Money Buzz! Europa

Category: Business

  • 98.9% of enterprises in the EU had fewer than 49 persons employed

    98.9% of enterprises in the EU had fewer than 49 persons employed

    In 2017, an overwhelming majority (98.9%) of enterprises in the European Union’s non-financial business economy were enterprises with fewer than 49 persons employed (small enterprises), followed by medium enterprises (50-249 persons employed) with 0.9% of all enterprises, Eurostat data shows.

    In contrast, just 0.2% of all enterprises had 250 or more persons employed and were therefore classified as large enterprises.

    In 2017, there were 22.2 million SMEs in the EU’s nonfinancial business economy, contributing to over half of total value added (56%, EUR 3.5 billion).

    SMEs employed 83.9 million people in 2017, accounting for 67% of all employed. Over half of them were employed in three economic activities: distributive trades sector (20.7 million people, 27% of small enterprises’ and 19% of medium-sized enterprises’ employment), manufacturing (15.8 million people, 14% and 33%) and construction (10.2 million, 14% and 7%).

    Among EU Member States with available data, the share of people employed by small enterprises was highest in Portugal, where small enterprises employed 61% of all the employed, closely followed by Spain (58%), Latvia and Estonia (both 57%) as well as Slovakia (56%).

    Medium-sized enterprises employed the highest shares of people in Luxembourg (25%), closely followed by Lithuania (23%), Estonia and Latvia (both 22%).

  • Pirelli revenues, decline of 20% compared with March 2019

    Pirelli revenues, decline of 20% compared with March 2019

    Pirelli revenues in Q1 2020, of 1,051.6 million euro, show a decline of 20% compared with 31 March 2019 because of sharp drop in demand.

    Total net profit was 38.5 million euro (101.4 million euro in Q1 2019) and net cash flow: -753.5 million euro, substantially in line with -712.9 million euro in Q1 2019.

    Covid-19 impact on Pirelli factories

    In the first quarter of 2020, the tyre sector was significantly impacted by the Covid-19 emergency at the global level and by the related lockdown measures, with a general deterioration of economic conditions, fall in consumption and production.

    In the first quarter, the demand for car tyres registered a fall of 20% in sales’ volumes, in both Original Equipment (-22.7% in line with car production) and Replacement (-19.3% because of restrictions on mobility).

    The fall in demand struck the Standard segment in particular (-22% for Car tyres ≤17’’) and to a lesser degree New Premium (-11.6% for Car tyres ≥18’’), the more resilient segment.

    During the quarter, production at Pirelli underwent significant discontinuities because of the suspension of activities in countries where this became progressively necessary both to protect workers’ health and because of the marked fall in demand.

    The experience gained in China, where production and commercial activities are returning to normal, enabled Pirelli to respond quickly to the deep changes in the global scenario, defining an action plan and new 2020 targets.

  • Vodafone to pay 9 euro cents dividends per share

    Vodafone to pay 9 euro cents dividends per share

    Vodafone revenue for the fiscal year 2019-2020 grew by 3.0% to €45.0 billion, supported by improving commercial momentum in Europe.

    The group’s revenues increased by 3% to 45 billion and the adjusted EBITDA increased by 2.6% to 14.9 billion.

    Net cash flow was 4.9 billion, thus allowing the company to confirm the dividend per share of 9 eurocents and leading the stock to jump 8% in London. Net losses reduced to 455 million (7.6 billion the previous year).

    During the year, 5G services were launched by Vodafone in 97 cities across eight European countries while four million customers signed up to its unlimited mobile data plans after launching speed-tiered unlimited plans in six of its markets. 

    Vodafone forecasts for the next financial year 2020-2021 an adjusted EBITDA “from flat to slightly decreasing, compared to a revised FY20 reference base of 14.5 billion”.

  • Aegon had a net income of EUR 1,270 million in first quarter

    Aegon had a net income of EUR 1,270 million in first quarter

    Aegon had a net income of EUR 1,270 million and reflects fair value gains of EUR 1,372 million, driven by a reduction in the valuation of the liabilities in the Netherlands, reflecting wider credit spreads.

    Gross deposits were EUR 52 billion; net outflows of EUR 1 billion caused by Variable Annuities and Mutual Funds in the Americas, partly offset by third-party inflows at Asset Management.

    New life sales were EUR 206 million; sales in the US were under competitive pressure and impacted by the phasing out of certain whole life products, while sales in China benefitted from the e-commerce sales model.

    Accident & health insurance new premium production was EUR 76 million and property & casualty new premium production was EUR 36 million.

    Holding excess cash increased to EUR 1.4 billion, driven by a EUR 100 million remittance from the Netherlands and EUR 153 million proceeds from the sale of Aegon’s stake in joint ventures in Japan

  • Fixed cost subsidies will be available this year for Austrian businesses

    Fixed cost subsidies will be available this year for Austrian businesses

    Austrian Finance Minister Gernot Blümel said in a press conference that ”Fixed cost subsidies will be available this year. Applications possible from 20th May”.

    “We have already achieved a great deal with the €38 bn protective package we have extended over the Austrian economy. Much remains to be done, but a total of around €19 bn in funding has been committed so far. There is a €15 bn corona relief fund, which is processed via COFAG and includes two relief mechanisms. On the one hand, there are loans, which are guaranteed by the state and granted through the banks”, said Finance Minister Gernot Blümel.

    COFAG has provided around €1 bn in guarantees by now and Austria is one of only four EU countries to offer 100% guarantees.

    Advance payment of the fixed cost subsidy

    Additionally to the state guarantees, the fund provides a second relief mechanism in the form of grants to particularly hard-hit companies. These grants cover fixed costs and perishable goods.

    The subsidy is staggered and, depending on the extent of the loss, up to 75 % of fixed costs and perishable goods can be reimbursed. It is now also possible to pay this subsidy in advance.

    Applications can be submitted on FinanzOnline from 20th May. The finance office checks plausibility in an automated process before COFAG conducts the final checks and approves the payment. 

  • Restaurants in Austria to reopen on May 15

    Restaurants in Austria to reopen on May 15

    Heute writes that all restaurants in Austria will reopen on May 15, as Sebastian Kurz, Elisabeth Köstinger and Rudolf Anschober informed on Friday.

    Next Friday, Austria’s restaurant and pub owners are allowed to open again. However, certain rules also apply and strict compliance with hygiene regulations. The government exchanged views with 6.000 owners across Austria to develop the concept.

    Taverns, restaurants and cafes may be open between 6 A.M. and 11 P.M. The staff in direct contact with guests must wear a mouth-nose mask. A maximum of four adults are admitted to a table plus their children.

    There must be at least a meter safety distance between people who are not sitting at a table.

    Clients are allowed without prior registration to any restaurant or pub, but are kindly asked to make a reservation in advance to ensure that there are free spaces.

    The new regulations for the reopening of restaurants will be published on the website of the Ministry of Health, but for the time being there should be no penalties for violations.

  • Osram revenue fell by almost 8% to 821 million euros

    Osram revenue fell by almost 8% to 821 million euros

    Although Osram revenue fell by almost 8 percent on a comparable basis to 821 million euros, a positive free cash flow of 64 million euros was achieved particularly through targeted cash management.

    The adjusted EBITDA margin improved by almost four percentage points year-on-year to 11.7 percent. Adjusted EBITDA was about a third higher than in the previous year at 96 million euros.

    Due to restructuring costs of 45 million euros, mainly for charges for the structural and personnel adjustments, the net result was negative at 39.3 million euros.

    “The measures we took very early on to counter the consequences of the COVID-19 crisis are having an effect throughout the company. It has been a challenge to maintain production largely on a regular basis in recent weeks, as our top priority is and remains the health and protection of our employees. Osram is also using the time to be well positioned after the Corona crisis. Our high equity ratio is of great benefit to us,” said Olaf Berlien, CEO of OSRAM Licht AG.

    As part of company-wide crisis management, additional liquidity volume of around 200 million euros was identified until the end of the fiscal year through working time measures, the review of investments and consistent financing management, among other things.

    Osram is sticking to its existing performance programs, which will bring savings of 300 million euros from 2018 until the end of fiscal year 2022.

  • Andersen Global debuts in Ukraine market

    Andersen Global debuts in Ukraine market

    Andersen Global announces its entry into Ukraine via a collaboration agreement with a leading local firm Sayenko Kharenko, further expanding its global platform in Eastern Europe.

    Founded in 2004, Sayenko Kharenko is one of the largest law firms in Ukraine with 17 partners and more than 120 total professionals.

    The firm specializes in complex cross-border and local matters and provides services for a variety of industries including healthcare, pharmaceutical, agriculture, energy, retail and natural resources.

    Andersen Global is an international association of legally separate, independent member firms comprised of tax and legal professionals around the world.

    Established in 2013 by U.S. member firm Andersen Tax LLC, the firm now has more than 5,000 professionals worldwide and a presence in over 168 locations through its member firms and collaborating firms.

  • Legrand organic change in sales of -7.3% in Q1 2020

    Legrand organic change in sales of -7.3% in Q1 2020

    In the first quarter of 2020, marked by a significant decline in business at the end of the period, Legrand reported a -2.2% fall in sales, reflecting an organic decline (-7.3%) and an adjusted operating margin before acquisitions1 of 18.7%, one point lower than in the first quarter of 2019.

    The health crisis has triggered a sharp deterioration in the world economic outlook with a deep recession expected in 2020, leading Legrand to suspend its targets for the year on March 26.

    An organic fall in sales was confirmed in April 2020, which saw a retreat of -41% for the month.

    On this basis, Legrand anticipates a marked decline in sales in the second quarter of 2020. Subject to a favorable trend in the global health situation, the second half of the year should see a sequential improvement.

    Legrand is working actively to ensure continuity of service for customers, whose businesses are critical to keeping the economy functioning. On May 5, 2020, almost all of Legrand’s logistics centers were open and customer care operations (including both sales and service teams) were up and running in most of the geographical areas it serves.

    In addition, Legrand is honoring all of its payment obligations, particularly to suppliers, and is maintaining its proposed dividend for 2019 at €1.34, unchanged from the previous year, compared to the €1.42 initially proposed.

  • Nomad Foods revenue increased 10.5% to €683 million

    Nomad Foods revenue increased 10.5% to €683 million

    Nomad Foods reported financial results for the three month period ended March 31, 2020. As compared to Q1 2019, revenue increased 10.5% to €683 million. 

    Organic revenue growth of 7.7% was comprised of 1.4% growth in price and a 6.3% increase in volume/mix.

    Gross profit increased 4% to €199 million. Gross margin declined 180 basis points to 29.1% as pricing, promotional efficiencies and mix were more than offset by cost of goods inflation.

    Adjusted operating expenses increased 14% to €97 million reflecting double-digit growth in both Advertising & Promotion and Indirect expenses as a result of phasing.

    Adjusted EBITDA decreased 2% to €120 million due to the aforementioned factors. Adjusted Profit after tax decreased 5% to €68 million, reflecting Adjusted EBITDA decline and higher finance costs.

    Nomad Foods is a frozen foods company. The portfolio of iconic brands, which includes Birds Eye, Findus, Iglo, Aunt Bessie’s and Goodfella’s, have been a part of consumers’ meals for generations. Nomad Foods is headquartered in the United Kingdom.

  • Enel income increases 10,5% in the first quarter

    Enel income increases 10,5% in the first quarter

    Enel Group net income was 1,247 million euros (1,256 million euros in the first quarter of 2019, -0.7%). Group net ordinary income was 1,281 million euros (1,159 million euros in the first quarter of 2019, +10.5%) net of extraordinary items in the two periods under review.

    Enel revenues were 19,985 million euros (22,755 million euros in the first quarter of 2019, -12.2%).

    The change is mainly attributable to lower volumes of electricity sales in Italy and Spain as well as gas in Spain, to Thermal Generation and Trading in Italy, reflecting a decline in trading activities and the effects connected with the application of IFRIC interpretations, on top of adverse exchange rate developments, especially in Brazil, Chile and Colombia

    Net financial debt was 47,097 million euros (45,175 million euros at the end of 2019, +4.3%).

    Electricity and gas sales

    Electricity sales in the first quarter of 2020 amounted to 77.7 TWh, a4.6 TWh decrease (-5.6%) on the same period of 2019. This change mainly reflects:

    • a decrease in quantities sold in Latin America (-1.7 TWh), mainly in Chile (-0.9 TWh);
    • a decrease in quantities sold in Italy (-2.7 TWh) and Spain (-0.7 TWh), partly offset by an increase in sales in Romania (+0.5 TWh).

    Natural gas sales amounted to 3.7 billion cubic meters, down 0.3 billion cubic meters on the same period of the previous year.

    The Enel Group workforce at March 31st, 2020 numbered 67,921 (68,253at December 31st, 2019). The change in the first three months of 2020 (-332) reflects the impact of the balance between new hires and terminations (-278), the change in the scope of consolidation (-54), mainly due to the disposal of hydro plants in the United States.

  • Casino and gambling paid ad impressions, 158% growth

    Casino and gambling paid ad impressions, 158% growth

    Data exclusively gathered by GoldenCasinoNews.com shows that global paid ad impressions in the casino and gambling sector have grown by 158.22% on average during the sixteenth and eighteenth week of 2020 compared to a similar period last year.

    The total paid ad impression for the sector highlights how many advertisers were willing to pay for the casino and gambling industry-related ad impressions each week.

    Ad impressions pick up in an effort to grow the online user base

    During the sixteenth week of 2020, the paid ad impressions were 292,849 while in 2019 during a similar period the figure was 110,914, a percentage change of 164.03%. In the seventeenth of 2020, the impressions were 387,673. A year early, the number was 135,849, representing a change of 185.37%. In the eighteenth week of 2020, the paid ad impressions stood at 375,597 while in 2019 it was 166,742 a percentage change of 125.26%

    Cumulatively, 2020’s paid ad impressions up to the eighteenth week stood at 6,409,590 while during a similar period last year, the figure was 7,012,424, a percentage difference of 8.6%. However, the impressions for 2020 are picking up after slumping due to the Coronavirus pandemic.

    According to the report: “The increasing number of paid ad impressions in the recent weeks might be the last move by advertisers’ effort to grow their online user base before land-based gambling entities reopen in May.”

    The data also highlights countries where the highest-paid ad impressions in the casino and gambling sector originated from between April 5 to May 4, 2020. Germany had the highest number at 197,165 followed by Poland with 161,676. Peru occupies the third spot with 150,863 paid ad impressions. Other notable impressions originated from UK (112,818), India (105,335),

    Portugal (97,041), Brazil (88,578), Sweden (59,898), Colombia (56,668), and Mexico (43,604).

    The data on paid ad impressions per industry was exclusively acquired from the adtech company Setupad, which develops and operates header-bidding technology.