CHUR, Switzerland, March 14, 2025 /PRNewswire/ -- The network technology service provider Talkpool presents another year of stable financial results. The company has reduced to the MAX while preparing for growth.
This is a summary of Talkpool's interim financial results for 24Q4 and the calendar year 2024. The full 13-page report is available on Published Financial Reports & Filings - Talkpool [https://c212.net/c/link/?t=0&l=en&o=4383362-1&h=3565684769&u=https%3A%2F%2Ftalkpool.com%2Ffinancial-reports%2F&a=Published+Financial+Reports+%26+Filings+%E2%80%93+Talkpool].
THE FOURTH QUARTER OF 2024 IN BRIEF (OCT 1ST - DEC 31ST 2024) Net sales of EUR 3 970 thousand (compared to EUR 4 538 thousand in Q4 2023) EBITDA of EUR 425 thousand (848) and EBITDA margin of 10.7% (18.7%) EBIT of EUR 378 thousand (791) and EBIT margin of 9.5% (17.0%) Net Earnings After Tax of EUR 406 thousand (247) and net EAT margin of 10.2% (5.4 %) THE YEAR 2024 IN BRIEF (JAN 1ST - DEC 31ST 2024) Net sales amounted to EUR 15 757 thousand (compared to EUR 15 607 in 2024) EBITDA of EUR 1 753 thousand (1 980) and EBITDA margin of 11.1% (12.7%) EBIT of EUR 1 576 thousand (1 806) and EBIT margin of 10.0% (11.6%) Net Earnings After Tax of EUR 869 thousand (788) and EAT margin 5.5% (5.05%)
OCTOBER - DECEMBER KEY DEVELOPMENTS
-- The year ended with a stable performance in line with the "reduce to the
MAX" motto. More conservative accounting practices were applied
throughout the year 2024. The operational performance and profitability
increased during the last months of the year.
-- The German business had a slow ending of the year after very good
performance in the first 9 months of 2024. The Swiss company and
Pakistani company showed strong performance during October to December
of 2024.
-- Talkpool is returning to its telecom network services roots, building
upon its legacy of bringing communication technology to diverse regions
worldwide. The company has delayed publishing its new strategy as it
continues to thoroughly evaluate strategic opportunities.
-- Moving forward, Talkpool's primary focus is to grow and strengthen its
companies in Germany, Switzerland, and Pakistan. This growth trajectory
will be accelerated through the implementation of cutting-edge
technology tools powered by artificial intelligence, enabling more
efficient service delivery and expanded market reach.
This report contains insider information that Talkpool AG is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 08:30 o'clock Central European Time on Friday the 14(th) of March 2025.
This is Talkpool
Talkpool works behind the scenes to plan, build and improve large communication networks. Competence includes implementation of new technology including hardware, software, project management and human resources management. The company partners with Original Equipment Manufacturers to distribute, integrate and maintain technology that enhances telecommunication infrastructure.
Talkpool has global geographical reach and experience. The business has three main companies:
-- Germany: Fixed network planning of fibre and Copper technology performed
by 40 staff
-- Switzerland: One large Operation and Maintenance project of a complete
mobile and fixed network in the Caribbean performed by approx. 400 staff
-- Pakistan: Market leader with 45 projects to plan, implement, integrate,
optimize and refurbish telecom sites performed by approximately 1 000
employees
Talkpool also owns businesses in the USA, Saudi Arabia and Sweden. The company is traded in Stockholm (Nasdaq First North) and Frankfurt (Deutsche Börse) with ISIN CH0322161768. The business has Swedish roots, is majority-owned by Swedish shareholders and managed by a Swedish team. A streamlined and efficient business is now emerging after a turnaround period that has taken several years.
Management Comments
Artificial intelligence (AI) is rapidly surpassing human capabilities across numerous domains. While many telecommunications network operations are still in the early stages of this technological transformation, Talkpool is strategically positioning itself to harness the full potential of AI tools. By automating repetitive tasks currently performed by humans and optimizing use of infrastructure, Talkpool aims to drive efficiency, reduce costs, and deliver superior network performance for its clients.
Talkpool followed the motto "reduce to the MAX" in 2024 - keeping costs low while maximizing future opportunities. Additional resources have been allocated to sales and business development without increasing the cost base.
Germany has during 2024 developed into Talkpool's most important market. The German work volumes in the fourth quarter were however lower than previously, and accounting practices were further tightened.
The Swiss company continued to overperform based on operational profits from its Operation and Maintenance project in the Caribbean and low headquarter costs.
The business in Pakistan is going through big changes. An effort to export remote services and technology from Pakistan has been initiated. Pakistan has been in a crisis, but the business ended 2024 with a positive trend.
The TALK share price (ISIN CH0322161768) dived from just below SEK 8.0 (EUR0.62) per share in early October 2024 to SEK 6.3 (EUR0.45) at the end of the year, only to return to just below SEK 8.0 (EUR0.62) at the time of writing this text.
Beginning of the year 2025
The business has started the new year as stable as it finished 2024. After 8 years of absence, Talkpool visited the world's largest wireless show #MWC25 in Barcelona and signed two separate contracts for Artificial Intelligence tools. New sales managers have been hired while efforts to minimize costs continue.
Business development activities have increased in Talkpool's Miami office. Promising negotiations with optical fiber network operators are undergoing and a network services trial is evaluated in the USA.
Talkpool is considering re-entering the Swedish market to meet new demands for secure mobile communication technology.
Looking ahead, Talkpool is planning to accelerate growth while continuing to focus on cashflow and profit margins.
Despite economic uncertainties, demand for Talkpool's services remains resilient, with clients increasingly turning to innovation as a response to challenging market conditions. In this turbulent global landscape, Talkpool has established itself as a trusted anchor, providing stability and forward-thinking solutions when clients need them most.
Financial development
KEY FIGURES
Q4 2024 Q4 2023 FY 2024 FY 2023 Sales, EUR thousand 3'970 4'538 15'757 15'607 Sales growth in % -12.5 % -33.3 % 1.0 % -38.8 % Gross profit, EUR thousand 1'082 964 4'246 3'822 Gross margin 27.2 % 21.2 % 26.9 % 24.5 % EBITDA, EUR thousand 425 848 1'753 1'980 EBITDA margin 10.7 % 18.7 % 11.1 % 12.7 % EBIT, EUR thousand 378 791 1'576 1'806 EBIT margin 9.5 % 17 % 10.0 % 11.6 %
The annual revenue for 2024 remained in line with 2023 levels, with a small increase to EUR 15.8 million in 2024 from EUR 15.6 million in the previous year.
The gross margin throughout 2024 remained stable at an average just below 27%. The Gross Margin in 2024 was approximately 2.5% higher than in the previous year.
Profit Margins per Quarter 24Q4 24Q3 24Q2 24Q1 Revenue [EUR million] 4.0 4.1 3.7 4.0 Gross Margin 27.2 % 26.7 % 27.3 % 26.6 % EBITDA 10.7 % 12.9 % 10.1 % 10.9 % EBIT 9.5 % 11.9 % 8.9 % 9.8 % EAT 10.2 % 3.8 % 4.1 % 4.2 %
Financial position and cash flow
KEY FIGURES
Q4 2024 Q4 2023 FY 2024 FY 2023 Equity ratio 17.4 % 2.5 % 17.4 % 1.4 % Return on equity 45.3 % 1070 % 97.6 % -1'450% Net cash/debt, EUR thousand -786 -2'071 -786 -2'071 Operating cash flow, EUR thousand 490 -757 1'433 -32
[EUR]
The consolidated balance sheet continued to strengthen, with an increasingly positive net debt trend. The Total interest-bearing liabilities declined due to ongoing loan amortization. The long-term loans, marked with green color as "non-current interest-bearing liabilities" in the graph above, have almost been reduced in half from 1'339 thousand to EUR 690 thousand.
The Net Debt of EUR 786 thousand is calculated by deducting Total Debt from the Cash and Cash Equivalents. For Talkpool at the end of 2024, the Net Cash amounted to 1.408mEUR cash - 1.504mEUR current liabilities - 690kEUR long-term liabilities = -786 thousand. The net debt will be reduced by approximately EUR 450 thousand after validating the conversion of shares decided in 2024 and executed in 2025. If the current trend continues, Talkpool will reach zero net debt in the beginning of the year 2025.
EQUITY
The Total equity increased throughout 2024, reaching EUR 1 044 thousand by year-end. Talkpool is since 2016 using an unusual accounting practice, whereby goodwill is discounted from equity. This accounting method has led to drastically reduced equity levels. Equity cannot be negative when applying standard accounting practices, but Talkpool has during many years had a negative equity amounting to several million Euros. Equity incl. minority interest has recovered from negative EUR 1 156 136 at the end of 2022 to a positive equity of EUR 89 871 at the end of 2023 to (positive) EUR 1 044 487 at the end of 2024.
Talkpool has improved its Equity Ratio (=Total Shareholders' Equity / Total Assets) to 17.4% in 2024. This is a low Equity Ratio for an established service company. The main reason for the low Equity Ratio is Talkpool's unusual way of discounting goodwill from equity.
Return on Equity (ROE) measures how efficiently a company generates profits from its shareholders' investments. ROE is calculated as Net Income / Average Equity for the year. A Return of Equity of over 30% is considered as extremely high. This is however distorted in a similar way as described above.
CASH-FLOW AND INVESTMENTS
OCT 1(ST) - DEC 31(ST) 2024
Operating cash flow amounted to EUR 490 thousand, a significant improvement compared to the negative EUR 757 thousand recorded in Q4 2023. Strong cashflow will be a key priority in Talkpool's new strategy.
Working capital reached EUR 231 thousand in Q4 2024, compared to negative EUR 687 thousand in the same period last year.
JAN 1(ST) - DEC 31(ST) 2024
Operating cash flow totaled EUR 1 433 thousand for the full year 2024. This is a big improvement compared to previous years. No major extraordinary events occurred and the OCF trend was positive. Despite amortizing loans, Talkpool had more cash at the end of the year than it had at the beginning of 2024.
Talkpool has now reached a healthy level of cashflow generation and intends to intensely continue focusing on cashflow generation. Operating cash flow (OCF) for service companies varies by industry segment, size, and business model, but there are some general benchmarks. For healthy service companies, operating cash flow typically ranges from 8% to 20% of revenue, and this can be compared to Talkpool's OCF of 9.1% for 2024 and 12.3% for the last quarter.
SIGNIFICANT EVENTS AFTER THE PERIOD
Bonds were converted in September 2024. The resulting capital increase will be completed in the first half year 2025. In this report, we've assumed that the validation day for the conversion will be in 2025.
AUDITOR'S REVIEW
The company's auditors have not audited this report.
CONSOLIDATED INCOME STATEMENT
Oct -Dec Jan-Dec EUR 2024 2023 2024 2023 Net revenue from goods and services 3'970'165 4'538'192 15'756'871 15'606'987 Cost of sales -2'888'552 -3'574'149 -11'510'760 -11'784'690 Gross profit 1'081'613 964'043 4'246'111 3'822'297 Selling expenses -85'976 -85'655 -307'979 -352'004 Administrative expenses -648'808 -791'434 -2'442'611 -2'436'185 Other operating income & expenses 31'353 704'533 80'910 771'947 Operating result 378'181 791'488 1'576'431 1'806'056 Financial net 65'121 -421'083 -118'870 -486'773 Profit before income taxes 443'303 370'404 1'457'561 1'319'282 Income taxes -37'564 -123'656 -588'671 -531'090 Net profit 405'739 246'749 868'890 788'193 Net income attributable to: Stockholders of the parent company 399'339 231'549 859'727 790'705 Minority interests 6'400 15'200 9'162 -2'512 Other information Average number of shares 6'778'097 6'778'097 6'778'097 6'778'097 Earnings per share (no dilutive effects) 0.06 0.03 0.13 0.12 Number of shares, end of period 6'778'097 6'778'097 6'778'097 6'778'097 Earnings per share (no dilutive effects) 0.06 0.03 0.13 0.12
CONSOLIDATED BALANCE SHEET
EUR December 31 December 31 2024 2023 ASSETS Current assets Cash 1'407'778 1'035'045 Trade receivables 826'186 1'550'295 Other current receivables 1'240'347 1'187'972 Inventories and unvoiced services 1'200'340 1'168'190 Prepaid expenses and accrued income 123'533 70'719 Total current assets 4'798'184 5'012'221 Non-current assets Other financial assets 2'066 6'759 Investments in associates and financial assets 486'268 501'589 Intangible assets 88'437 116'453 Property, plant and equipment 611'927 605'917 Total non-current assets 1'188'698 1'230'718 TOTAL ASSETS 5'986'882 6'242'939 LIABILITIES AND EQUITY Current liabilities Trade payables 922'007 1'180'967 Current interest-bearing liabilities 1'503'735 1'766'856 Other current liabilities 397'901 415'781 Accrued expenses and deferred income 1'392'177 1'359'253 Total current liabilities 4'215'820 4'722'587 Non-current liabilities Non-current interest-bearing liabilities 690'434 1'338'765 Provision 36'141 91'716 Total non-current liabilities 726'575 1'430'480 Total liabilities 4'942'395 6'153'067 Equity Stockholders' equity 881'002 -54'540 Minority interest in equity of subsidiaries 163'485 144'411 Total equity 1'044'487 89'871 TOTAL LIABILITIES AND EQUITY 5'986'882 6'242'939
As per 31 December 2016, goodwill acquired is no longer capitalized and depreciated,
but offset against equity.
For further information:
Magnus Sparrholm, Interim CEO
Telephone: +41 79 758 15 48
magnus.sparrholm@talkpool.com [mailto:magnus.sparrholm@talkpool.com]
Erika Loretz, Accounting & Finance Manager
Telephone: +41 79 333 59 71
erika.loretz@talkpool.com [mailto:erika.loretz@talkpool.com]
Talkpool
Gäuggelistrasse 7 Telephone: +41 81 250 20 20
CH-7000 Chur Mail: info@talkpool.com [mailto:info@talkpool.com]
Switzerland Web: www.talkpool.com [https://c212.net/c/link/?t=0&l=en&o=4383362-1&h=3870997770&u=https%3A%2F%2Fwww.talkpool.com%2F&a=www.talkpool.com]
FINANCIAL CALENDAR
Annual Report 2024 25 April 2025 Interim Report January - March 2025 15 May 2025 Annual Shareholder's Meeting 10 June 2025 Interim Report January - June 2025 8 Aug 2025 Interim Report January - September 2025 14 Nov 2025 Year End Report January - December 2025 27 Mar 2026
CERTIFIED ADVISOR
G&W Fondkommission
This disclosure contains information that TalkPool AG is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 14-03-2025 08:30 CET.
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https://news.cision.com/talkpool-ag/r/year-end-report-q4-2024,c4118875 [https://c212.net/c/link/?t=0&l=en&o=4383362-1&h=1548904809&u=https%3A%2F%2Fnews.cision.com%2Ftalkpool-ag%2Fr%2Fyear-end-report-q4-2024%2Cc4118875&a=https%3A%2F%2Fnews.cision.com%2Ftalkpool-ag%2Fr%2Fyear-end-report-q4-2024%2Cc4118875]
The following files are available for download:
https://mb.cision.com/Main/14365/4118875/3320957.pdf TalkPool Interim Report Q4 2024 FINAL
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