Talkpool presents its Q1 interim report
Talkpool presents its Q1 interim report |
| [15-May-2025] |
CHUR, Switzerland, May 15, 2025 /PRNewswire/ -- In the third first quarter of 2025, Talkpool transitions into a growth phase. Reduced costs lead to higher profit margins while agreemensts for technology tools involving Artificial Intelligence open opportunities for future growth. JANUARY – MARCH 2025
JANUARY – MARCH KEY DEVELOPMENTS
Talkpool works behind the scenes to plan, build and improve large communication networks. The company partners with Original Equipment Manufacturers to distribute, integrate and maintain technology that enhances telecommunication infrastructure. Talkpool has global geographical reach and experience, but it has reduced its geographical focus. Competences include planning, implementation, project management, optimization and maintenance of fixed and mobile telecom networks. After a turnaround period that has taken several years, the business is set to start growing in 2025. The first quarter often has lower revenues compared to subsequent quarters. However, the first quarter of 2025 was not only the strongest first quarter ever, but arguablky the best-performing quarter in the company's history. Key Financial Highlights – Q1 2025:
Our German operations continued to outperform both internal targets and forecasts. The Swiss company delivered strong operational profits—driven by its high-performing Operation & Maintenance project in the Caribbean and lean headquarter costs. The Pakistan business started the year below expectations with low revenues, low profit margins and high investments in future growth. Business development activities have intensified in the United States, where Talkpool is in advanced discussions with leading optical fiber network operators. A network services trial is currently underway, potentially paving the way for broader market entry. In parallel, Talkpool is considering a strategic re-entry into the Swedish market, targeting the rising demand for secure mobile communications technology. In March, the company attended #MWC25, the world's largest wireless event in Barcelona, where it signed two strategic contracts for Artificial Intelligence-based tools. To support ongoing growth, Talkpool has expanded its sales team while maintaining strong cost discipline. The TALK share price (ISIN CH0322161768) rose from SEK 6.20 to SEK 7.96 during the quarter despite very low Investor Relations activities. Beginning of the second quarter 2025 Launching "Vision 2030" – A Strategic Roadmap for Accelerated Growth In early April, Talkpool launched "Vision 2030", a forward-looking growth strategy aimed at propelling the company into its next phase of development. Following three consecutive years of improved operational cash flow and increasing profitability, Talkpool has now laid the foundation for accelerated, sustainable growth. Key pillars of the Vision 2030 strategy include:
With a strengthened balance sheet, streamlined operations, and a clear strategic direction, Talkpool is well-positioned to capitalize on next-generation telecommunications opportunities, driving long-term value for shareholders and stakeholders alike. Talkpool's new growth strategy includes:
In early April, Talkpool presented its fiber optic network design and documentation tools and services at Germany's largest broadband trade fair in Frankfurt. The event served as a key platform to strengthen industry presence, forge valuable new relationships, and initiate promising discussions around future project opportunities. In Pakistan, Talkpool had by April secured EUR 4.5 million in orders booked for 2025, already surpassing the entire 2024 revenue for that market. All additional orders will now directly contribute to year-over-year growth, underscoring a strong demand and positive momentum —even though Q1 revenue came in slightly below expectations. KEY FINANCIAL FIGURES
The Key Figures display revenue growth and significantly improved profitability in Q1 2025 compared to the same quarter last year. Particularly noteworthy is the increase in profit margins (GM, EBITDA, EBIT) that has been achieved through a more efficient cost structure. SALES AND GROSS MARGIN JANUARY - MARCH Revenues grew by 6.4% to EUR 4'227 thousand compared to EUR 3'974 thousand in the same period last year. The 6.1% growth is higher than expected. The gross margin increased to 29.7%. This is much better than 26.6% in the same period last year and 20.3% in Q1 2023. EBITDA JANUARY - MARCH EBITDA reached 14.7% and EBIT reached 13.8%. This is much higher compared to same period last year, and it's above Talkpool's long-term EBITDA target. NET PROFIT JANUARY - MARCH The net Earnings After Tax (EAT) in Q1 2025 amounted to EUR 343 thousand. This is more than double compared to EUR 166 thousand in the same quarter 2024. KEY FINANCIAL POSITION AND CASHFLOW
The equity continued the long-term strengthening trend to reach EUR 1'352 thousand by the end of March 2025. The equity ratio has improved significantly compared to Q1 2024, indicating a strengthened balance sheet. The return on equity has fallen compared to Q1 2024, but at 28.7%, it remains at an attractive level. The decline can be explained by the increased equity base and lower extraordinary income. The net debt increased from negative EUR 786 thousand to negative EUR 1'036 thousand in Q1 2025. The net debt is substantially down from negative EUR 1'918 thousand at the end of Q1 last year and the company expects Net Debt to reach zero this year. CASH-FLOW AND INVESTMENTS JANUARY - MARCH Cash increased slightly to EUR 1'399 thousand in the quarter, up from EUR 1'361 thousand at the end of last year. The operating cashflow improved to (positive) EUR 22 thousand from negative EUR 96 thousand in the same period last year. This indicates an improvement in liquidity from ongoing operations. Talkpool Group shows an improved capital structure in Q1 2025 with a higher equity ratio, lower debt and a positive operating cash flow. The return on equity has decreased, but it remains at a healthy level. Overall, a financial stabilization and positive development can be observed compared to the same quarter last year. Please download the full report from Press releases – Talkpool for further information This disclosure contains information that TalkPool AG is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 15-05-2025 10:30 CET. CONTACT: magnus.sparrholm@talkpool.com +41 81 250 20 20 This information was brought to you by Cision http://news.cision.com https://news.cision.com/talkpool-ag/r/talkpool-presents-its-q1-interim-report,c4150883 The following files are available for download:
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Company Codes: ISIN:CH0322161768, Stockholm:TALK |
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