Tellusgruppen AB Releases Quarterly Report for Q3 2023

Published: November 23, 2023

IR - Regulatory

Tellusgruppen announces its Q3 results for 2023. During the period, revenue increased and the company opened a new preschool.

“The ongoing economic crisis—with high inflation, rising interest rates, a weakened currency, and declining demand—reminds us of something we already knew: The education sector may be exposed to political risks, but macroeconomic risks and cyclical sensitivity are fairly low,” says Bijan Fahimi, CEO of Tellusgruppen . Of course, we too have been affected by rising rents, electricity prices, and higher food prices, but the majority of these cost increases have been offset by rising reimbursement rates. My hope is that this compensation, with some lag, will improve even further as the threat of inflation subsides and gives the government greater leeway to invest in welfare.

Third quarter of 2023

Revenue increased by 23.5 percent to SEK 96.6 million (78.3). Organic growth amounted to 18.0 percent, while 5.5 percent was attributable to completed acquisitions.
Operating profit before depreciation and amortization (EBITDA) amounted to SEK 9.4 million (7.6), with a margin of 9.7 percent (9.7).
EBITDA, adjusted for changes in accrued vacation pay, amounted to SEK -3.3 million (-3.5).
Net income for the period amounted to SEK 0.6 million (3.2).
Net investments amounted to SEK 6.6 million (1.6).
Cash flow for the period amounted to SEK -1.4 million (SEK -1.3 million), and cash and cash equivalents totaled SEK 0.3 million (SEK 1.8 million) at the end of the period.

Significant events during the period

On August 1, Tellusgruppen took over as the new owner of Språkservice 24 AB. The purchase price for the shares, excluding cash on hand, is 7.7 MSEK. SEK 3.5 million was paid in cash and SEK 2.3 million through newly issued shares at a price of SEK 7.99 per share, representing 289,111 newly issued shares. The new share issuance results in a dilution of approximately 2.0 percent for the Tellus Group’s existing shareholders. Språkservice 24 offers native-language instruction and academic tutoring in more than 50 different languages. During the 2022/23 fiscal year, the company reported revenue of SEK 5.9 million and an operating profit of SEK 1.8 million.
In August, Tellusgruppen established the company Intelligent School Solutions in collaboration with Mathias Sundin. The company aims to offer AI-based applications to improve and streamline the work of preschools and schools, in both educational and administrative areas. Tellusgruppen holds a majority stake of 70 percent in the company, and Mathias Sundin owns 30 percent.
The Ursviks torg preschool, with 75 spots, opened its doors in September.
During the third quarter, the Tellusskolan Robinson Vårfru suffered extensive water damage to its school facilities, and operations were forced to move to temporary facilities. Additional costs associated with the incident have been covered by insurance payments so far.

You can read the full quarterly report here

Later today, a video featuring CEO Bijan Fahimi commenting on the report will be posted on the Tellus Group’s website: www.tellusgruppen.se.

For more information

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

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 23, 2023, at 8:30 a.m. CEST.

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.