Tecnotree Corporation Full Year Report 1[st] Jan – 31[st] Dec 2021 (unaudited)
Tecnotree Corporation Stock Exchange Release 25 February 2022 at 9:00 EET
RECORD RESULTS AND STRONG ORDER BOOK
Fourth quarter (October – December 2021)
- Net sales were EUR 18.1 (14.2) million.
- The operating result was EUR 5.9 (4.3) million.
- The result was EUR 5.2 (4.3) million.
- The order book at the end of the period stood at EUR 53.5 (32.1) million.
- Cash flow after investments was EUR 3.8 (2.3) million.
- Earnings per share were EUR 0.02 (0.02).
Full year (January - December 2021)
- Net sales were EUR 64.2 (52.8) million.
- The adjusted operating result was EUR 23.7 (19.3) and the operating result was EUR 23.7 (18.6) million.
- The adjusted result was EUR 18.3 (14.2) million and the result was EUR 18.3 (13.6) million.
- Cash flow after investments was EUR 4.0 (7.0) million and the company’s cash and cash equivalents were EUR 17.6 (8.0) million.
- Earnings per share were EUR 0.06 (0.05).
| Key figures, MEUR | 10-12/ 2021 |
10-12/ 2020 |
1-12/ 2021 |
1-12/ 2020 |
| Net sales, MEUR | 18.1 | 14.2 | 64.2 | 52.8 |
| Adjusted operating result, MEUR 1 | 5.9 | 4.3 | 23.7 | 19.3 |
| Operating result, MEUR | 5.9 | 4.3 | 23.7 | 18.6 |
| Result before taxes, MEUR | 5.9 | 4.2 | 21.4 | 15.9 |
| Adjusted result for the period, MEUR 2 | 5.2 | 4.3 | 18.3 | 14.2 |
| Result for the period, MEUR | 5.2 | 4.3 | 18.3 | 13.6 |
| Earnings per share, basic, EUR | 0.02 | 0.02 | 0.06 | 0.05 |
| Order book, MEUR | 53.5 | 32.1 | ||
| Cash flow after investments, MEUR | 3.8 | 2.3 | 4.0 | 7.0 |
| Change in cash and cash equivalents, MEUR | 3.6 | 1.2 | 9.5 | 4.7 |
| Cash and cash equivalents, MEUR | 17.6 | 8.0 | ||
| Equity ratio % | 85.2 | 39.3 | ||
| Net gearing % | -26.0 | 27.1 | ||
| Personnel at end of period | 750 | 659 | ||
| 1 Adjusted operating result = operating result before one-time items. | ||||
| 2 Adjusted result for the period = result for the period before one-time items. | ||||
CEO Padma Ravichander: 2021 was a Robust, Exciting and Transformational Year for Tecnotree
2021 was a historical year for Tecnotree as it registered high growth in revenue (higher by 21.6% compared to last year) and net income (higher by 34.6% compared to last year) and strengthened its balance sheet in addition to investing across key products and offerings.
Tecnotree continued to reinforce its position as one of the leading Digital BSS service providers by increasing its order intake to EUR 85.6 million, highest in the last nine years (43.9% higher than the last year). Tecnotree has a strong competitive advantage to serve the fast-evolving global telecom industry as its 5G ready and cloud native Digital BSS solutions have been tested by multiple telecom operators for large digital transformations especially in the growth markets which is further accelerated by their 5G deployment.
Further, the fund raising through equity of ~EUR 22 million, retiring of debt and coming out of restructuring programme in 2021 built strong confidence among Tecnotree’s stakeholders which led to new customer and partnership opportunities; it is expected to remain strong in 2022 as well. Tecnotree has also continued to be an attractive company for global talent and added 91 employees during 2021 despite the hiring challenges related to the pandemic.
Tecnotree will continue to have a balanced approach towards strategic growth investments as well as maintaining a strong liquidity position with focus on receivables and cash management. Also, we believe that the investments committed in 2020 and 2021 have started translating into winning new logos across markets which is visible in our order intake and order book growth.
Tecnotree continues to monitor the Covid-19 pandemic situation and takes necessary actions and mitigation steps to reduce any impact it may cause.
Revenue
Revenue in the fourth quarter was EUR 18.1 million and EUR 64.2 million for the full year showing 27.2% and 21.6% growth compared to last year respectively. The full year revenue was highest in the last six years and the strongest growth came from MEA & APAC region demonstrating 23.6% growth compared to last year.
Profitability
Tecnotree’s operating result in the fourth quarter was EUR 5.9 million compared to EUR 4.3 million last year witnessing EUR 1.6 million or 37.0% growth. Full year operating result was EUR 23.7 million compared to EUR 18.6 million last year and was equal to 36.9% of revenue, the record operating result and operating result margin.
Net result for the full year was EUR 18.3 million compared to EUR 13.6 million and was equal to 28.50% of revenue, a record net result and net result margin. The earning per share (EPS) was 0.06 euros compared to 0.05 euros last year.
Order intake
New orders recorded for the full year totalled to EUR 85.6 million showing 43.9% increase compared to last year and being the highest in the last nine years. Year-end order book was EUR 53.5 million being 66.5% higher compared to EUR 32.1 million last year. During the year, Tecnotree enhanced its customer portfolio by adding large telecom operators such as Zain Group and Ooredoo Group for the digital transformations of their operating companies.
Tecnotree has also signed a first of its kind, subscription based recurring revenue agreement with MTN Nigeria, one of the largest telecom operators in Africa, for a B2B2X ecosystem play on Tecnotree Moments platform with pre-integrated partner offerings in esports, gaming, sports, media entertainment, education and healthcare. Tecnotree has also signed an exclusive technology partnership agreement with Dubai Sports Council, the official sports governance body of Government of Dubai, under the Digital Dubai initiative to provide Tecnotree Moments platform which will streamline event ticketing, e-sports tournament leagues, high-quality OTT video streaming of live games with AR & VR capabilities, coaching, training and gym subscriptions with the aim of socialising Sports, Health and Wellness in Dubai.
Financial situation
In 2021, Tecnotree purchased its outstanding debt under the debt restructuring programme and the company became debt free. At the year end, Tecnotree had a strong liquidity cash reserve and no interest being liabilities. Cash and cash equivalents at the end of year were EUR 17.6 million compared to EUR 8.0 million last year.
Other business updates
Tecnotree continues to be on the accelerated growth trajectory in its business across global markets by increasing the presence of its brand and taking advantage of the onset of digital transformation requirements of communication and digital service providers. We strongly believe that the readiness of our digital stack brings a unique opportunity to increase the operational efficiency and optimize cost of our customers especially those in markets suffering inflationary pressure.
With Tecnotree Moments platform and its Fintech offerings, we hope to synergize new partnerships with communication and digital service providers, eco-system players and internet of things (IOT) providers, to introduce new revenue models and API frameworks to take advantage of the 5G roll-outs world-wide and forge new frontiers to empower digitally connected communities in the sectors of Education, Health, E-commerce, Gaming, Sports and Entertainment.
Further information
Padma Ravichander, CEO, tel +97 156 414 1420
Priyesh Ranjan, CFO, tel +971 50 955 1188
About Tecnotree
Tecnotree is the only full stack digital business management solution provider for digital service providers, with over 40 years of deep domain knowledge, proven delivery and transformation capability across the globe. Our open source technology based agile products and solutions comprise the full range (order-to-cash) of business process and subscription management for telecom and other digital service providers. Tecnotree products and platforms service over 800 million subscribers worldwide. Tecnotree is listed on Nasdaq Helsinki (TEM1V). For more information, please visit www.tecnotree.com.