Investors House: Somewhat weak Q1 but guidance is for result to improve in 2021 - Nordea

Investors House reported Q4 revenues of EUR 1.9m, 39% ahead of our EUR 1.4m estimate. Net operating income was EUR 0.4m, 45% below our EUR 0.7m estimate. The Q1 operative result was EUR 0.1m, up 3% y/y and was burdened by investments into new businesses (recruitments) and by the fact that property tax is fully accounted for in Q1. The reported Q1 net result of EUR -0.5m included EUR -0.6m of negative fair value changes. EPRA NRV was EUR 7.90 per share, up from EUR 7.60 at the end of Q4 2020. The Services business accounted for 39% of sales and Real Estate for 61%. After Q4, Investors House announced the acquisition of Juhola Asset Management, which will increase the share of sales and NRV contribution from Service. The acquisition impacted Q1 for only three weeks. Solidity remained strong at 52%. On Friday 7 May, Investors House reintroduced its guidance. For 2021, Investors House now guides for the operative res ult to improve from 2020, which is in line with our expectations. Investors House trades at a 25% discount to EPRA NRV. We expect a slightly negative share price reaction on the back of the somewhat weak Q1.