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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
COMMUNICATIONS
Rating: Baa2/BBB+
- Elisa report Q2 results tomorrow; BBG consensus is looking for rev +0.8%, EBITDA +3.9%, FCF -11%. Q1 results in mid-April were broadly in line; revenue was -1% YoY though this was largely due to disposals with service revenue +6% YoY while EBITDA was +4% YoY.
- Equity has slightly underperformed SXKP since then at +6% vs. +10%; spreads have performed well though (EUR 29s ~20bps tighter vs. ~6bps tighter for €IG). Elisa’s curve offers decent rolldown compared to Scandi peers for quite a stable profile though liquidity is poor with only three EUR 300mn lines in play.
- Elisa was affirmed by Moody’s in Sept where they noted solid credit metrics with gross debt/EBITDA at 1.8x (against thresholds of well below 2x and above 2.5x) and RCF/gross debt ratio at 21% (against thresholds of above 30% and trending towards 20%) though they were marked negatively on their generous dividend policy.
- Headline metrics have all been stable in recent periods. Elisa’s reported leverage sits at 1.7x (vs. 1.5-2x target) with an equity ratio of 43.8% (vs. >35% target). Historically disciplined CapEx, a consistent dividend policy (albeit high at 80-100% of prior year net profit which often means just under half of EBITDA) and a lack of meaningful strategic changes expected under the new CEO support a stable cash-flow outlook though also limit any potential ratings momentum.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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