Valuation Update With 7 Day Price Move • Jan 08
Investor sentiment deteriorates as stock falls 42% After last week's 42% share price decline to €6.00, the stock trades at a trailing P/E ratio of 6.1x. Average trailing P/E is 20x in the IT industry in Europe. Total loss to shareholders of 48% over the past three years. New Risk • Dec 03
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 43% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Shares are highly illiquid. Earnings have declined by 0.5% per year over the past 5 years. High level of non-cash earnings (43% accrual ratio). Minor Risk Market cap is less than US$100m (лв126.7m market cap, or US$75.5m). Valuation Update With 7 Day Price Move • Dec 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to лв10.30, the stock trades at a trailing P/E ratio of 11x. Average trailing P/E is 19x in the IT industry in Europe. Total loss to shareholders of 10% over the past three years. Reported Earnings • Sep 04
Second quarter 2025 earnings released Second quarter 2025 results: Revenue: лв60.5m (up 92% from 2Q 2024). Net income: лв5.40m (up лв5.75m from 2Q 2024). Profit margin: 8.9% (up from net loss in 2Q 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 12% per year, which means it is performing significantly worse than earnings. New Risk • Jun 18
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.8% Last year net profit margin: 6.0% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 8.2% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (2.8% net profit margin). Market cap is less than US$100m (лв113.8m market cap, or US$67.2m). Anuncio • May 20
Telelink Business Services Group AD (BUL:TBS) reached an agreement on the substantial contractual terms and conditions to acquire 70% stake in Actual I.T., d.d. from DBA Group S.p.A. (BIT:DBA) and DBA d.o.o. for €15.8 million. Telelink Business Services Group AD (BUL:TBS) reached an agreement on the substantial contractual terms and conditions to acquire 70% stake in Actual I.T., d.d. from DBA Group S.p.A. (BIT:DBA) and DBA d.o.o. for €15.8 million on May 19, 2025. Telelink Business Services Group AD will acquire 33.56% or 0.68 million shares from DBA Group S.p.A. and 36.44% or 0.74 million shares from DBA d.o.o. Upon completion, DBA d.o.o. will retain the remaining 30% stake. The transaction also includes the call and put options to acquire the remaining 30% stake exercisable by either party following the third year after closing. All terms and conditions agreed between the parties shall become effective solely upon the signing of the Share Purchase Agreement and its formal notarization before a notary public in Slovenia. These formalities are expected to be completed by the end of May 2025.
The completion of the transaction remains conditional upon the fulfilment of certain conditions precedent, including, inter alia, the receipt of the required approvals from the competent antitrust authorities and approval from the shareholders of Telelink Business Services Group AD. Provided that all such conditions precedent, as stipulated in the Share Purchase Agreement, are duly satisfied, the closing of the transaction is anticipated to occur by the end of 2025. The transaction has been approved the board of directors of DBA Group S.p.A. New Risk • May 12
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Bulgarian stocks, typically moving 7.1% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (7.1% average weekly change). Earnings have declined by 4.5% per year over the past 5 years. Minor Risk Market cap is less than US$100m (лв113.7m market cap, or US$65.4m). Reported Earnings • Mar 03
Full year 2024 earnings released: EPS: лв0.94 (vs лв0.76 in FY 2023) Full year 2024 results: EPS: лв0.94 (up from лв0.76 in FY 2023). Revenue: лв224.8m (up 21% from FY 2023). Net income: лв11.7m (up 24% from FY 2023). Profit margin: 5.2% (up from 5.1% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. New Risk • Feb 27
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Bulgarian stocks, typically moving 4.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 5.8% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (4.8% average weekly change). Profit margins are more than 30% lower than last year (4.0% net profit margin). Market cap is less than US$100m (лв117.3m market cap, or US$62.8m). Anuncio • Feb 18
Telelink Business Services Group AD (BUL:TBS) announces an Equity Buyback for 200,000 shares. Telelink Business Services Group AD (BUL:TBS) announces a share repurchase program. Under the program, the company will repurchase up to 200,000 shares. The shares will be repurchased at a price falling in the price range from BGN 7.4 per share to BGN 15 per share. The program is valid until the end of the year. As of February 17, 2025, the company has 12,500,000 shares. Reported Earnings • Dec 02
Third quarter 2024 earnings released Third quarter 2024 results: Revenue: лв50.2m (down 1.7% from 3Q 2023). Net income: лв2.73m (down 46% from 3Q 2023). Profit margin: 5.4% (down from 9.9% in 3Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 4.9% growth forecast for the IT industry in Europe. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Reported Earnings • Aug 05
Second quarter 2024 earnings released: лв0.021 loss per share (vs лв0.22 profit in 2Q 2023) Second quarter 2024 results: лв0.021 loss per share (down from лв0.22 profit in 2Q 2023). Net loss: лв264.0k (down 110% from profit in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has fallen by 15% per year, which means it is performing significantly worse than earnings. Anuncio • Jun 21
Telelink Business Services Group AD (BUL:TBS) announces an Equity Buyback for 25,000 shares. Telelink Business Services Group AD (BUL:TBS) announces a share repurchase program. Under the program, the company will repurchase up to 25,000 shares. The shares will be repurchased at a price falling in the price range from BGN 7.4 per share to BGN 20 per share. The purpose of the program is to support the group's investment activities and provide shares as part of an incentive program for management and employees of the company and its subsidiaries. The program is valid until the end of the year. As of June 20, 2024, the company has 12,500,000 shares. Reported Earnings • Jun 04
First quarter 2024 earnings released First quarter 2024 results: Revenue: лв41.3m (up 53% from 1Q 2023). Net income: лв2.33m (up лв2.27m from 1Q 2023). Profit margin: 5.6% (up from 0.2% in 1Q 2023). The increase in margin was driven by higher revenue. Reported Earnings • Mar 03
Full year 2023 earnings released: EPS: лв0.73 (vs лв0.88 in FY 2022) Full year 2023 results: EPS: лв0.73 (down from лв0.88 in FY 2022). Revenue: лв185.7m (up 20% from FY 2022). Net income: лв9.08m (down 17% from FY 2022). Profit margin: 4.9% (down from 7.0% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 17% per year whereas the company’s share price has fallen by 16% per year. Anuncio • Feb 15
Telelink Business Services Group AD (BUL:TBS) signed an agreement to acquire Sedam It D.O.O. for €9 million. Telelink Business Services Group AD (BUL:TBS) signed an agreement to acquire Sedam It D.O.O. for €9 million on February 13, 2024. The final purchase price will be paid in stages, based on the agreed company value and depending on its financial debt, cash and net working capital at the date of transfer of company shares, as well as its financial results for 2024 and 2025. Anuncio • Dec 19
Telelink Business Services Group AD to Report Q3, 2023 Results on Dec 21, 2023 Telelink Business Services Group AD announced that they will report Q3, 2023 results on Dec 21, 2023 Reported Earnings • Dec 02
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: лв51.3m (up 45% from 3Q 2022). Net income: лв5.05m (up 77% from 3Q 2022). Profit margin: 9.8% (up from 8.1% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the IT industry in Europe. Reported Earnings • Aug 31
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: лв32.7m (down 19% from 2Q 2022). Net income: лв1.24m (down 67% from 2Q 2022). Profit margin: 3.8% (down from 9.2% in 2Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Anuncio • Jun 16
Telelink Business Services Group AD to Report Q1, 2023 Results on Jun 20, 2023 Telelink Business Services Group AD announced that they will report Q1, 2023 results on Jun 20, 2023 Reported Earnings • Jun 02
First quarter 2023 earnings released First quarter 2023 results: Revenue: лв27.1m (down 14% from 1Q 2022). Net income: лв55.0k (down 95% from 1Q 2022). Profit margin: 0.2% (down from 3.7% in 1Q 2022). The decrease in margin was driven by lower revenue. Reported Earnings • Mar 04
Full year 2022 earnings released: EPS: лв0.88 (vs лв0.99 in FY 2021) Full year 2022 results: EPS: лв0.88 (down from лв0.99 in FY 2021). Revenue: лв155.4m (down 6.2% from FY 2021). Net income: лв11.0m (down 11% from FY 2021). Profit margin: 7.1% (down from 7.5% in FY 2021). The decrease in margin was driven by lower revenue. Reported Earnings • Dec 01
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: лв35.6m (down 1.3% from 3Q 2021). Net income: лв2.86m (up 30% from 3Q 2021). Profit margin: 8.0% (up from 6.1% in 3Q 2021). The increase in margin was driven by lower expenses. Upcoming Dividend • Sep 27
Upcoming dividend of лв0.81 per share Eligible shareholders must have bought the stock before 04 October 2022. Payment date: 11 October 2022. Trailing yield: 6.3%. Lower than top quartile of Bulgarian dividend payers (6.6%). Higher than average of industry peers (2.4%). Anuncio • Aug 20
Telelink Business Services Group AD Proposes Distribution of A Semi-Annual Dividend Telelink Business Services Group AD proposes Distribution of a semi-annual dividend to the total amount of BGN 10,125,000 (formed of BGN 2,429,535.15 from the 2021 profit and BGN 7,695,464.85 from the first half profit of 2022) in terms of BGN 0.81 gross dividend per share. Anuncio • Jun 19
Telelink Business Services Group AD Approves Dividend for the Year 2021 On 17 June 2022, the Managing Board of Telelink Business Services Group AD approved the annual financial statements and annual report of TelelinkBusiness Services AD for 2021 and resolved upon the distribution of a dividend from the subsidiairy's profit for 2021 in the amount of BGN 10,365,899.00. Upcoming Dividend • Sep 20
Upcoming dividend of лв0.82 per share Eligible shareholders must have bought the stock before 27 September 2021. Payment date: 07 October 2021. Trailing yield: 5.1%. Lower than top quartile of Bulgarian dividend payers (5.2%). Higher than average of industry peers (1.4%). Is New 90 Day High Low • Jan 15
New 90-day high: лв12.50 The company is up 14% from its price of лв11.00 on 15 October 2020. The Bulgarian market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 7.0% over the same period. Is New 90 Day High Low • Nov 05
New 90-day high: лв11.60 The company is up 46% from its price of лв7.95 on 07 August 2020. The Bulgarian market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is down 2.0% over the same period. Is New 90 Day High Low • Oct 10
New 90-day high: лв11.30 The company is up 48% from its price of лв7.65 on 10 July 2020. The Bulgarian market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 8.0% over the same period. 
