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Research: TMT
4iG has announced a joint venture to launch and operate Hungary’s first geostationary satellite for commercial, governmental and scientific research, CarpathiaSat Hungarian Space Telecommunications Corporation (CarpathiaSat). 4iG will own 51% of CarpathiaSat, with Antenna Hungária, the state-owned telecoms and broadcasting company, owning 44% and New Space Industries, an investment vehicle, holding the remaining 5%. CarpathiaSat will have the right to operate geostationary satellites for a period of 20 years from 2024, following expiry of the current 20 year lease. The launch and operation of Hungary’s first satellite for broadcasting, internet and telephone services and data transmission broadens 4iG’s footprint and progresses its strategy to become the leading IT services company in Hungary and CEE.
Written by
4iG |
Launch of CarpathiaSat joint venture |
Satellite JV |
IT services |
18 August 2020 |
Share price performance
Business description 4iG is one of the leading IT services and systems integrators in Hungary, working with public sector clients, large corporates and SMEs. Management is focused on becoming the market leader in Hungary by FY22 as well as targeting expansion in Central and Eastern Europe. Next events
Analysts
4iG is a research client of Edison Investment Research Limited |
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4iG has announced a joint venture to launch and operate Hungary's first geostationary satellite for commercial, governmental and scientific research, CarpathiaSat Hungarian Space Telecommunications Corporation (CarpathiaSat). 4iG will own 51% of CarpathiaSat, with Antenna Hungária, the state-owned telecoms and broadcasting company, owning 44% and New Space Industries, an investment vehicle, holding the remaining 5%. CarpathiaSat will have the right to operate geostationary satellites for a period of 20 years from 2024, following expiry of the current 20 year lease. The launch and operation of Hungary’s first satellite for broadcasting, internet and telephone services and data transmission broadens 4iG’s footprint and progresses its strategy to become the leading IT services company in Hungary and CEE.
Year end |
Revenue |
PBT* |
Adjusted EPS* |
DPS |
P/E |
Yield |
12/18 |
14.0 |
0.2 |
1.1 |
0.0 |
N/M |
N/A |
12/19 |
41.1 |
3.3 |
31.1 |
22.0 |
21.1 |
3.4 |
12/20e |
49.1 |
3.4 |
31.1 |
22.0 |
21.1 |
3.4 |
12/21e |
58.9 |
4.8 |
43.9 |
31.0 |
14.9 |
4.7 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Following expiry of the current contract in 2024, CarpathiaSat has been established to launch and operate Hungary's first geostationary communications satellite as a public/private joint venture. CarpathiaSat has been established with registered capital of HUF5m and capital reserves of HUF365m (c €1.25m), with the three shareholders contributing pro rata to their shareholdings.
Antenna Hungária (Antenna) is a national terrestrial television and radio broadcasting company, with interests in wireless business telecommunications. The group provides satellite data services that optimized for the specific applications and business needs of its partners. Since 2014, Antenna has been providing uplink and content distribution services for satellite programs. Antenna builds, monitors and operates telecommunications networks, employing VSAT (Very Small Aperture Terminal) satellite technology.
New Space Industries Zrt. was established in April 2019 by Dr. István Sárhegyi and Space Oddity Kft. New Space Industries has reportedly been working on preparations for the launch of the satellite for two years.
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Research: Energy & Resources
Hurricane’s technical committee has concluded that there is a reasonable probability that the oil water contact (OWC) in the Lancaster field is shallower than the range of OWCs estimated in the 2017 competent person’s report (CPR) by RPS Energy. As a result, the company believes there is a risk that the estimated reserves for the Lancaster early production system (EPS) and the contingent resources across the West of Shetland portfolio will be materially downgraded. Given the range of outcomes which could emerge from the technical review, and less than a month to the interim results on 11 September 2020, we believe suspending our valuation is a prudent move until there is further clarity on reserves, resources and remedial actions being considered to mitigate potential reserve downgrades.