September 23 (SeeNews) - Bulgarian system integrator Telelink Business Services Group (TBS Group) revised downward its short-term profitability guidance for 2021 to flat from 17% growth forecast previously and its bottom-line guidance for 2022 to 11% decline from 4% growth projected earlier, it said.
However, TBS Group kept unchanged its guidance to double its revenues and profits by 2025, its CEO Ivan Zhitiyanov said last week in a presentation of the company's updated 2021-2025 financial outlook and strategic development plan, posted on the company's website.
Net profit margin was cut by 118 bps for 2021 and by 51 bps for 2022. From 2023 on, however, margins are projected to catch up to initial guidance on anticipated recovery in higher value added offerings, such as enterprise connectivity and managed services.
By 2025, EBITDA is expected to reach 21 million euro ($24.6 million), versus initially projected 21.3 million euro, while net profit is expected to surge to 15 million euro.
In the short term, the group slightly reduced its top line growth projections for 2021/2022 to 26% y/y at 87.4 million euro due to expectations for moderate slowdown in the second half of the year.
Bulgaria remains the group's most dominant geographical market with 56.3 million euro, or 48% of total revenue, and adjusted growth of 25.8% y/y.
In the longer term, projections remain mostly unchanged. For the 2021-2025 period, revenue is expected to keep its uptrend with a 17% CAGR driven by organic growth across markets and products, including entering new markets like Romania, Germany and the USA.
TBS Group was spun off from local company Telelink Bulgaria in 2019, becoming the sole owner of IT infrastructure, information security and digital transformation solutions provider Telelink Business Services and several other units of Telelink, engaged in similar activities.
($=0.829 euro)