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Third party research

Investors House: Strong Q2 on associated companies valuation gains, operationally slightly soft - Nordea

Investors House

This is a third party research report and does not necessarily reflect our views or values

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Investors House reported Q2 revenues of EUR 1.7m, -12% versus our estimate. Net operating income was EUR 0.6m. The Services segment posted somewhat weaker results than we had anticipated with sales down 16% and EBIT down 63% y/y. The net result was EUR 3.1m compared to EUR 0.4m a year ago as the successful Kukkula-transaction was completed and booked in associated companies in the P&L in Q2. EBIT excluding associated companies’ fair value change was EUR 0.6m versus our EUR 0.8m estimate. The 2023 guidance was reiterated: earnings will be at the same level or slightly better from 2022.

We have expected a slight increase in earnings in 2023. EPRA NRV was EUR 5.83 per share which translates to a 10% EPRA NRV discount. The Services business accounted for 52% of sales and Real Estate for 48% in Q2. The equity ratio improved clearly q/q to 62% from 58% in Q1 and cash position was EUR 5.1m. We expect a neutral share price reaction on the results and reiterated guidance for 2023.
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