Pegas posted 3Q13 results - slightly negative

Conference Call: Thursday 21st November at 5pm (CET)
* no cons.

The decline in EBITDA was primarilly affected by increased staff costs resulting from the revaluation of the share option plan to fair value and the higher number employees for the new production plant in Egypt.

What is the most important message – Pegas said 3Q13 did not meet its expectations and the company is to forced to also lower our full-year EBITDA outlook to 37-39 mln. EUR down from 40-44 mln. EUR.

With respect to a share price increase during recent months – we expect a NEGATIVE immediate market reaction. Nevertheless, as we believe that lower than expected results have been to a large extent affected by an array of one-off effects, in the long-term we stay positive on Pegas shares and a potential short-term correction may be a good point to accumulate some shares for longer-term investors in our view.