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segments. Namely, fixed broadband revenue was up 1.5% y/y, while pay-TV revenue was up 5.0% y/y on the back of increased ARPUs. Notably, Silknet lagged behind Magticom in new customer acquisitions in the fixed broadband and pay TV segments, explained by Magticom’s aggressive strategy to penetrate rural areas.
Despite a strong performance in terms of revenue, the company’s profitability margins slightly deteriorated in H1, with an adjusted EBITDA margin at 53.9% in H1 2021 vs 55.2% in H1 2020. This decline stemmed from increased electricity tariffs, FX-related increases in operating expenses and higher salaries. On a positive note, Silknet’s leverage declined from 2.98x as of Dec-2020 to 2.83x by end June 2021, supported by the GEL’s appreciation against the USD. Notably, from July 1, retail price regulation has been abolished, giving flexibility to existing mobile operators to adjust tariffs when needed.
Silknet’s $200mn eurobond, which is callable from 2 April 2022 (at 105.5%), was trading at 109.06% of par for an YTM of 7.0% as of Sep-21. At this pricing level, it is highly likely that Silknet will recall its eurobonds in Q2 2022.
9.2.4 Healthcare corporate news
EBRD extends €25mn loan to private operator Georgian Healthcare Group amid pandemic
Georgian Capital to buy remaining 33% minority stake in Gefa pharma network by 2027
The European Bank for Reconstruction and Development (EBRD) has agreed to provide a $25mn loan to LSE-listed Georgian Healthcare Group (GHG), Georgia's largest, integrated healthcare services, pharmacy and medical insurance provider.
The financing was approved as part of the development bank's response to the coronavirus (COVID-19) pandemic, the EBRD said.
The loan is to finance GHG's short-term working capital and spending deemed critical amid the COVID-19 pandemic.
According to an official statement from the EBRD, GHG has an important state-aligned role in the fight against the health emergency. The company has adapted six large hospitals to meet needs of virus-infected patients in line with World Health Organization (WHO) guidelines.
The financing will support the implementation of COVID-19 testing at the country’s most advanced medical laboratory, at Megalab. It is also funded by the EBRD.
Georgian investment holding Georgian Capital announced that it will become the owner of a 100% stake in the pharmaceutical network Gefa (including GPC and Pharmadepo) by 2027.
According to the information published on the London Stock Exchange, the redemption of shares from businessmen will be carried out in six steps and it will be completed in 2027.
Following the initial pharmacy businesses purchases in 2016 and 2017, Georgian Healthcare Group (GHG), which is part of Georgian Capital, has held a 67% equity stake in the combined retail (pharmacy) business. It has a call option on the minority stake during the 12 months starting from January 2023. The remaining 33% minority stakeholders, Enrico Beridze and Mikheil Abramidze, who are also the managing partners of the retail business, have a put option for the minority stake also during the 12 months starting from January 2023.
Gefa is the leading pharma chain in Georgia and it operates about 300 pharmacies throughout the country. The company generated revenue of GEL679.5mn ($225mn) in 2020, which was 10.5% more than the previous year. In 2020, the company had a net profit of GEL32.5mn.
65 GEORGIA Country Report June 2022 www.intellinews.com