Sumy Frunze cuts EBITDA by 4.6x yoy in 1H10

Sumy Frunze (UX: SMASH UK) released 1H10 financials on Friday: revenue fell by 28% yoy to UAH 1,142 mln, EBITDA squeezed by 4.6x yoy to UAH 106 mln (margin fell by 21 pp y-o-y to 9%). Net losses amounted to UAH 12 mln in 1H10 (margin of -1%, down by 21 pp y-o-y). Yegor Samusenko: Sumy Frunze’s reported top line of UAH 1.1 bln is even less than the UAH 1.3 bln in the management’s preliminary financials released in July. The decline was primarily explained by the loss of a UAH 800 mln order from an undisclosed Central Asian customer. We see the news as negative for the stock.