“Telematic Interactive Bulgaria AD, the owner of licensed platform for casino and sport betting Palms Bet, is going to pay divident from 2021 profit”.
This was announced by the company’s management at a webinar about the upcoming initial public offering of shares where the company was presented to potential investors and the media. The process wil begin on February 14th.
The company has incorporated in its Article that 40% of the profit to be distributed as a divident every year. Sa far, there is data available for the financlial results at the end of Q3 of 2021 which is at about BGN 14,4 million profit compare to BGN 4,937 million at the end of Q3 2020.
By the end of June the General meeting of shareholders in the company will be held at which the divident will be voted.
No more shares will be sold
According to the prospectus of Telematic 400 000 new shares will be offered to the investors and if there is an interest – there will be sold to 400 000 existing shares. Milo Borisov – one of the owners of the company, commented that there won’t be sold more existing shares.
According to him, it has become clear from the initial conversations with investors that there will be interest in the emission from large investors. Therefore, the sale of additional shares is proposed, so that more smaller investors are attracted and “there will be more liquidity” in his words.
Borisov said that with the debut at BSE ‘we are going to show that our business is transparent, socially responsible and has a potential for development in Bulgaria and other countries”.
The gathered fund from BSE is going to be used for entering new markets – Peru and Ukraine, which are less developed and low competitive.
Latin America – key region for the company
The other owner of the company – Rossi McKee, who is sister of Borisov, comment that Latin America is key region for the company – it is less developed and has a really good potential. According to H2GS data online gambling in Latin America is 2% of the world gambling and generates annual growth of 19%.
Peru is well known market for the company, as it has had an office and team there since 2008.
Since 2019 Telematic broaden the region – Peru, Mexico, Argentina, Columbia and Chili, with the CT Interactive’s products which are online slot games. According to her words the games are already well known among operators and clients.
This year an online operation in Peru will begin. The country has been chosen not only because of the specifics of the market but also because of the conductive demographic picture and huge percentage of solvent population, most of them – young people.
If the political situation is right in 2023 Telematic will expand its operation in Ukraine, added Borisov. The plan is also to extend the European market by B2B measures which include integrators which broaden the games of the company among other sites. Since January the company is live on the Kenya market.
Rapid growth in revenue and profit
Telematic reports a strong growth in revenue and profit in recent years.
Lachezar Petrov – CEO of the company comments that 40-fold increase in revenues was reported in the period 2018-2021. The active customer base has grown about 34 times, he adds.
The company’s reports showed that for the period January – September 2021 the income from bets is BGN 53.9 million compared to BGN 17.638 million for the same period in 2020. For the whole of 2020 the income from bets was over BGN 28.4 million, and for 2019 – BGN 4.6 million.
The profit also grows exponentially – from BGN 287 thousand in 2019 to almost BGN 7.4 million in 2020 and BGN 14.4 million till September 2021.
The expenses are with moving with slower growth, which is determined by outsourced services and the expansion of the company via integrators which collect taxes as well as marketing. Taxes and fees are larger in terms of expenditure.
For the first nine months of 2021 outsourced expenses have reached BGN 23.5 million compared to BGN 7.132 million for the same period in 2020. The expenses for game providers were BGN 8.285 million compared to BGN 3.264 million BGN. For advertising they amount to almost 10.5 million BGN compared to 2.784 million BGN. 163 thousand BGN for consulting services compared to 9 thousand BGN, bank fees are 3.664 million BGN compared to 811 thousand BGN etc.
Till September 30, 2021, the company has paid fees of BGN 10.7 million under the Gambling Law compared to BGN 4.4 million for the same period a year earlier.