose to 39.1% compared to 37.6% in the first half of 2023, reflecting the decrease in hardware sales which attract lower margins. After accounting for net finance costs of €4.1 million, a realised gain on equity investments of €1.7 million, a tax charge of €4.9 million, as well as non-controlling interests of €0.5 million, the net profit for the period attributable to shareholders amounted to €8.9 million (H1 2023: €8.7 million) translating into an annualised return on average equity of 21.1% (H1 2023: 18.6%). The Directors of GO plc declared a net interim dividend of €0.05 per share, compared to last year’s interim dividend of €0.07 per share. The dividend represents a payout ratio of 56.9% (H1 2023: 81.4%) and is payable on Friday 30 August 2024 to all shareholders as at the close of trading on Tuesday 13 August 2024.

Also among large companies by market value, International Hotel Investments plc surged by 9.8% to an almost two-month high of €0.45 across three trades totalling 25,000 shares.

FIMBank plc moved 0.5% higher to the USD0.20 level after recovering from an intraday low of USD0.163 (-18.1%), albeit over trivial volumes.

Malta Properties Company plc rose by 6.1% to the €0.35 level on two deals totalling 5,400 shares. Yesterday, MPC published the interim statements for the six-month period ended 30 June 2024. MPC’s revenue rose by 19.4% to a record €2.86 million driven by additional rental income from the Mediterranean Building in Ta’ Xbiex and the Exchange in Spencer Hill in Marsa as well as rental rate increases linked to inflation. The growth in revenue well outweighed the increase in expenses which resulted in a record operating income of €2.17 million compared to €1.82 million in the previous year. After considering net finance costs amounting to €0.51 million and a tax charge of €0.5 million the net profit for the period reached €1.15 million representing a more than 70% increase from the €0.67 million reported in the corresponding period last year, resulting in an annualised return on average equity of 4.2%.

M&Z plc moved 4.4% higher to the €0.59 level on a single trade of 1,100 shares.

On the other hand, the ordinary shares of RS2 plc slumped by 3.2% to a multi-year low of €0.75 as 10,500 shares changed hands.

VBL plc slumped by 11.5% to a three-month low of €0.20 on muted activity.

APS Bank plc shed 1.0% to the €0.505 level on one trade of 10,000 shares.

BMIT Technologies plc declined by 2.9% to the €0.33 level over four deals totalling 29,960 shares.

Harvest Technologies plc moved 1.0% lower to the €0.97 level over five deals amounting to 11,900 shares. Yesterday, Harvest published the interim financial statements for the six-month period ending 30 June 2024. Harvest generated a net interim profit of €0.61 million compared to €0.18 million in the corresponding period last year. The directors announced a net dividend of €0.03 per share payable on 30 August 2024 to all shareholders as of the close of trading on 14 August 2024.

Meanwhile, Malta International Airport plc traded flat at the €6.00 level across seven trades totalling 5,458 shares. Last week, the Board of Directors declared a net interim dividend of €0.06 per share, which is double the interim dividend paid in 2023. The dividend is payable by not later than Friday 13 September 2024 to all shareholders as at the close of trading on Tuesday 20 August 2024.

Also among large companies by market value, Bank of Valletta plc closed unchanged at the €1.64 level after recovering from an intraday low of €1.61 (-1.8%) over eight deals totalling 18,050 shares.

Santumas Shareholding plc held the €1.30 level on a single trade of 153 shares.

Today, Malita Investments plc announced that its Board of Directors is scheduled to meet on Wednesday 28 August 2024 to consider the approval of the interim financial statements for the six-month period ended 30 June 2024. The Directors will also consider the payment of an interim dividend.

The RF MGS Index remained relatively unchanged at 902.549 points notwithstanding a further decline in benchmark 10-year German Bund yield. Meanwhile, data released today confirmed that inflation during July in Germany was 2.6%, rising from 2.5% in the previous month as the above-average increase in service prices outweighed the decrease in energy prices.

This report contains only public information and is not to be construed as investment advice or an offer to buy or sell 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