Speedy books 9m 2018 cons EPS of BGN 1.8, revenue increases 11% YoY (POSITIVE)

Speedy consolidated Q3’18 revenue of BGN 47.5m represented a 23% YoY increase. The growth was driven in near equal parts by foreign and domestic markets, which expanded 26% YoY and 23% YoY, respectively. The foreign market revenue surpassed 40% of the total, while local market fell 0.4p.p. to 55.3%. Overall number of deliveries increased by 23% YoY. The personnel expenses (+23% YoY) and hired services (+24% YoY) costs expanded to BGN 9.5m and BGN 28m respectively, with only other operating expense item decreasing, but from an already low level. EBITDA for Q3 was BGN 7.4m, a 15.5% margin (Q3'17: 15.4%). Earnings for the quarter were BGN 4m, +52% YoY. 9m'2018 cons revenue was BGN 128m (+11% YoY), reflecting a 13% YoY and 8% YoY growth of the local and foreign markets respectively. The two largest expense items - personnel and hired services costs, increased 15% YoY and 6 % YoY respectively, resulting in an EBITDA margin of 16%, compared to 13% a year ago. According to the management, the improved margin is on the back of implementation of a new logistics scheme, and reorganisation of the transportation, which led to a 14% reduction in the subcontractor costs, as well as delivery compensations and cutting of unprofitable activities. 9m’18 net income was BGN 9.8m, representing a NI margin of 7.7% (9m'17: 4.9%). EPS for the 9m'2018 was BGN 1.831.