May 16 (SeeNews) - Bulgarian managed services provider Telelink Business Services Group [BUL:TBS] expects its net profit to fall 14% in 2023 to 4.8 million euro ($5.2 million), excluding the effect of potential acquisitions, it said in Tuesday.
Revenue is still projected to grow by 29% to 102.2 million euro this year, TBS Group said in an update to its medium-term financial outlook to 2027.
At the same time, TBS Group reiterated that it is looking at boosting its inorganic expansion in Southeast Europe (SEE) through mergers and acquisitions (M&A) focused on medium-sized IT infrastructure companies. The group will also aim to expand TBS Academy, its practical education programme, to Albania and North Macedonia.
TBS Group expects 78% of 2023 revenue, or 79.6 million levs, to be generated from operations in Bulgaria. Activities in Serbia, Montenegro, Bosnia and Herzegovina, and Slovenia are anticipated to contribute 9%. The share of revenue is forecast at 4.5% for Croatia, 3.9% for North Macedonia and Albania, and 3.6% in Romania.
The IT services group also estimates that revenue from the public sector will surge 95% by the end of the current year, to 73.4 million euro. In terms of product groups, IT infrastructure will make up the bulk of the company's revenue.
TBS Group's updated medium-term outlook for the 2024-2027 period, excluding potential acquisitions, includes a compound annual growth rate (CAGR) of 19% to 191.5 million euro in 2027. Net profit, over the same period, is expected to rise by a CAGR rate of 31% to reach 21.6 million euro in 2027. Operations in Germany and the U.S. are expected to have a roughly equal share of revenue to those in Bulgaria, or 34% compared to 35% in the home market.
In February, TBS Group announced that it is in talks for a potential investment in the company by a Luxembourg-registered fund of private equity firm CEECAT Capital.
($ = 0.9189 euro)