Speedy Q1 2017 uncons net profit down 38.4% YoY as subcontractor costs and personnel expenses rise (NEGATIVE)

Speedy Q1 2017 unconsolidated sales jumped 11.2% on the year to BGN 24.8m, but the increase in expenses eroded the bottom line. OPEX jumped by a significant 20.5% YoY driven by 1) higher subcontractor costs, up 19.4% YoY - their remunerations were increased in the end of 2016, and 2) higher compensation costs – up 23.8% YoY as a result of increasing the number of employees and raising salaries. Hence, the EBITDA margin went down to 13.1% from 19.9% a year ago. Net profit sank 38.4% YoY to BGN 1.1m and net margin of 4.6% vs. 8.3% in Q1 2016.