Baltic Market: EfTEN and Telia Results
European markets moved moderately higher this week (+0.24%), and two key players on the Baltic stock exchange released their figures. The results present a mixed picture: while the telecom sector is showing strong growth, the real estate sector is dealing with asset revaluations. RYTM's automated analysis helps investors see behind these numbers.
Results: EfTEN's fourth-quarter net profit fell sharply (-135%), turning into a €1.2 million loss. Sales revenue, however, grew by 4.1%.
Reasons: The loss was driven by an accounting write-down of real estate (€4 million), not operational weakness. The fund's free cash flow actually increased by 18%, allowing for a dividend increase to €1.11 per share despite the accounting loss.
Reaction: Investors reacted calmly to the news (+0.3%), appreciating the stable cash flow.
Results: Telia Lietuva reported a very strong quarter, with operating profit growing by 29.2% and net profit by 28.2% year-over-year. Sales revenue increased by 7.1%.
Reasons: Growth was driven by mobile service revenue (+€3.8 million) and equipment sales, supported by the addition of 74,000 new contract customers. The company's efficiency improved significantly as revenues grew faster than costs.
Reaction: The share price remained stable following the results (+0.0%), trading near its 52-week high.
Conclusion
This week's results highlight a key difference between accounting profit and cash profit. While write-downs overshadowed EfTEN's strong cash flow, Telia demonstrated classic growth through efficiency and an expanding customer base. Both companies offer a strong dividend yield. Follow the RYTM platform to stay updated on the next earnings releases.
RYTM content is for informational purposes only, not financial advice or recommendations. You are solely responsible for your investment decisions. Always consult a professional.