Tellus Group CEO Bijan Fahimi Comments on Preliminary Figures for Q1 2023

Published: April 24, 2023

Miscellaneous

Tellusgruppen AB (publ) (the “Company”) recently presented its preliminary results for the first quarter of the year, which included several pieces of positive news. Revenue is expected to exceed 100 million for the quarter; growth remains strong through both acquisitions and organic growth; and the established strategy is confirmed as the business once again posts a profit.

“For us, the figures we presented are both significant and important in several ways. By generating 100 million in revenue in a single quarter, we’re reaching a milestone and closing in on the larger companies in the education industry. Reaching annual revenue of 500 million kronor isn’t that far off,” says Bijan Fahimi, CEO of Tellusgruppen.

Tellusgruppen With organic growth of 13 percent and acquisition-driven growth of over 16 percent, the Company’s revenue growth is expected to exceed 30 percent on an annual basis. As a publicly traded company, this revenue growth is also important for attracting institutional investors.

– We are growing in all the segments in which we operate, while also increasing our profitability. Our strategy of acquiring and developing businesses from a long-term perspective is working, and the preschools and schools we establish ourselves have reached break-even faster than expected. As a result, our organic growth has a smaller operating loss during the first few years.

The most recent quarter in which Tellusgruppen reported profitability was the first half of 2020. Since then, the Company has invested in growth through new preschools and schools, and most recently through the acquisition of complementary businesses in the field of native-language instruction, represented by Omniglot and Språkservice 24.

– This year, we will open three new preschools; during the 2019–2020 period, we opened two per year, which was quite a feat given our size. The fact that new openings are occurring at a slightly slower pace relative to the company’s size, and that we have been successful in attracting parents, children, and students to new locations, means that growth is also costing less than before.

– Most of the units we have launched in recent years still have room to grow further. This will generate additional organic growth and ensure that new projects are launched at a steady pace. We are actively pursuing new acquisitions of well-managed and profitable companies. In the areas of education and language services, we see significant potential, particularly with municipalities. Overall, this presents a very favorable outlook for continued growth and profitability.

– The key to success is ensuring that the high growth rate does not compromise the quality of our operations or our customer focus. “We place great emphasis on building a decentralized organization led and driven by competent and dedicated leaders and employees. With well-organized operations and skilled staff, we ensure the best possible results, both in our school operations and for our shareholders,” says Bijan Fahimi, CEO of Tellusgruppen.

For more information

Bijan Fahimi, CEO of Tellusgruppen AB
bijan.fahimi@tellusgruppen.se
+46 707 167 453