Bulgaria's Sirma Group Holding Q1 cons net profit, revenue fall

Sirma Group Holding's revenue went down to 19.3 million levs in the first three months of this year from 20.1 million levs in the like period of 2022, the company said in an interim financial statement published on Tuesday.

The decline in revenue resulted mainly from a 16.3% drop in sales of consulting services even as sales of IT products grew by 38% on the year to some 7.1 million levs.

The group's operating expenses increased to 18.8 million levs in the first quarter from 18.1 million levs a year earlier, mostly due to higher salary costs.

Sirma Group Holding said that it does not expect its revenue to decline to an extent that would affect its ability to cover current obligations under existing loans. The company also said that it continues to be on the lookout for potential investments in companies that would improve return for shareholders of the parent company.

Earlier this month, the group established Sirma Venture Lab, a business incubator to fund local technology start-ups with growth potential.

As at 1447 CEST on Wednesday, shares in Sirma Group Holding traded 3.10% higher at 0.665 levs on the Bulgarian Stock Exchange.

(1 euro = 1.95583 levs)