Leading Bulgarian system integrator, Telelink Business Services Group (TBS), reported 22% y/y growth in FY21 revenue to BGN 165.7m, slightly lower than the managerial guidance (BGN 170.9m).
In terms of markets, local sales jumped 20.7% y/y to BGN 98.8m retaining its 60% share of total sales. Meanwhile, the second largest market (24%), Mid-Western Balkans, shrank by 3% y/y to BGN 39.9m due to slow-down in Bosnia & Herzegovina and Serbia, which overshadowed the rising Croatian sales. The strongest growth (c. 46x) came from other Balkan markets with sales of BGN 10.3m, making it the 3rd largest market due to new deliveries to Greek telecom clients and new large public project in Kosovo. South-Western Balkans also registered a substantial spike in sales – up 70% y/y, due to realization of new high-scale projects in North Macedonia as total sales for the region reached BGN 9.1m. Central and Western Europe sales increased by 19% y/y to BGN 6.6m, while the smallest market – Other markets (incl. USA) sales decreased by 21% y/y due to higher base in 2020 as a result of one-offs to clients in Armenia and UAE.
In terms of technological segments, Office Productivity experienced the strongest growth as Modern workplace sales surged 2.5x to BGN 54.7m due to the growing number of large projects in the Bulgarian education sector. Data centers also advanced, with sales up 47% y/y to BGN 43.8m mostly on completion of wide range of mid and large scale hybrid cloud projects across multiple sectors and regions. Meanwhile the largest segment, Data networks (telecoms plus enterprise networking) declined 23% y/y to BGN 60m on lower revenues from telecoms and public sector as the Group continues to refocus to higher margin segments. Information Security registered a decline of 26% y/y to BGN 3.8m due to the shrinking sales from the Bulgarian public sector.
Operating expenses outpaced revenue, jumping 25% y/y at BGN 151.12m on substantial increase in costs of hired services and costs of goods sold. As expected by the management, EBITDA remained relatively flat, up by only 1% y/y at BGN 17.2m with an EBITDA margin erasing 2.15 p.p. y/y at 10.4%. Meanwhile net profits fell by 3% y/y to BGN 12.2m. Profitability was slightly higher than managerial guidance (7.3%) as net margin lost 1.9 p.p. y/y to 7.4%. while EPS stood at BGN 0.98.
Financial overview event
TBS’ regular financial overview 2021 digital event will take place on 17th March in two sessions. The first session will be held in Bulgarian language at 16:00-17:00h (GMT+2), followed by an English language session at 17:15-18:15h (GMT+2). During the event, Telelink’s CEO Ivan Zhitiyanov will present the company’s preliminary consolidated financial results for 2021 and then answer to questions from participants.