Tellusgruppen AB Releases Its Third-Quarter 2022 Report
Published: November 30, 2022
IR - Regulatory
The third quarter was an eventful period for Tellusgruppen. At the macro level, economic concerns intensified in the form of rising inflation and an economic slowdown. The election campaign ended with a victory for the opposition. At the corporate level, the acquisition of the parent company Omniglot was completed.
Third Quarter of 2022
- Revenue increased by 24.4 percent to SEK 78.3 million (62.9). Organic growth amounted to 10.6 percent, while 13.8 percent was attributable to acquisitions made in the previous year.
- The average number of enrolled children and students was 2,145 (1,694), an increase of 26.6 percent.
- Operating profit before depreciation and amortization (EBITDA) amounted to SEK 7.6 million (5.6), with a margin of 9.7 percent (9.0).
- Net income for the period amounted to SEK 3.2 million (3.5).
- Net investments amounted to SEK 1.6 million (33.1).
- Cash flow for the period amounted to SEK -1.3 million (SEK -5.4 million), and cash and cash equivalents totaled SEK 1.8 million (SEK 5.8 million) at the end of the period.
Significant events since the end of the reporting period
- On October 1, Tellusgruppen became the owner of Omniglot AB, a leading provider of native-language education. The preliminary purchase price for the shares, including cash and an adjustment for normalized working capital, amounts to 35.7 MSEK. Of the purchase price, SEK 25.9 million was paid in cash and SEK 9.8 million in the form of newly issued shares in Tellusgruppen. The cash portion is financed partly through an external loan and partly through a loan from the Tellus Group’s principal owner. The loans will be repaid over two years at an annual interest rate of 7.3 percent plus STIBOR 90. The share price for the newly issued shares was 6.75 SEK, and the number of new shares totaled 1,454,736.
- Lotta Edholm, a member of the Tellus Group’s board of directors, was appointed Minister of Education in Sweden’s new government and simultaneously stepped down from her position on the board. Lotta Edholm has chosen to forgo her board compensation for 2022.
CEO's comments
“The guiding principle behind our efforts to improve our results is that sustainable profitability is closely linked to high operational quality. The Tellus Group’s efficiency initiatives mean that we will do more with fewer resources.”
One example is our ongoing efforts to streamline our overhead costs. Over the past year, these costs as a percentage of total revenue have fallen by approximately 10 percent. However, what matters most to our profitability is that our operations are attractive to parents, children, students, and municipalities.
That is why, despite the difficult times, we do not hesitate to invest resources in initiatives that can improve our operations in both the short and long term. It is during difficult times that the wheat is separated from the chaff and market share can be gained. It is during an economic downturn that we lay the foundation for the company’s next phase of development.
Bijan Fahimi,
, CEO Tellusgruppen
The Board of Directors
Tellusgruppen AB (publ)
Link to the report
You can download the report here.
For more information
Bijan Fahimi, CEO of Tellusgruppen AB
+46 707 167 453
Certified Adviser
The company's Certified Adviser is Mangold Fondkommission AB, which can be reached by phone at
08-503 015 50 and by email at ca@mangold.se.
MAR
This information is information that Tellusgruppen AB (publ) is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication on November 30, 2022, at 8:30 a.m. CEST.