Bulgaria's Telematic Interactive 9-mo cons net profit flat on higher expenses

Telematic Interactive grew its total revenue to 87.5 million levs in the review period from 74.5 million levs in January-September 2022, the company said in an interim financial statement.

The positive performance was driven by a 21% yearly rise in online casino gaming operating income to 76.9 million levs. The growth in revenue also resulted from the number of average monthly active users climbing by 22% year-on-year to 90,109, the company noted.

However, sports betting sales declined by 19.3% on the year to roughly 5.3 million levs because of the process of implementation of a new online betting platform, which is expected to lead to an uptick in user activity.

Telematic Interactive's expenses widened to some 67.6 million levs from 54.5 million levs a year earlier, chiefly due to a nearly 22% annual rise in costs for hired services to 40.1 million levs. Of those, payments to game publishers grew 29.3% on the year to 13.7 million levs in the first nine months of 2023. Salaries over the same period increased 39.5% to over 6 million levs, in part due to the higher number of employees.

Earlier in November, the owner of the Palms Bet casino brand said it plans to distribute a one-off gross dividend of 0.40 levs per share from accumulated profits, on top of an annual gross dividend of 1 lev per share for 2022.

Telematic Interactive has recorded a 2.6% decline in its stock value over the past 12 months, to a market capitalisation of 184 million levs, bourse data show. Shares in the company most recently closed at 14.20 levs on the Sofia bourse on Friday.

(1 euro = 1.95583 levs)