Fortuna Rises to Six-Month High on Dividend Plan: Prague Mover
Fortuna Entertainment Group NV (FORTUNA) rose for a third day, closing at the highest in more than six months, after the Czech bookmaker said it may pay an extra dividend.
Full-year earnings before interest, taxes, depreciation and amortization jumped 11 percent to 22.1 million euros ($28.8 million), Amsterdam-registered Fortuna said today, beating the 21 million-euro median estimate of six analysts surveyed by Bloomberg. The company said it will pay all of 2012 net income - - 12.3 million euros -- to shareholders and will consider an extra dividend from retained profit generated in previous years.
“We consider the results positive on all levels,” Milan Lavicka, an analyst at Prague-based J&T Banka AS, wrote in an e- mailed report to clients.
The stock added as much as 2.3 percent and ended the day up 1.2 percent at 93 koruna, its highest close since Aug. 28 and the best performance today in the country’s PX (PX) index. The number of shares changing hands was about 251 percent of the daily average over the past three months.
Lavicka has a buy recommendation on Fortuna, with a price estimate of 136 koruna.
Net income fell 7.5 percent from a year earlier after the Czech Republic introduced new gambling taxes, Fortuna said today. The total amount staked by clients jumped 14 percent to 468 million euros in 2012, boosting revenue by 7.1 percent to 96.2 million euros.
The proposed 100 percent payout from the 2012 profit would imply a dividend of about 0.237 euros per share, above the 0.22 euros expected by the market, said Josef Nemy, an analyst at Komercni Banka AS (KOMB) in Prague, in e-mailed comments. He also has a buy recommendation for Fortuna, with a 99 koruna price target.
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