Schibsted and Telenor led on Oslo Børs. The main index performed better than the major European exchanges, and joined at its highest level so far in 2016.
Schibsted A-shares rose 6.92 percent to 262 kroner on the Oslo Stock Exchange after the company presented the figures second quarter. The stock was at a time up eight percent.
– Based on today’s report was eight percent slightly higher than what I had thought. But Schibsted supplies where they will deliver. It’s nice, solid growth in all the key classifieds the sites. Moreover hinted it to Schibsted at least not have to spend more money on space. I would rather say a little less than they have been talking about in recent quarters, said Carnegie analyst Preben Rasch-Olsen TDN Finans.
He points out ebitda growth in Norwegian and Swedish media as gratifying.
– We have had three years of downward estimate trends, because media houses have made it so weak. Now we come to the breakpoint where online overcomes the negative trend of print. Then begins the estimates from this business at least stabilizing, he said.
– The Media is no longer a dying business
Rasch-Olsen emphasizes that the value of media houses admittedly modest compared with classified operations.
– But it is always positive to see that measures leading to recovery. Not least that one begins to get a solid amount of digital subscriptions. Media houses are no longer a dying business, but something that will actually provide good cash flow going forward, he said.
He has buy recommendation on the stock, with target price 308 million.
Analyst Henriette Trondsen in Arctic Securities said TDN Finans that the current price volatility is a nod to the report.
– the quarterly figures were better than we and consensus expected, driven by Blocket and classifieds international and Norwegian media. Blocket ebitda was 10 percent above consensus and two percent above our estimates due to lower marketing costs, but I expect that these coming up in the second half, since Schibsted not got through inhibition transaction, she said.
Trondsen waiting to make smaller, positive changes in estimates and likely retain buy recommendation, depending on the current exchange reaction.
– We have a buy recommendation with price target 290 million shares. Capital Markets Day in September will be the next trigger for the stock, she said.
Schibsted a-share ended up 6.92 percent to 262 kroner, sold for 31 million.
Telenor delivered better than waiting
Telenor’s shares rose 4.38 per cent and contributed most to the increase on the Oslo stock Exchange, having put forward a higher ebitda for the second quarter than the market expected.
Telenor enlightened Tuesday it will not participate in the upcoming spectrum auction in India. The company justifies the decision that the proposed price level will not be able to provide acceptable returns, as Telenor sees it.
CEO Sigve Brekke would not say what options the company looks at to possibly get more spectrum in India, but refers to that it is possible to buy spectrum from existing players.
– should we invest more in India, we must have good returns, and prices in this auction was too high. Meanwhile, we take step by step, says Brekke TDN Finans.
SEB analyst Fredrik Thoresen says to TDN Finans that he believes the probability that Telenor will leave India have increased, and that this be interpreted positively in the market .
Also Pareto highlights the decision as positive, and expects overall making small positive adjustments to our estimates after the report.
– positive company
Nordea Markets draws Additionally stated that its investment guidance could increase cash flow significantly.
“We are still positive for the company,” writes Nordea.
Thoresen think consensus ebitda estimates probably come up with around two percent for 2016 on the basis of the report and guiding. Pareto expecting an upward revision of around one percent.
Credit Suisse, which is negative to the Telenor share, points out that the company delivered organic growth of only one percent, and that sales in most segments was weaker than waited. This is partly due to lower sales of mobile phones, but the lower growth also raises the question whether it will be multippelnedjustering in the valuation of the stock.
Telenor ended up 4.38 percent to 148 kroner, traded 661 million, clearly most on the exchange.
the main index on the Oslo stock exchange ended up 0.90 percent to 624.90 points, the highest so far in 2016, sold for 2.75 billion.
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