Zegona Communications Share Discussion Threads

[mach100] 09/6/2020 16:42:36

Well Dekle they pass on 100% of the dividend they recieve from Euskatel so they can;t be called greedy. And if they deliver on their promises shareholders won't mind about the pay so much. Furthermore there are large institutional holders who must have some sway on remuneration.
The share price is growing strongly in the last fews days. Is it sending a strong signal to the market?

[dekle] 09/6/2020 16:29:51

I hadn't realised the level of executive pay. Seems excessive to me

[skyship] 02/6/2020 08:10:36

Chart breakout - been quite a common pattern recently.

[hugepants] 01/6/2020 22:20:38

Euskaltel up 10% today for some reason

[cerrito] 14/5/2020 15:00:51

I had a canter through there results.
Good that they will be passing through all the Euskaltel dividends.
I did not get the impression that any other deals are imminent and of course their current financial fire power is limited - which in some ways is as it should be given one would not want them to have a lot of cash hanging around.
I was surprised to see that they had a borrowing facility with Virgin as that seemed rather desperate but relieved to see that it had expired unused.
Incidentally as a Virgin user here in the UK my sense is it is getting expensive and service is detiorating and let's hope people in Spain do not think that.
The key is that we have an Euskaltel investment valued at E341m and the corporate costs were E5.7m in 2019 of which personnel costs were E4.3m. The corporate cost figure was up from E3.9m in 2018 due to bonuses.
Just as well that it trades at a discount to NAV
On May 13 they calculate NAV at £1.14 down from £1.37 at year end- largely due to a fall in the value of the EUS shares from E341m to E272m.
At current time and prices see no reason to buy or sell.

[cerrito] 23/4/2020 09:19:58

Eus share p[rice up 1.5% to E6.59 post results.
May buy more ZEG shares..would help if there was more liquidity.

[cerrito] 22/4/2020 19:11:16

dividend.
hxxps://www.euskaltel.com/webektest/GaleriaCorporativo/Documentos/hechos_relevantes/2020/resultados-1t2019-en.pdf
Q1 results presentation released today I think after market close.
They maintain 2020 guidance and 2019 dividend payment.
My quick read is that nothing here to materially move the EUS share price either way.
They have a conference call tomorrow 12 noon London time..not sure if I will make it.

[cerrito] 13/4/2020 22:41:00

In my view good for all concerned that Invesco are exiting as per their RNS of the 8th going down from 7.3% to 3.1%.
On March 30 Euskaltel issued an update and said
quote
To date, the company has not experienced any significant impact on its main financial metrics. The
company continues to monitor financial trends in order to ascertain any business impacts.
unquote
They are publishing their first quarter results next Wednesday with a conference call on Thursday.
Be interesting to see how widespread in Spain the cutting of dividends is. Their net debt;ebitda of 4.3x suggests they may want to count their pennies.Their March 30 trading update indicated as one would expect the home market which is 5x the revenue of b2b going very well and b2b very badly but need to wait till next week how that is all reflected in the bottom line. Their share price remains at E7.
I do not see myself doing anything till we get Q1 figures.

[the ghost who walks] 06/4/2020 21:46:14

Is this on a discount to the investment in eusaketil? 180mln mkt cap. Stake in the Spanish thing is about the same? No other assets?

[cerrito] 29/3/2020 22:01:24

There are several other similar links to a twitter handle but they never seem to have any relevance to the company in question.

[dekle] 29/3/2020 14:15:19

What are they saying? I don’t tweet

[cerrito] 28/3/2020 17:44:14

I had rather a delayed run through here.
I see that the EUS share price has recovered from a low of E6 a couple of weeks back to E7 as of yesterday#s close. This gives EUS a marcap of E1248m and Zeg’s 21% share to be worth E262m or E235m.
If you say that ZEG has £25m of other net assets that gives total assets if ZEG of £260m or £1.18 per share.
EUS had a decent 2019 performance and paid in February the same interim dividend that it had done the year before.
Makes sense to me that ZEG does share buy backs given the discount to NAV but do not see myself as buying more-and no desire to sell.
Feel free to check my maths

[quiggers3112] 14/2/2020 22:40:23

Looks attractive due to the NAVPS but to invest in ZEG means looking in detail at EUS. The B/S looks decidedly uninteresting from a balance sheet valuation. Too risky for my liking without a detailed analysis. Is EUR 8.37 fair value? I have no idea!

[cerrito] 14/2/2020 22:05:19

The E303.5m would be the then market value of the EUS shares that ZEG held at the time.
Given that Zeg was announcing purchases as recently as the day before yesterday and has plenty of headroom no idea why the price fell this afternoon.

[quiggers3112] 13/2/2020 22:16:05

ZEG B/S 30/6/19 88% of net assets are EUS investment valued at EUR 303.5m.
EUS B/S q319 shows neg. equity of EUR -337.3m when intangibles are stripped out.

Why would anyone invest in that? I`m clearly missing something...
How has that 303m valuation been calculated? Anyone.
Q

[cerrito] 31/1/2020 11:59:18

Thanks for that Tiltonboy.
Incidentally I thought that the IR pages on the EUS website very good.

[tiltonboy] 30/1/2020 22:50:04

Cerrito,

That looks pretty much spot on.

Artemis are a holder of EUS, and mentioned them on their weekly note, last week.

I was disappointed that neither MVI or ZEG were the buyers of lines of stock that went through yesterday.

[cerrito] 30/1/2020 21:48:18

The prize for the most uncooperative IR department must go to Zegona.
I am looking at getting back into these as I have had a good experience in the past and looking to get Soanish exposure.
Trying to work out the current value of their net assets, I emailed them asking them to send me the total number of shares in Euskaltel they own.
An easy enough question but they pointed me to their December 2 RNS.
I gather from their website that EUS have 178m shares which as a 21.3% holder would give Zeg37.9m shares which at today’s share price of E8.6 gives us E326m. Add to this other net assets of E25m gives us E351m. At today’s exchange rate of 0.84 that gives us £295m.
Also unhelpfully Zeg in their share buy back RNS do not give us the total shares outstanding but I got 220m from the ZEG website.
This give us NAV per share of £1.34.
I had expected it to be lower than the December 2 RNS figure given both the fall in the EUS share price and the strengthening of the £ against the Euro.
First appreciate if people can check my maths.
If my maths are correct, this is still a decent discount. My question to myself if it is big enough for me to get involved in the Spanish telco market-the last time I came across it was 10 years ago or so when I was a shareholder in VOD who were then complaining of very thin profitability in the then Spanish mobile market.
I see that two Basque banks have 20% shareholdings in EUS –no surprise as they were founding shareholders- and there is some speculation in the Spanish press that they want out. I have no idea if that is true and if true what effect it would have on the share price
Also will the discount between ZEG’s share price and the NAV narrow or widen? Not an academic question given the largest shareholder with 19% is MVI and there must be questions on its viability.
Views welcome

[mach100] 17/1/2020 10:19:41

What's weird about that dekle? Has the price changed? They are embarking on a share buyback programme.The amount in each trade may change if there is substantial share price movement but the final total will be £10 million should they see it through.

[dekle] 16/1/2020 08:47:05

Weird, the last 2 releases have reported an identical number of shares purchased. Weird because it is the same odd number. i.e. 207383

[mach100] 07/1/2020 10:07:39

Starting to move up though the share buyback has not yet begun. I expect a further couple of pence on the ask once the buyback starts in earnest.

[elgordo] 04/8/2019 12:48:02

"Virgin signs deal to reign in Spain as Richard Branson strikes pact worth millions of pounds"

[sharesoc] 16/7/2019 11:27:02

The Zegona presentation from our recent London company seminar can be found in our members area here:
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