Market Overview (10 Feb – 14 Feb) The main Bulgarian index SOFIX increased this week by 0.34% to 897.33 points. The broad index BGBX40 decreased this week […]
WORLD MARKETS SPILLOVER REACHES BULGARIA
| Market Overview (31 Mar – 4 Apr) | |
| The main Bulgarian index SOFIX decreased this week by 3.44% to 879.39 points. The broad index BGBX40 decreased this week by 2.42% to 169.68 points. BGREIT increased by 0.75% this trading week to 215.88 points. | |
| Corporate News | |
| Shelly Group (SLYG) announced that their newest product LOQED Touch Smart Lock is gaining popularity beyond expectations. The first batch of 1,000 locks was sold out immediately and the second batch of 4,000 locks which is to be delivered in Q2, was fully presold. While the numbers might seem small, the locks priced at EUR 300 each, have gained significant interest. The company will produce 2 new models of the smart locks in Q3 and will aim at adjusting production to accommodate the demand. The sales of the product are indicative of the growing interest of smart locks and will be an important part of the portfolio of the company to provide whole smart home solutions. The market for smart locks is expected to grow at 15.4% p.a. till 2029 reaching USD 5.8bn and Shelly is in an excellent position to utilize the increasing demand.
Petrol AD (PET) published 2024 results, where sales dropped 9% to BGN 499mln. Reasons for the drop are the decrease in Retail sales (82.2% of all), which dropped 5.5% to BGN 413mln as the result of the optimization of retail trade locations as well as the lower sales prices in 2024 and wholesale trade decrease (3.4% of all sales), which dropped 56.2% to BGN 17mln. Among the products, the diesel sales marked the greatest decline of 6.6% down to BGN 246mln. Being the most sold type of fuel (59.5% of all sales), it also affected the overall decline the most. Bulgarian Stock Exchange (BSE) published the 2024 results. The increased trade in 2024 resulted in Revenues from clients increasing 11% to BGN 3.8mln, where “Registration and support for financial emissions” had the greatest influence. This helped nearly erase the operational loss from last year from BGN 1mln. However, revenues from dividends resulted in a financial revenue significantly exceeding that from 2023 (BGN 6.9mln in 2024 vs BGN 2.9mln in 2023) and the exchange recorded Net Profit that’s 3.3x that of 2023- BGN 6.7mln in 2024 vs BGN 2mln in 2023. Telematic Interactive (TIB) published their individual 2024 results. The gambling revenues increased 13.5% to BGN 128.2mln. In those, casino games increased 10.5% to BGN 117.6mln and sports betting increased 61.8% to BGN 10.7mln. Expenses’ growth, however, exceeded that of revenues. External services increased 13.5% to BGN 65.5mln (Advertising – up 12% to BGN 24.1mln and Games services – up 9.7% to BGN 24mln contributed the most). Personnel expenses were up 52.6% to BGN 10.6mln and Other expenses (mainly Taxes as per the Gambling tax code) were up 17.6% to BGN 29.2mln. Operational profit dropped 5.3% to BGN 21.8mln, Profit before taxes dropped 4% to BGN 22.6mln and Net Profit decreased 4% to BGN 20.3mln. Earnings per share dropped from BGN 1.63 to BGN 1.57. It is likely that we see higher expenses due to the investments targeting expansion in other markets, rather than a decrease in operational efficiency.
ü No major economic news this week. |
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