BMIT reduces dividend despite growth in operating profit

The MSE Equity Price Index remained virtually unchanged at 3,889.606 points as the declines in six equities were largely offset by the gains in BOV, GO, HSBC, and Malita. Meanwhile, two other equities closed unchanged as today’s trading activity amounted to €0.15 million. Download today’s Equity Market Highlights.

BMIT Technologies plc fell by 8% to the €0.322 level across eight deals totalling 88,455 shares. Today, BMIT published the 2024 annual financial results. Revenues increased by 17.2% (or €4.9 million) to a record of €33.6 million reflecting the first full year of income amounting to €4.0 million from the management of the mobile network towers purchased from GO in December 2023 and the 9.2% growth in revenue from data centre and related services to €27.5 million, which offset the decline of 33.2% from sales of hardware and licenses to €2.1 million. Operating profit (EBIT) climbed 12.9% higher to €9.02 million, however since expenses increased at a sharper rate than revenues, the EBIT Margin dropped to 26.9% from 27.9% in the previous year. Nonetheless, excluding depreciation and amortisation charges of €3.7 million, EBITDA surged by 26.7% to €12.7 million and the EBITDA margin improved to 37.8% compared to 35.0% in 2023. Net finance costs amounted to €1.8 million compared to €0.35 million in the previous year, reflecting the additional borrowings for the acquisition of the mobile network towers. The net profit amounted to €4.17 million (-11.7%), which translates into a return on average equity of 35.4% (2023: 43.2%). The Directors of BMIT are recommending the payment of a net dividend of €4.0 million, which is 20% lower than last year and corresponds to a payout ratio of 96% (2023: 106%). The net dividend per share amounts to €0.0189 which is 23% lower than the previous year, partly reflecting the impact of the additional outstanding shares due to the scrip issue in June 2024. The dividend will be payable to all shareholders as at close of trading on Thursday 15 May 2025, who will have the option to receive the dividend either in cash or in new ordinary shares at an attribution price of €0.319 per share.

AX Real Estate plc shed 2.0% to a fresh three-month low of €0.402 across seven deals totalling 22,600 shares.

The ordinary shares of RS2 plc declined by 2.3% to a multi-year low of €0.42 on a single trade of 10,000 shares.

Lombard Bank Malta plc plunged by 5.1% to the €0.745 level on one deal of 4,502 shares.

Malta Properties Company plc (-3.9%) and Simonds Farsons Cisk plc (-1.6%) dropped to the €0.348 and €6.20 levels respectively on muted activity.

Malta International Airport plc held the €6.00 level on trivial volumes.

APS Bank plc traded flat at the €0.62 level on two trades amounting to 2,382 shares. The Board of Directors of APS is scheduled to meet on Thursday 13 March 2025 to consider the approval of the financial statements for the financial year ended 31 December 2024. They will also consider the declaration of a dividend, subject to regulatory approval.

Bank of Valletta plc increased by 1.0% to the €1.96 level across five deals amounting to 12,684 shares. The Board of Directors of BOV is scheduled to meet on Wednesday 26 March 2025 to consider the approval of the financial statements for the year ended 31 December 2024. The Directors will also consider the declaration of a final dividend.

Also in the banking sector, HSBC Bank Malta plc moved 0.6% higher to the €1.57 level over six deals totalling 36,770 shares.

GO plc advanced by 0.8% to the €2.62 level on one trade of 500 shares. GO’s Board of Directors is scheduled to meet on Wednesday 16 April 2025 to consider the approval of the financial statements for the year ended 31 December 2024. The Board will also consider the declaration of a final dividend.

Malita Investments plc moved 1.0% higher to the €0.53 level across four deals totalling 32,033 shares.

The RF MGS Index fell by 0.09% to 900.882 points reflecting the continued surge in euro area sovereign bond yields, particularly towards the longer end of the yield curve. The developments regarding US trade tariffs continued to fuel fears of recession with implications across all other major economies.

Today, the Central Bank of Malta published its latest economic forecasts which showed that Malta’s economic growth is expected to amount to 4.0% this year, which is 10 basis points higher than earlier estimates. Meanwhile, the real GDP growth is forecasted to ease to 3.3% in 2027, which is 10 basis points lower than past estimates.

 

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.