- We believe Delfi (SGX:P34) may continue to focus on shareholder returns with stable absolute dividends, despite the currently challenging climate, given its balance sheet strength and strong free cash flow generation.
Delfi reported 3Q24 revenue/EBITDA of US$118mil/US$9mil, -6%/-32% y-o-y.
- - Read this at SGinvestors.io -
- Delfi highlighted that the decline has moderated relative to 2Q24, which saw an 11% y-o-y decline excluding the currency effect, which was attributable to higher promotional spending.
Higher promotional spend flowing into margins.
- Accordingly, we saw a steep margin compression, with Delfi's gross margin falling by 200bps y-o-y. We saw it flowing through at the EBITDA level, with the EBITDA margin at 7.5%, with a higher decline of 270bps y-o-y, likely on operational deleveraging.
9M24 revenue forms 76% of previous estimates, in line, while EBITDA forms 63% of previous estimates, below.
- - Read this at SGinvestors.io -
Trim FY24F/25F earnings by 11%/16% on lower margin, given pivot to higher promotional spending.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Zheng Feng CHEE DBS Group Research | Andy SIM CFA DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-11-13
Previous report by DBS:
2024-08-16 Delfi - Identifying The Pricing Sweet Spot.
Price targets by other brokers at Delfi Target Prices.
Listing of research reports at Delfi Analyst Reports.
Relevant links:
Delfi Share Price History,
Delfi Announcements,
Delfi Dividends & Corporate Actions,
Delfi News Articles
