Telematic Interactive Bulgaria EAD

Telematic Interactive Bulgaria, operator of online casino and betting platform Palms Bet (top 3 in Bulgaria) began trading as of 22nd March opening at BGN 50.20 pps. Please note the company debuted on the Bulgarian Stock Exchange (BSE) via BGN 16m IPO (largest IPO on BSE since 2018) in February issuing 320k new shares at the price of BGN 50 per share.

Preliminary financial data

Meanwhile, Company’s preliminary financial figures for January and February combined (2m’22) beat pre-IPO expectations. Consolidated revenue for the period jumped 36.8% y/y to BGN 15.4m. If this rate sustains throughout the year it will exceed the initial expectations for FY22 growth (28%). 2m’22 net profits surged even higher, up 38.2% y/y (vs pre-forecasted FY22 21%) to BGN 4.43m. As a result net margin for the first two months of 2022 stood at 28.8% which is more than 2 p.p. higher than FY21 end-year results, while the Company initially expected slight deterioration in FY22.

Plans for expansion

With respect to the war in Ukraine, Telematic is freezing its plans for expansion in the country. So far, the Group has registered a local company, but has not made the capital contributions. According to Telematic, the war has had a negative effect on the revenues of the subsidiary City Interactive. However, it assured that the impact on the group as a whole will be minimal, as these revenues form less than 1% of the consolidated top line.

Dividends

At the realized price per share of BGN 50 the company will be trading at P/E of 10. Telematic’s plans also include to distribute at least 40% of the 2021 net profit in the form of a dividend, implying a yield to investors of 4.13% with respect to the IPO price.

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