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.


     
              
                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 (€0.62) per share in early October 2024 to SEK 6.3 (€0.45) at the end of the year, only to return to just below SEK 8.0 (€0.62) 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 1.408m€ cash - 1.504m€ current liabilities - 690k€ 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

Erika Loretz, Accounting & Finance Manager
Telephone: +41 79 333 59 71
erika.loretz@talkpool.com

Talkpool

Gäuggelistrasse 7 Telephone: +41 81 250 20 20
CH-7000 Chur Mail: info@talkpool.com
Switzerland Web: 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.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/talkpool-ag/r/year-end-report-q4-2024,c4118875

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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