Money Buzz! Europa

Category: Business

  • Services turnover index decreased by 6.2% in Italy

    Services turnover index decreased by 6.2% in Italy

    In the first quarter of 2020 the services turnover index decreased by 6.2% compared to the previous quarter, latest Istat data shows.

    In particular the index decreased in accommodation and food service activities (-24.8%), transportation and storage (-6,4%), Wholesale trade, trade and repair of motor vehicles and motorcycles (-6.0%), administrative and support service activities (-2.0%), information and communication (-0.9%) and professional, scientific and technical activities (-0.4%).

    In the first quarter of 2020 the services turnover index decreased by 7.2% compared to the fourth quarter of 2019.

    In particular, the index decreased by 24.1% for accommodation and food service activities, by 7.8% for wholesale trade, trade and repair of motor vehicles and motorcycles, by 5.3% for transportation and storage, by 2.8 for administrative and support service activities, by 2.6% for professional, scientific and technical activities and by 2.4% for information and communication activities.

  • 62.9% of travel managers intend to reduce the price of package services

    62.9% of travel managers intend to reduce the price of package services

    In May 2020, the National Statistical Institute of Bulgaria has continued the monthly inquiry survey of the managers of accommodation establishments to gather accurate and timely information on the state and development of their businesses during the state of emergency and the ensuing epidemiological situation in the country.

    In the current situation in April, 49.1% of the respondents consider offering their clients an alternative period to use the reservations. At the same time, 62.9% of them intend to reduce the price of package services and 46.7% – the price of night spent.

    As regards to the employees, 37.2% of managers have taken ‘unpaid leave’ as a measure, followed by ‘release/ reduction’- 36.8%, and ‘paid leave’ – 31.7%. 19.8% of the managers have benefited from the ‘60/40’ measure as 10.8% of them have applied ‘remote form of work’ or ‘reduction the salaries of staff’.

    In April, most of the managers (82.3%) report a decrease of revenues from the activity compared to the previous month, and 16.5% of them indicate that there is no change.

    In short term (in the next one month), 40.8% of the managers predict that they will be able to serve ‘up to 50%’ of the expenditures of own account activity, 16.0% of them – ‘up to 100%’, and 42.0% of the respondents indicate that they will not be able to handle by themselves.

  • Stabilization measures and loans of EUR 9 billion for Lufthansa

    Stabilization measures and loans of EUR 9 billion for Lufthansa

    The German government approved the stabilization package for Lufthansa. The package provides for stabilization measures and loans of up to EUR 9 billion.

    The government will make silent participations of up to 5.7 billion euros in total in the assets of Deutsche Lufthansa AG.

    Of this amount, approximately EUR 4.7 billion is classified as equity. In this amount, the silent participation is unlimited in time and can be terminated by the company on a quarterly basis in whole or in part.

    In accordance with the agreed concept, the remuneration on the silent participations is 4% for the years 2020 and 2021, and rises in the following years to 9.5% in 2027.

    Furthermore, the government will subscribe to shares by way of a capital increase in order to build up a 20% stake in the share capital of Deutsche Lufthansa AG. The subscription price will be 2.56 Euro per share, so that the cash contribution will amount to about 300 million Euro. The government may also increase its stake to 25% plus one share in the event of a takeover of the company.

    In addition, in the event of non-payment of remuneration by Lufthansa, a further portion of the silent participation is to be convertible into a further shareholding of 5% of the share capital at the earliest from 2024 and 2026 respectively.

    The second conversion option, however, only applies to the extent that the government has not previously increased its shareholding in connection with the above-mentioned takeover case. Conversion should also be possible for dilution protection.

    Subject to the full repayment of the silent participations by the company and a minimum sale price of EUR 2.56 per share plus an annual interest of 12%, the government undertakes, however, to sell its shareholding in full at the market price by 31 December 2023.

    The stabilization measures are supplemented by a syndicated credit facility of up to EUR 3 billion with the participation of KfW and private banks with a term of three years. This facility is still subject to the approval of relevant bodies.

  • 80% of Czech start-ups plan to expand abroad

    80% of Czech start-ups plan to expand abroad

    Nearly 80% of Czech start-ups plan to expand abroad, the most recent Startup Report from the Keiretsu Forum and CzechInvest’s experience show.

    Only 22% of Czech start-ups are not (yet) considering such an expansion.

    This is apparent from the responses of 150 start-up entrepreneurs who contributed to the formulation of the comprehensive Startup Report 2019/2020.

    A similar trend is indicated by statistics from CzechInvest, which has been focusing on support for start-ups since 2011. “More than 70% of the start-ups we have supported within our programmes have also travelled abroad with us,” says Markéta Přenosilová, head of CzechInvest’s Start-up and Innovative SME Division.

    For the absolute majority of Czech start-ups, the Czech Republic is the primary place of business. At the same time, however, there is a growing number of expanding start-ups – 30% of them are doing business outside of the Czech Republic. In the past, the percentage of start-ups operating beyond the CEE region was in single digits.

    According to the Startup Report, the largest number of start-ups head to Europe, then to North America or Asia.

    CzechInvest sent the most young innovative companies to Silicon Valley, New York, London and Lisbon.

  • Alibaba recorded a drop in net profit by 88%, but turnover grew by 22%

    Alibaba recorded a drop in net profit by 88%, but turnover grew by 22%

    Alibaba recorded a drop in net profit by 88% in the fourth quarter of the financial year 2020, due to the impact of the coronavirus pandemic which has caused the interruption of its supply chains, by therefore limiting its delivery capacity.

    Turnover grew by 22% to 114.31 billion yuan, about 16 billion dollars. The company is expecting to record a turnover higher than 650 billion yuan, 91.5 billion dollars, during the current financial year.

    Net profit amounted at 3.16 billion yuan (447 million dollars) in the quarter closed in March. The company has attributed its negative performance mainly to a loss related to net investments.

    The net profit for American Depositary Share was about 1.16 yuan, by highlighting a strong decrease compared to 9.84 yuan earned last year. The adjusted EPS amounted at 9.2 yuan instead, higher than the analysts’ expectations of 6.05 yuan.

  • Czech Post is returning to normal operations from May 25

    Czech Post is returning to normal operations from May 25

    From Monday, May 25, 2020, all branches of Česká Pošta will return to normal operating hours that applied before measures against the spread of coronavirus. 

    Most post offices have been operating normal since May 4, excepting post offices forming the so-called critical infrastructure of the state, which had limited operating hours until 4 PM from Monday to Friday and on Saturday until 12:00 or 1 PM. 

    Another exception were Prague 1 and Brno 2 post offices, which were open to the public from Monday to Friday until 6 PM and on Saturdays until 12:00 or 1 PM. So far, all post offices have been closed on Sundays.

    With effect from 25 May 2020, all Czech Post offices are returning to their standard hours for public, including Sunday operations. Also, the time period for serving clients over the age of 65 (or holders of a ZTP – P card over the age of 50 or workers in care services) is also abolished.

  • Bonami: Sales of 6 million euros and optimistic forecasts for summer

    Bonami: Sales of 6 million euros and optimistic forecasts for summer

    In April, Bonami exceeded the initial forecast, achieving sales of 6 million euros in all markets where the company is present, of which 1 million euros on the Romanian market.

    “Even though the growth was initially slower, since mid April sales have followed a steady upward trend. In percentage, Bonami achieved sales 30% higher last month than in March, when the pandemic crisis broke out. We are also pleased with the results obtained in May, we expect an increase of 80% compared to the same period last year for the entire company and 120% for Romania “, Pavel Voparil, the company’s CEO, mentioned.

    Bonami has been thoroughly preparing for the summer 2020 season since the beginning of the year, with new spaces dedicated to storing stock products, so that they can be delivered to customers in the shortest time.

    In the coming months, Bonami is counting with a higher than originally expected growth, wanting to sell out the entire stock of products available, with the exception of large pieces of furniture.

    The company takes into account the current context, in which customers will travel less and will spend more time in their own home and garden, being willing to make significant investments to create a pleasant space.

    Bonami thus offers them the opportunity to buy everything they need for the house online, without having to go to physical stores.

    In order to improve the shopping experience, the company launched its own delivery services, but also express delivery of orders to its customers, in collaboration with Liftago.

    Thus, customers can opt for fast delivery, within 3-4 hours, of small products.

  • Zeiss half-year revenue reaches 3.2 billion euros

    Zeiss half-year revenue reaches 3.2 billion euros

    Zeiss half-year revenue reaches 3.2 billion euros (+6% compared to prior year) – EBIT at 455 million euros (+12 million euros compared to prior year).

    Overall, the first six months of fiscal year 2019/20 (ended 31 March 2020) went well for the Zeiss Group. It saw its revenue rise by 6 percent (compared to 3 percent) to EUR 3.213 billion (first six months of 2018/19: EUR 3.019 billion). 90 percent of this sum was generated by markets outside Germany.

    At EUR 455 million, earnings before interest and tax (EBIT) were slightly higher than the previous year (EUR 443 million). The EBIT margin was at 14.2%. Incoming orders hit EUR 3.601 billion (1st six months of 2018/19: EUR 3.161 billion).

    “Overall, we were successful during the first half of the fiscal year. However, the COVID-19 pandemic has had a major impact on the global economy – including on ZEISS’ lines of business,” said Dr. Karl Lamprecht, Zeiss President and CEO.

    At this time it is not possible to make a reliable prediction for the 2019/20 fiscal year due to the global uncertainty surrounding the COVID-19 pandemic.

  • Wien Holding in 2019, the best balance sheet in its history

    Wien Holding in 2019, the best balance sheet in its history

    For 2019, Wien Holding has the best results since its founding in 1974: more sales, higher investments, more profit and sharply increased equity. 

    ”Around 616 million euros in sales in the entire group – thereof around 228.5 million euros in the consolidated companies, total assets of around 1.11 billion euros and a total consolidated annual profit of 76.5 million euros, these are the key figures for 2019,” says Wien Holding Managing Director Kurt Gollowitzer. 

    In addition, the equity ratio climbed to 58.79 percent, as equity increased by EUR 81.1 million compared to the previous year. In 2019, the record amount of EUR 200 million was invested (2018: EUR 144 million).

    The entire Vienna Holding group is made up of around 75 group companies with their respective shares. Of the approximately 75 companies in the Wien Holding Group, 42 are fully consolidated and 11 other companies are consolidated using the equity method.

    The 42 fully consolidated companies alone generated sales of EUR 228.5 million in the 2019 financial year. In 2019, 2.939 people were employed in all companies.

    The Austria-wide gross value added, which the group provides for Vienna and far beyond, is enormous at around 1.6 billion euros. Around 809 million euros of this will remain in Vienna. Wien Holding directly, indirectly and induces around 23.000 jobs across Austria, around half of them in Vienna.

  • Ryanair reported a full year profit of €1bn

    Ryanair reported a full year profit of €1bn

    Ryanair Holdings reported a full year profit of €1,002m (excl. hedge ineffectiveness), compared to €885m last year.

    Highlights include:

    • Traffic grew 4% to 149m guests.
    • Revenue per guest rose 6% to €57 (2% higher fares & ancillary rev. up 16%).
    • Over 90% of flights arrived on-time (excl. ATC delays).
    • EU’s greenest, cleanest airline (66g CO₂ pax/km).
    • 5 new bases & 390 new routes.
    • Malta Air became 4th Group airline.
    • New digital platform launched with improved, personalised, guest offers.
    • Strong balance sheet & liquidity.

    Sales grew 10% to €8.5bn. Scheduled Revenue, driven by 4% traffic growth to 149m and 2% higher fares, increased by 6% to €5.6bn.

    Covid-19 flight restrictions and aircraft groundings in the 2nd half of March reduced traffic by over 5m in Q4.

    The fuel bill rose 14% (+€335m) to €2.8bn due to higher prices and 4% traffic growth. Ex-fuel unit costs were adversely impacted by a 48% drop in March traffic (-5.2m guests) due to Covid-19 groundings and, as a result, rose by 4% (ahead of the +2% guided). 

    How the group airlines performed

    Buzz increased its fleet to 45 B737s and expanded outside Poland with new bases in Prague and Budapest.

    Lauda underperformed in FY20 with fares lower than expected, due to intense price competition from Lufthansa subsidiaries in its core Austrian and German markets. FY20 traffic, however, grew to 6.4m at high load factors. 

    Due to Covid-19 restrictions, the Lauda fleet has been grounded since 17 March.  With costs running ahead of other Group airlines and Lauda’s main competitor, Austrian Airlines, expected to receive an €800m State Aid bailout, Lauda has had to completely rethink its strategy and significantly lower its growth plans. 

    Failure to agree meaningful cost reductions on 20 May will result in the Vienna A320 base being closed on 30 May with over 300 job losses. Lauda has already abandoned plans to operate a base in Zadar for the Ryanair Group.

    Malta Air, which became the 4th Group airline last summer, grew strongly in FY20.  With a fleet of almost 120 aircraft, it has taken over the Group’s French, German, Italian and Maltese bases.

    Ryanair DAC performed well in FY20 and opened new markets in Armenia, Georgia and Lebanon.

    Its fleet, however, has dropped to 275 B737s as both Buzz and Malta Air took over flight operations for the Group. 

  • Farfetch first quarter revenue increased by 90%, to $331 million

    Farfetch first quarter revenue increased by 90%, to $331 million

    Farfetch, a leading global platform for the luxury fashion industry, reported its financial results for the first quarter ended March 31, 2020.

    This are the main highlights:

    Q1 2020 Gross Merchandise Value up 46% year-over-year; Digital Platform GMV up 19% year-over-year (20% on constant currency basis).

    $107 million Brand Platform GMV in Q1 2020 on continued strength of New Guards brand portfolio;

    Q1 2020 Revenue increased 90% year-over-year to $331 million;

    Q1 2020 Loss After Tax remained relatively unchanged and Adjusted EBITDA improved, year-over-year; Adjusted EBITDA Margin improved to (7)%;

    Cash and cash equivalents of $422 million at quarter-end; $400 million Convertible Senior Notes issuance in April 2020 further strengthens liquidity position.

    How the digital platform performed

    The digital platform continued to offer consumers a selection of luxury fashion through partnerships with more than 1,200 sellers, including over 500 direct brand e-concessions.

    • Q1 in-season stock exceeded 300,000 SKUs from more than 3,400 brands;
    • Signed new e-concession with Balmain, among other luxury brands;
    • Maintained 100% three-year retention of top 100 direct brand and top 100 boutique partners.

  • Wienerberger revenues up by 2% to € 793 million in Q1 2020

    Wienerberger revenues up by 2% to € 793 million in Q1 2020

    Wienerberger Group closed the first quarter of 2020 with revenues up by 2% to € 793 million in the first quarter.

    The strong performance contrasted with the initial negative effects of the Covid-19 crisis.

    Owing to the Covid-19 pandemic, the targets for individual markets had to be adjusted accordingly, which resulted in impairment charges of roughly € 116 million in the first quarter of 2020.

    The majority of this impairment (€ 94 million) is attributable to the full write-off of goodwill in North America.

    In addition, impairment losses were recognized for the same reason on various tangible assets across selected European markets (€ 22 million).

    EBITDA LFL came to € 105 million and almost matched the previous year’s record level (€ 109 million).

    Revenues for Wienerberger Building Solutions increased by 5% to € 500 million (2019: € 477 million). EBITDA LFL came to € 81 million, slightly below the previous year’s level of € 86 million.

    Wienerberger Piping Solutions delivered broadly stable revenues of € 221 million (2019: € 224 million).