TBS Group reported H1 net profit soaring 129%
ICT-focused Telelink Business Services Group (TBS BU) (TBS Group) reported 39% jump of consolidated revenues in H1’20, while the net profit soared 129% to BGN 6.4m. Profit margins improved by 4 percentage points due to acceleration of sales growth as compared to costs, including optimization of administrative costs.
Revenues in Bulgaria continue to grow
TBS Group announced 35% growth of local revenues to 52% share of total. Revenues from West Balkan operations increased slower than average but returned to growth after the weak period of the previous year. Sales in Republic of North Macedonia and Albania contributed to 4% of overall revenues. Telelink started operations in those markets in 4Q’19. Revenues from networking and data centers grew 25% and 28%, respectively. The fastest growing segment was office productivity with 219% increase to 21% share of revenues. The balance sheets also expanded, mainly receivables and cash, following the rising revenues. Debt decreased 19% to BGN 5.2m.
Share buyback on 2nd September
TBS Group starts a share buyback of up to 15 000 shares on 2nd September 2020. The brokerage to manage the buyback is ELANA Trading. The pricing of the buyback is set in the range of BGN 7.40 to BGN 11 per share. The bought-back shares will be used for investment activities and/or employee stock ownership plan.
Dividends to be announced
General Meeting of Shareholders will take place on 10 September 2020 to vote distribution of 6-month dividend. It will be based on the dividends the group will receive from its subsidiaries. A total of BGN 6 mln. or BGN 0,48 gross dividend per share will be distributed, according to the decisions to be voted. This dividend complies with the forecast in the beginning of 2020 for distributing at least BGN 4 mln. and dividend yield of minimum BGN 0,32 per share.
Find out full equity research report by ELANA Trading Research team in ELANA Online
TBS Group H1 Financials Overview – webinar with the management on 8th September 2020. Register here