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Selskabsmeddelelse

TalkPool AG: Guidance from Talkpool's board

TalkPool
Læs udgivelse

After years of Corona distancing, the board of directors had the pleasure of meeting personally for the first time since 2019.

It has been decided to shift the previous focus on strong revenue growth towards maximising cashflow and net profits. Talkpool expects to report all-time-high revenues in 2022 despite curbing growth in the USA, exiting Africa in June, selling its Dutch subsidiary in October and ramping down in Saudi Arabia.

Annual costs were in 2022 reduced by approximately 1.0 million Euros while loans amounting to approximately 3.0 million were repaid to the lenders and assets amounting to 3.8 million Euros were sold at a 2.1 million Euro profit. These extraordinary events contribute to strengthening the year-end balance sheet and profit/loss account.

Based on preliminary 2022 estimates, Talkpool expects to report its first full-year consolidated net profit after tax since its IPO. Operational profit margins are expected to increase during 2023 and 2024. While the business probably has clocked up record revenues and earnings in 2022, the share price has continued decreasing to an all-time-low valuation of 0.4 Euro per share in early 2023.

Talkpool intends to maximise cashflow through further cost-cuts, continuing amortizing loans and rejecting cashflow-negative projects. The Chairman Magnus Sparrholm and CEO Erik Strömstedt commit to participating in a convertible loan at 8% interest and a strike price of SEK 6 per share that the board has decided to issue in January 2023.

The mentioned asset sales combined with the focus on cash and profit margins lead to lower growth going forward. Talkpool's shareholding in the Swedish business with its technology and growing recurring revenues has been reduced to approximately 19%. Because of the divestments, the revenue target of 48 million Euro for year 2025 will be revised down. Some of the missing top-line will presumedly be compensated by continued rapid growth in the German network planning business, which had over 60% organic growth in 2022 and reached over 20% EBITDA by mid-2022.

The board of directors will continue its strategy work and present more guidance information ahead of the annual shareholder's meeting.

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