BAKU, Azerbaijan, Dec.20
By Tamilla Mammadova – Trend:
Georgian incumbent telecom operator Silknet maintains strong profitability on operational level, Trend reports via Georgian Galt&Taggart analytics company.
Silknet generated 156.9 million lari ($47.9 million) in EBITDA in 9M2020, which was 1.9 percent lower compared to the same period last year. While EBITDA, that excludes IFRS 16 was down 2.6 percent year-on-year to 146.7 million lari ($44.8 million) in 9M2020.
Notably, with slight weaknesses in revenue generation, the company’s profitability came under pressure during 2Q2020 and 3Q2020. Silknet’s EBITDA was down 7.8 percent year-on-year in 3Q2020 after declining by 4.8 percent year-on-year in 2Q2020. Despite slight deterioration, Silknet maintains strong, above 50 percent EBITDA margin.
With improved investor sentiments, boosted by COVID-19 vaccine news, the interest towards Emerging Markets, including regional fixed income universe has increased in the second half of the year.
For the past couple of months, yields on Georgian Eurobonds have been on the downward trajectory, dropping to pre-pandemic levels.
In November Silknet launched Georgian Depositary Notes, which are linked to $200 million Eurobonds. The issuance of the notes, with $1,000 denomination, is aimed to increase local demand on Eurobonds, by removing the barriers (minimum investment $200,000), which make purchase of Eurobonds unaffordable for many Georgians. Notably, this is the debut issuance of depositary instruments in Georgia.
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