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GEORGIA: RAILWAAY FINANCIALS.

Summary: GR released poor FY17 audited results. On the back of the continued decline in freight traffic volumes, the top line decreased 6.8% y/y to US$ 173.2mn, from an already low base.

GR released poor FY17 audited results. On the back of the continued decline in freight traffic volumes, the top line decreased 6.8% y/y to US$ 173.2mn, from an already low base. On the positive note, logistic service and freight car rental revenue, together accounting for 20.8% of total, were up 32.4% y/y to US$ 29.4mn and 13.5% y/y to US$ 6.7mn, respectively. Following the addition of four new passenger trains, passenger traffic revenue boosted, up 19.7% y/y to US$ 9.1mn. Ambiguity on Tbilisi Bypass Project translated into a US$ 152.2 impairment loss in 2017. As a result, FY17 net income was negative at US$ 141.2mn. Significant drop in EBITDA caused the net debt-to-EBITDA ratio to reach 4.9x, exceeding the Eurobond covenant of 3.5x. The outlook for GREe's performance slightly improved in 2018, with 1H18 revenues increasing 3.9% y/y to US$ 80.4mn.
FY17 revenue was down 6.8% y/y to US$ 173.2mn, from the low base of US$ 185.9mn in 2016. Decrease in freight transportation revenue, down 15.3% y/y, was the main reason behind the decline. Freight handling and other revenue categories declined 10.6% y/y to US$ 20.0mn and 21.3% y/y to US$ 3.3mn, respectively. On the positive note, logistic service and freight car rental revenue, which account for 20.8% of total, were up 32.4% y/y to US$ 29.4mn and 13.5% y/y to US$ 6.7mn, respectively. Passenger traffic category increased for the second consecutive year with FY17 revenue up 19.7% y/y to US$ 9.1mn. In 1H18, the downward trend reversed with revenues increasing 3.9% y/y to US$ 80.4mn helped by the increased freight car rental and logistic service revenue categories.



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Publication:EMBIN (Emerging Markets Business Information News)
Date:Nov 29, 2018
Words:366
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