Telelink Business Services Group Affirms Growth in the First Half of 2020

SOFIA, September 3, 2020 – Telelink Business Services Group AD reported a 39% growth in its consolidated revenues in the first half of 2020 over the same period of last year, according to the company’s consolidated interim financial statements published on August 31. In absolute figures, the consolidated net sales revenue amounted to BGN 65 million as compared to 46.8 million for the first half of 2019.Despite of the negative effect of COVID-19 on the economic environment, the Group continued to account growing sales in all main regions, including 41% in the revenues from local and international markets at Telelink Business Services EAD (Bulgaria), and 25% in the subsidiaries in Serbia, Montenegro, Bosnia and Herzegovina and Slovenia and the activities in Macedonia and Albania launched in second half of 2019. Major growth drivers included Service Provider (Telecom) Specific Solutions, boosted by recovering sales in the Western Balkans, and digitalization-critical products and services of the Modern Workplace business, playing a main part in the sales growth in Bulgaria.

Reflecting the growing sales and improving gross margins, the Group registered accelerated growth on all profitability levels, with earnings before interest, tax, depreciation and amortization (EBITDA) growing by 102% to BGN 8.7 million, and net profit – by 129%, reaching BGN 6.4 million.

Improvements were also registered in various indicators relative to the Group’s financial position. As a result of the accumulated profit, the equity increased by 82% to BGN 14.2 million, while the total financial debt decreased by 19% to BGN 5.2 million. Accounting for the latter and the realized positive net cash flow, as of period end, the Group’s net debt (difference between total financial debt and cash and cash equivalents) decreased to BGN -0.9 million.

The complete financial statements of the Group as of June 30 2020 are available at: http://www.tbs.tech/documents/financial-reports/. On September 8, the results will be presented on a webinar where the management of the Company will also answer questions by present and potential investors. Registrations for participation in the event in English can be made at: https://bit.ly/3gzBUHy.

From September 2, Telelink Business Services Group launched the buyback of own shares on the BSE for the purposes of employee incentive programs. While the announced initial amount is 15,000 shares, the company also expects further tranches by the end of 2020.

As of September 1, the company’s shares closed at BGN 8.80 per share on the BSE, marking a 16% growth over the price of BGN 7.60 at which the Company listed on the BSE during the first tranche of its public offering at the beginning of June.

For additional questions, please contact us at marcomms@tbs.tech

About Telelink Business Services Group AD

Telelink Business Services Group AD was set up in 2019 after the System Integration unit spun off from Telelink Holding. The Company focuses on seven technology streams, providing a holistic approach to IT challenges. The company has over 220 employees, sales offices in seven countries and more than 200 enterprise and SMB customers from different sectors. Telelink Business Services has a broad network of partnerships with global technology leaders like Cisco, Microsoft, IBM, DellEMC, VMware, etc. The company’s mission is to simplify the complex and enable businesses to do great things by utilizing technology.