Telematic Interactive 2023 H1 review

• The company announced a GSM on 18.09.2023 where a decision for share buyback will be proposed under the following terms: price range BGN 14- 17, deadline – 31.12.2024, maximum amounts – 3% of the issued shares p.a.
• Telematic Interactive Bulgaria AD reported 22.6% revenue growth for H1 YoY reaching BGN 56.9mln. Casino revenues take the lion’s share of BGN 50.1mln or 88.0% of the total after an impressive 22.6% YoY growth. Sports-betting reached BGN 4.2mln, which marked a slight decrease, but that was due to the migration to a new sports-betting platform in Q2. The new platform has better functionalities and is expected to have a positive role in growing this business in the future. Still, this line accounts for 7.4% of the total revenues.
• The remaining 4.6% is revenues from providing gaming content to B2B customers, which grew at 28.3%. The significant jump of this business line is explained by its comparatively small size, but the company has strong expectations for its potential. This account also makes the major difference between the individual and consolidated revenues.
• The main reason behind the increasing revenues is the increased monthly average active clients. The new CRM system, as well as staff training towards a more individually targeted approach, has lead to a 32% increase in this metric, to reach a total of 94,495 active clients per month. The conversion rate has stayed at the previously reported levels of 36% and the churn rate still stays at impressive for the industry levels of 4%.
• OPEX increased proportionately a notch more than sales – by 22.7% to BGN 43.2mln. Of that, the biggest contributors are the employee cost, which increased 48.8% to reach BGN 4.4mln. External services increased 19.9% and in it the biggest sub accounts were for payment services, which made a massive jump of 31.7% to BGN 8.8mln and software services going up 71.6% to BGN 1.5mln. Marketing expenses stayed fairly constant going up slightly to BGN 8.9mln from BGN 8.4mln.
• Other expenses, which is mostly the tax levied on gambling profits, increased 19% to BGN 25.6mln. The account is expected to increase with increased revenues.
• The operations in Peru commenced in May with the website being fully functional and providing full access to the local clients. The company plans to let it operate without significant promotion in order to evaluate local clients mentality better and be more efficient with the marketing costs. Then, around the end of Q3, beginning of Q4, active marketing is expected to be deployed.

Full report can be accessed here.