Net Insight
Net Insight - Transformation underway (ABG Sundal Collier)
2020-07-21 14:36
Q2 fairly in line with expectations, ScheduALL profitable
Markets to gradually improve in Q3
1.8x ‘21e EV/sales and 30% of market cap in net cash
Q2 fairly in line with expectations, ScheduALL made a profitIn general, the Q2 report was better than expected on sales (12% vs. ABGSCe) while EBIT of SEK 1.1m was ahead of our estimate of SEK -3.5m. Net Insight received SEK 1.9m in governmental support in Q2, positively affecting EBIT. As expected, the Nimbra business declined y-o-y and was affected by a lower number of live events and postponed orders. We think this market will come back, and Net Insight assesses that the market will gradually improve in Q2 and into Q3. ScheduALL launched its SaaS offering Evolution in the quarter, which expands the product’s features and addresses a wider range of clients. We find it encouraging that ScheduALL turned into positive EBIT in the quarter, mainly supported by opex reduction of ~45% vs. Q4’19. Sales and the gross margin remained relatively unchanged. We look forward to following the development, especially we understand that Net Insight is open to divest ScheduALL. We raise sales by 4% underlying (1% reported due to FX), and 25-75% on EBIT on a low base (SEK +3-11m).
Three orders during Q2 across the globe
Net Insight secured three orders for its Nimbra offering during Q2. We see it as a good sign that the orders were spread around the globe. A non-disclosed major sports league in North America placed an order of USD 2.5m for a 100G IP media network with Nimbra 1060 and a five-year support contract. METCO in the Middle East, meanwhile, ordered a new nationwide media network with UHD/4K for USD >1m including hardware, services and support. Mobilelinks expanded its network capacity in the Nordics from 100 to 200G using the Nimbra 1060.
30% of market cap in net cash, trades at 1.8x ‘21e EV/sales
We await a final decision concerning the excess cash distribution. We estimate an extraordinary dividend of SEK 0.5 (SEK 191m) for ‘20 to be p
...
- Läs mer på Introduce
Läsaren av innehållet kan anta att ABG Sundal Collier har erhållit eller kommer att erhålla betalning för utförandet av finansiella företagstjänster från bolaget. Ersättningen är på förhand avtalad och är inte beroende av innehållet.
info@introduce.se (Introduce.se)
ABG Sundal Collier - Introduce.se