Back to the complete issue
Wednesday, 14 August 2019

Earnings watch: Sodic, EFG Hermes, MNHD, Telecom Egypt

EARNINGS WATCH- Sodic net income grows 9% y-o-y in 2Q019, revenues double: Sodic recorded a 9% y-o-y increase in net income to EGP 175 mn in 2Q2019, the company said in an earnings statement (pdf) on Thursday. Revenues for the quarter doubled y-o-y to EGP 1 bn as net contracted sales grew 11% growth to EGP 1.4 bn. Revenue growth was driven mainly by deliveries in the Villette project, which contributed to 44% of the delivered value during the quarter. Sodic released EGP 2 bn-worth of new launches to the market during the first six months of 2019. These were mainly in the Allegria Residences, EDNC and V residences, which together accounted for 70% of the new launches. “The launch plan for the year is heavily weighted to the second half with Al Yosr and the 500 acre coming online towards the end of the year,” the company said. Net contracted sales in 1H2019 dipped slightly to EGP 2.3 bn from EGP 2.5 bn in the same period last year.

EFG Hermes net income surges 49% y-o-y in 2Q2019: EFG Hermes reported net income of EGP 304 mn in 2Q2019, up 49% y-o-y from EGP 203 mn a year earlier, the investment bank said in its earnings release (pdf). Revenues rose 13% y-o-y to about EGP 1 bn during 2Q2019. The surge in profits came on the back of revenue growth in its non-banking financial businesses, a single digit increase in operating expenses, and lower taxes.

Tanmeyah boosting revenues: Fees and commissions, which represented 75% of revenues during the quarter, rose 15% y-o-y to EGP 784 mn, driven by growth in its microfinance outfit Tanmeyah. Revenues in its non-banking financial business rose 73% y-o-y during the quarter to EGP 322 mn, with Tanmeyah’s revenues growing 83% to EGP 275 mn. Sell-side revenues increased 4% y-o-y to EGP 364 mn in 2Q19 on higher brokerage revenues. This came in spite of a 17% y-o-y fall in investment banking revenues due to a stronger comparable quarter. Buy-side revenues declined 31% y-o-y to EGP 98 mn in 2Q19 as asset management revenues declined on lower incentive fees.

Real estate developer Madinet Nasr Housing & Development (MNHD) reported net income of EGP 511.3 mn during 1H2019, down 13% y-o-y, the company said in a bourse filing (pdf). Revenues also fell 14.1% y-o-y during 1H2019 to EGP 1.1 bn, due to postponing the launch of new phases in Taj City to 3Q, the company said in its earnings statement (pdf).

Telecom Egypt’s profits plunge 60% y-o-y in 2Q2019: State-owned carrier Telecom Egypt reported net income of EGP 516 mn 2Q2019 profits, a 60% fall from EGP 1.3 bn a year earlier, the company said in its earnings statement (pdf). The company blamed the implementation of its early retirement program for the drop in profits. Excluding the program, net income would have come in at EGP 1.3 bn on the back of forex gains that concealed the decline in investment income from Vodafone. Revenues grew 24% y-o-y during 1Q2019 to EGP 6.6 bn.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.