Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment improves as stock rises 42% After last week's 42% share price gain to €1.62, the stock trades at a trailing P/E ratio of 20.2x. Average trailing P/E is 20x in the IT industry in Germany. Total returns to shareholders of 385% over the past three years. Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €1.37, the stock trades at a trailing P/E ratio of 15.9x. Average trailing P/E is 24x in the IT industry in Germany. Total returns to shareholders of 304% over the past three years. New Risk • May 22
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: 3.4% Last year net profit margin: 6.5% 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 High level of non-cash earnings (40% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (3.4% net profit margin). Market cap is less than US$100m (€10.1m market cap, or US$11.8m). Board Change • May 20
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 2 non-independent directors. Independent Director Mats Palving was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • May 04
TalkPool AG, Annual General Meeting, May 22, 2026 TalkPool AG, Annual General Meeting, May 22, 2026, at 10:00 W. Europe Standard Time. Location: at the business premises of talkpool ag, gauggelistrasse 7, 7000 chur, chur Sweden Announcement • Nov 16
TalkPool AG Provides Earnings Guidance for the Fourth Quarter of 2025 and Maintains Earnings Guidance for the Full Year 2030 TalkPool AG provided earnings guidance for the fourth quarter of 2025 and maintained earnings guidance for the full year 2030. for the quarter, the company expects continued revenue growth, supported by ramp-ups in Pakistan and high volumes in the Americas.
for the year 2030, the company maintains the targets of EUR 40 million in revenues. Announcement • Nov 14
TalkPool AG to Report Q1, 2026 Results on May 29, 2026 TalkPool AG announced that they will report Q1, 2026 results on May 29, 2026 Announcement • Apr 08
TalkPool AG Provides Financial Guidance for the Year 2030 TalkPool AG provided financial guidance for the year 2030. For the year, the company expects Revenue: EUR 40 million (representing a CAGR of approximately 16.8% from EUR 15.76 million in 2024), driven by expansion in existing business and new remote services fuelled by increased use of technology tools. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: €0.022 (vs €0.024 in 2Q 2023) Second quarter 2024 results: EPS: €0.022 (down from €0.024 in 2Q 2023). Revenue: €3.69m (down 5.8% from 2Q 2023). Net income: €149.0k (down 6.7% from 2Q 2023). Profit margin: 4.0% (down from 4.1% in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has fallen by 27% per year, which means it is significantly lagging earnings. Announcement • Jun 25
Talkpool AG Elects Mats Palving to Its Board TalkPool AG held its ordinary annual shareholder's meeting on 25th of June 2024, Mats Palving were newly elected as board members. Reported Earnings • Jun 04
First quarter 2024 earnings released: EPS: €0.024 (vs €0.039 in 1Q 2023) First quarter 2024 results: EPS: €0.024 (down from €0.039 in 1Q 2023). Revenue: €3.97m (up 8.2% from 1Q 2023). Net income: €164.3k (down 37% from 1Q 2023). Profit margin: 4.1% (down from 7.1% in 1Q 2023). New Risk • May 27
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (20% average weekly change). High level of non-cash earnings (47% accrual ratio). Market cap is less than US$10m (€4.46m market cap, or US$4.84m). Announcement • Mar 13
TalkPool AG to Report Fiscal Year 2023 Results on Apr 30, 2024 TalkPool AG announced that they will report fiscal year 2023 results at 9:00 AM, Central European Standard Time on Apr 30, 2024 Reported Earnings • Mar 13
Full year 2023 earnings released: EPS: €0.14 (vs €0.18 in FY 2022) Full year 2023 results: EPS: €0.14 (down from €0.18 in FY 2022). Revenue: €15.9m (down 38% from FY 2022). Net income: €960.8k (down 21% from FY 2022). Profit margin: 6.1% (up from 4.8% in FY 2022). The increase in margin was driven by lower expenses. New Risk • Nov 21
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 89% 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 Share price has been highly volatile over the past 3 months (14% average weekly change). Negative equity (-€903k). Earnings are forecast to decline by an average of 30% per year for the foreseeable future. High level of non-cash earnings (89% accrual ratio). Market cap is less than US$10m (€2.81m market cap, or US$3.08m). Minor Risk Reported Earnings • Nov 18
Third quarter 2023 earnings released: EPS: €0.045 (vs €0.018 loss in 3Q 2022) Third quarter 2023 results: EPS: €0.045 (up from €0.018 loss in 3Q 2022). Revenue: €3.75m (down 35% from 3Q 2022). Net income: €307.9k (up €429.9k from 3Q 2022). Profit margin: 8.2% (up from net loss in 3Q 2022). Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 9.0% growth forecast for the IT industry in Germany. Announcement • Oct 28
Talkpool AG Appoints Magnus Sparrholm as Chief Executive Officer The Board of Directors of Talkpool AG has appointed its Chairman Magnus Sparrholm as Chief Executive Officer (CEO) ad interim of the Talkpool Group until further notice. Erik Strömstedt, who has led the company for many years, will work closely with Mr. Sparrholm to finalize the ongoing turnaround with a focus on telecommunications network services in existing markets. Rather than embarking on a challenging high-risk, high-reward investment banking route with substantial investments and acquisitions, the new management plans to streamline the business into a more traditional engineering services company. In addition to continuing its core business of planning, optimising, and maintaining telecoms networks, Talkpool intends to increase the use of technology in its service offerings. Instead of developing its own solutions, Talkpool will resell and integrate technology from other companies. This will allow Talkpool to meet customer demand for automation offerings without having to make large investments. In the short term, Talkpool's management will focus on accelerating the sale of Talkpool's 89% stake in the largest telecom network services company in Pakistan. The aim is to complete the sale of the Pakistani shareholding before the end of the year with a valuation of USD 4 million. Following the sale of the Pakistan business, Talkpool has secured its own growth funding for the foreseeable future. Finally, Talkpool will work to significantly increase the value of the TALK share from the current price of around SEK 4 per share. With a total of 6,778,097 shares, Talkpool is currently valued to approximately SEK 27 million, or EUR 2.3 million. Talkpool's management has an ambition to introduce a dividend and share buy-back scheme as soon as the liquidity allows for doing so, tentatively latest by the end of year 2024. Announcement • Sep 20
Talkpool Ag Reaches A Settlement with Lcc Middle East Fz-Llc Talkpool AG reached a settlement with LCC Middle East FZ-LLC. The parties have agreed that Talkpool AG will pay a total of 220'000 USD in September until November 2023 as final settlement instead of 1.2 million USD deferred payments as previously agreed. After receiving the total 220'000 USD amount, LCC agrees to release all shares pledged by (the private person) Magnus Sparrholm, who pledged the shares as security for the deferred payments. The complete transaction including payments an release of pledged shares is expected to be finalised before the end of 2023. By settling this dispute regarding the amount of deferred payments for the purchase of LCC Pakistan, Talkpool ends its only ongoing legal court case and thereby substantially reduces its risk exposure. After executing this settlement, there will be no outstanding pledged TALK shares. Talkpool expects the settlement to result in an extraordinary income in 2023. Board Change • Sep 17
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Faisal Hamdard was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Sep 14
TalkPool AG Announces Executive Changes The board of directors of Talkpool AG has appointed board member Franco De Rose as chief executive officer (CEO) of Talkpool Group (Talkpool). Erik Strömstedt, Talkpool's former long-time CEO, will continue his journey with Talkpool as an advisor to assist with the transition. Franco brings over 35 years' experience in the finance sector, including in investment banking and principal investments. With his extensive background in finance, it believe Franco is the right person to lead and create the financial conditions to prepare the company for accelerated growth. Reported Earnings • Sep 02
Second quarter 2023 earnings released: EPS: €0.024 (vs €0.014 in 2Q 2022) Second quarter 2023 results: EPS: €0.024 (up from €0.014 in 2Q 2022). Revenue: €3.91m (down 42% from 2Q 2022). Net income: €159.8k (up 70% from 2Q 2022). Profit margin: 4.1% (up from 1.4% in 2Q 2022). Revenue is forecast to stay flat during the next 3 years compared to a 9.5% growth forecast for the IT industry in Germany. Announcement • Aug 31
TalkPool AG to Report Fiscal Year 2023 Results on Mar 12, 2024 TalkPool AG announced that they will report fiscal year 2023 results on Mar 12, 2024 Board Change • Jun 29
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Nico Tschanz was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jun 22
TalkPool AG Elects Franco De Rose and Faisal Hamdard as New Board Members TalkPool AG announced that at its ordinary annual shareholder's meeting on Wednesday the 21st of June 2023, Franco De Rose and Faisal Hamdard were elected as new board members. New Risk • Jun 12
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 46% 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 Share price has been highly volatile over the past 3 months (14% average weekly change). Negative equity (-€1.2m). Earnings are forecast to decline by an average of 28% per year for the foreseeable future. High level of non-cash earnings (46% accrual ratio). Market cap is less than US$10m (€2.34m market cap, or US$2.52m). Minor Risk Reported Earnings • Jun 02
First quarter 2023 earnings released: EPS: €0.039 (vs €0.034 loss in 1Q 2022) First quarter 2023 results: EPS: €0.039 (up from €0.034 loss in 1Q 2022). Revenue: €3.67m (down 40% from 1Q 2022). Net income: €261.5k (up €489.3k from 1Q 2022). Profit margin: 7.1% (up from net loss in 1Q 2022). The move to profitability was driven by lower expenses. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 9.6% growth forecast for the IT industry in Germany. Reported Earnings • Mar 11
Full year 2022 earnings released: EPS: €0.13 (vs €0.074 loss in FY 2021) Full year 2022 results: EPS: €0.13 (up from €0.074 loss in FY 2021). Revenue: €25.5m (up 4.0% from FY 2021). Net income: €879.0k (up €1.37m from FY 2021). Profit margin: 3.5% (up from net loss in FY 2021). The move to profitability was primarily driven by higher revenue. Revenue is forecast to stay flat during the next 2 years compared to a 9.6% growth forecast for the IT industry in Germany. Announcement • Jan 24
TalkPool AG Provides Revenue Guidance for the Year 2022 TalkPool AG provided revenue guidance for the year 2022. Based on preliminary 2022 estimates, Talkpool expects to report its first full-year consolidated net profit after tax since its IPO. Announcement • Jan 08
TalkPool AG to Report Fiscal Year 2022 Results on Mar 10, 2023 TalkPool AG announced that they will report fiscal year 2022 results on Mar 10, 2023 Reported Earnings • Nov 20
Third quarter 2022 earnings released: €0.018 loss per share (vs €0.016 profit in 3Q 2021) Third quarter 2022 results: €0.018 loss per share (down from €0.016 profit in 3Q 2021). Revenue: €5.79m (flat on 3Q 2021). Net loss: €122.0k (down 216% from profit in 3Q 2021). Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 11% growth forecast for the IT industry in Germany. Announcement • Oct 19
Cejege B.V. agreed to acquire remaining 61.82% stake in Camouflage B.V. from TalkPool AG (OM:TALK) for € 13 million. Cejege B.V. agreed to acquire remaining 61.82% stake in Camouflage B.V. from TalkPool AG (OM:TALK) for € 13 million on October 17, 2022. Transaction is expected to be closed on November 11, 2022. Announcement • Sep 29
Talkpool's New Lorawan Refrigerant Leak Detector Receives Approval for BREEAM In-Use Talkpool AG has developed a new sensor that measures the R-32 refrigerant, in close cooperation with Revelop, one of Sweden's most innovative real estate companies. The Talkpool sensor can be used to detect leakages in refrigeration- and cooling systems that use R-32 or any other hydrocarbon-based refrigerant. Revelop and Talkpool have installed an early version of the sensor and integrated it with a building management system as part of Revelop's BREEAM In-Use certification program of their property portfolio. The results are very positive, and the sensor has been approved for BREEAM In-Use. This means that in addition to the obvious health and safety benefits, the OY1220 LoRaWAN refrigerant leak detector also supports a higher score related to BREEAM and similar property certification programs. The OY1220 LoRaWAN Refrigerant leak detector can now be pre-ordered. The device will be available in large volumes starting November. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: €0.014 (vs €0.01 loss in 2Q 2021) Second quarter 2022 results: EPS: €0.014 (up from €0.01 loss in 2Q 2021). Revenue: €6.76m (up 8.3% from 2Q 2021). Net income: €93.8k (up €158.2k from 2Q 2021). Profit margin: 1.4% (up from net loss in 2Q 2021). Over the next year, revenue is forecast to stay flat compared to a 13% growth forecast for the IT industry in Germany. Announcement • Jun 09
TalkPool AG Internationally Launches Revolutionary Radon Gas Sensor Based on LoRaWAN TalkPool AG internationally launches revolutionary Radon Gas Sensor based on LoRaWAN. The device measures radon gas levels extremely fast and reports the data directly, online. This enables Smart Building Solutions, supports Green Building Certifications and allows for unique control of ventilation systems based on real-time Radon data. The product is now available for EMEA wide distribution. Radon gas is a severe problem in many areas of the world, being the second most frequent cause of lung cancer. It is released from rock and soil as well as materials derived thereof, such as building materials. Outdoors, it quickly disperses, but indoors, it can get trapped and reach dangerously high levels. Good ventilation is crucial to prevent this. In many countries, regulations stipulate that radon levels need to be measured in certain locations, either periodically or continuously. Talkpool's new device, the OY1500 LoRaWAN Radon gas sensor, uses high voltage sensing technology and is due to this one of the most sensitive radon units on the market. High sensitivity means that rapid variations in the radon content are registered more correctly. In combination with the LoRaWAN network connectivity, this has resulted in a revolutionary device on the market for radon measurements that sends actionable data to the internet in real-time, allowing for control of ventilation systems. For competing, less sensitive, radon sensors, this isn't possible since they present the floating 24-hour average value. As a result of this, ventilation systems can be activated when radon levels increase, thereby ensuring a safe environment for the building users. On the other hand, when the building is not in use, like for example a school building at night, ventilation systems can be turned off to save energy, to be activated again in time before the day starts. This can thereby tackle key safety-, sustainability- and financial targets of real estate owners and facility managers. Next to the device's ability to take very rapid measurements, it also is designed for long-term installation into a building. The measurement data is reported over the internet. The device is tamper-proof, with a sensor in it that detects movement and sends an alarm in real-time. These measurements support green building certifications and help to create a safe, healthy indoor environment. The device has been co-developed by Talkpool, experts in radio technology and IoT solutions for the real estate industry, and by the world leading radon sensor technology company. As it transmits data wirelessly, it is extremely easy to install. To get high quality measurement data of radon gas requires calculations that require more power than is possible for the device's battery capacity, therefore, the calculations are done online instead. The advanced calibration and verification of the measured data results in measurements that are verified to the NIST standard and can therefore be used for official reporting duties in line with regulations. Reported Earnings • May 21
First quarter 2022 earnings released: €0.034 loss per share (vs €0.057 loss in 1Q 2021) First quarter 2022 results: €0.034 loss per share (up from €0.057 loss in 1Q 2021). Revenue: €6.14m (up 7.8% from 1Q 2021). Net loss: €227.7k (loss narrowed 37% from 1Q 2021). Over the next year, revenue is forecast to grow 2.8%, compared to a 23% growth forecast for the industry in Germany. Announcement • Apr 08
Purus and Talkpool Release LoRaWAN Smart Floor Drain on the Nordbygg Trade Show Purus, and Talkpool present a floor drain, which has a built-in sensor device to detect water leakages. This `smart' floor drain will provide an alarm when a leakage is detected, thereby preventing expensive costs related to water damages. In Sweden alone, water damages cost real estate owners more than half a billion EUR per year. Announcement • Mar 23
TalkPool AG to Report Fiscal Year 2022 Final Results on Apr 14, 2023 TalkPool AG announced that they will report fiscal year 2022 final results on Apr 14, 2023 Reported Earnings • Mar 11
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: €0.065 loss per share (up from €0.21 loss in FY 2020). Revenue: €24.4m (up 15% from FY 2020). Net loss: €436.8k (loss narrowed 62% from FY 2020). Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 14%, compared to a 16% growth forecast for the industry in Germany. Announcement • Feb 19
ZT Group agreed to acquire Pakistani business of Talkpool from TalkPool AG (OM:TALK) for $3.7 million. ZT Group agreed to acquire Pakistani business of Talkpool from TalkPool AG (OM:TALK) for $3.7 million on February 17, 2022. TalkPool have1300 employees worldwide and has approximately 900 employees in Pakistan, Post completion total number of employees in Talkpool Group will be reduced to approximately 400. Expecting closing conditions to be met latest by the June 30, 2022. Reported Earnings • Nov 19
Third quarter 2021 earnings released: EPS €0.016 (vs €0.005 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: €5.83m (up 14% from 3Q 2020). Net income: €105.3k (up 265% from 3Q 2020). Profit margin: 1.8% (up from 0.6% in 3Q 2020). Reported Earnings • Aug 26
Second quarter 2021 earnings released: €0.01 loss per share (vs €0.05 loss in 2Q 2020) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2021 results: Revenue: €6.25m (up 28% from 2Q 2020). Net loss: €64.4k (loss narrowed 74% from 2Q 2020). Announcement • Aug 25
TalkPool AG Provides Revenue Guidance for the Year 2021 and 2025 TalkPool AG provided revenue guidance for the year 2021 and 2025. For the year 2021, the company expects total revenue to be EUR 25 million.
For the year 2025, the company expects total revenue to be EUR 48 million.