At the end of the first quarter of this year, Telematic Interactive Bulgaria’s net profit amounted to BGN 6.067 million compared to BGN 4.588 million at the end of March 2021, which is an increase of 32.25%. The profit margin has grown by nearly 27%. The company has also increased its revenue by approximately a third in comparison to 2021. This is what the company representatives announced during a press conference.
It became clear that the profit margin is remaining stable in the conditions of strongly increased competition. The number of active clients has increased significantly – from 11, 744 at the end of the first quarter of 2020 to 65,944 at the end of March, 2022. The increment in the clientele base additionally led to a decrement in the average revenue per client.
The company also reports that the entry of a large number of new operators and their mass advertising campaigns have increased the cost of attracting new customers.
Since the beginning of the year, funds have doubled as a result of capital growth and high operating cash flow. Telematic Interactive Bulgaria has not made investments in fixed assets. It was commented that a minimal increase of BGN 93 thousand is used as a loan for the development of the investment in the new operation in Kenya.
The company significantly increased its assets on an annual basis to BGN 54.875 million at the end of March 2022 in comparison to BGN 32.391 million at the end of March 2021, or by 69.4%.
The war in Ukraine changed the company’s plans for expansion. For the time being, Telematic froze its entry into the Ukrainian market by registering a local company, but it did not transfer the necessary capital.
The war had have a negative effect on the revenues of the gaming subsidiary of Telematic Interactive CT Interactive, but on the revenues of the entire group the influence was less than 1%, according to the company’s report.
However, the company leads active communication with local operators in Peru about their acquisition and is simultaneously preparing its own operation. Telematic is also planning to expand its market share in Kenya.
The plans for CT Interactive include expanding market shares in Europe and Latin America and finalizing the technical support with new partners, which, according to the company’s management, will lead to better results. The company plans to develop a new line of products and add new games to existing markets.