MCI Capital - the outlook for another good year MCI can claim the past year as a successful one, and the current year also looks promising in our opinion. The company has increased the value of its assets, made two acquisitions and continues to hold more than PLN 400 million in fresh cash for new investments. The earnings prospects for major portfolio investments such as Netrisk, eSky and IAI in the coming quarters also appear to be very strong. In addition, the company has strengthened its management board with Paweł Borys. As a result of updating our forecasts, we are slightly adjusting our valuation of MCI Capital shares from PLN 40.3 to PLN 40.7 over a 9-month horizon
Results for 2023 - good year, most contributed by Netrisk For the full year 2023, investment earnings amounted to PLN 209 million, EBIT to PLN 195 million and net income to PLN 165 million, with 4Q23 slightly worsening the result after three quarters of 2023. The largest contributor to the 2023 result was the revaluation of the investment in Netrisk (+PLN 106 million), which improved its market position and valuation after the transformational merger with Bauer Media Group assets. Book value per share at the end of 2023 was PLN 39.7 (+8.6% y/y).
Outlook for 2024 - solid foundation for further growth We view the company's outlook for 2024 very favorably. We expect further positive contribution to performance from the investment in Netrisk, which benefits from the recent merger, improved performance in eSky supported by the expected settlement of the terms of cooperation with Ryanair, and improved performance in recently acquired companies. MCI Group's liquidity is around PLN 447 million, so it still has funds for further investments, despite recent acquisitions. Management's rhetoric during the recent conference call also suggests, in our view, that major exits are possible in the next two years, with investments in Netrisk or IAI, which could also further increase available liquidity.
