|Net sales, MEUR||14,1||11,0||24,0||20,5||47,0|
|Adjusted operating result, MEUR 1||5,8||3,6||8,1||4,6||13,0|
|Operating result, MEUR||6,3||3,6||7,4||6,0||14,4|
|Result before taxes, MEUR||5,4||2,4||6,4||4,8||11,8|
|Adjusted result for the period, MEUR 2||3,8||1,4||5,5||1,3||6,3|
|Result for the period, MEUR||4,2||1,4||4,8||2,8||7,7|
|Earnings per share, basic, EUR||0,02||0,01||0,02||0,01||0,03|
|Order book, MEUR||39,4||33,2||25,5|
|Cash flow after investments, MEUR||2,3||-0,8||3,5||-0,7||0,1|
|Change in cash and cash equivalents, MEUR||1,4||-0,6||2,4||-0,8||-0,8|
|Cash and cash equivalents, MEUR||5,8||3,3||3,4|
|Equity ratio %||25,5||-3,0||9,9|
|Net gearing %||-||-||292,2|
|Personnel at end of period||622||515||600|
|1 Adjusted operating result = operating result before one-time items.|
|2 Adjusted result for the period = result before one-time items.|
CEO Padma Ravichander: Outstanding performance in the New Normal!
Outstanding performance in the first half of 2020 demonstrated our robust capability and determination to help our customers through this challenging period of COVID-19 crisis. I’m extremely proud that the teams across all regions and functions at Tecnotree continued their strong collaboration and enthusiasm, even when forced to adapt to new ways of working in a short period of time while the world around us is rapidly changing. Continuous increase in customer confidence, competitive Tecnotree Digital BSS suite 5 product offering and efficiency in deliveries lead to significant improvements in results in the first half of 2020.
The revenue in the second quarter was EUR 14.1 million being 28% higher than the same quarter last year. The revenue in the first half was EUR 24.0 million being 17% higher than last year. The growth in revenue came mainly from Middle-East and Africa region but also Asia Pacific witnessed relatively strong increase in revenue.
Profitability in the second quarter was record high with operating margin (EBIT) of 45% leading to EUR 6.0 million operating result. The adjusted operating margin in the first half was EUR 8.1 million with 34% margin compared to EUR 4.6 million with 23% margin last year. Net profit in the first half was EUR 4.8 million. Earnings per share (EPS) in the first half was 0.02 euros compared to 0.01 euros and equity per share was 0.04 euros compared 0.00 euros last year.
New orders received during the first half of the year were up by 16% and EUR 5.3 million more compared to last year. In the end of the second half Tecnotree was awarded a digital transformation project by a new Tier-1 operator customer in the Middle-East and Africa region worth USD 11 million. Order backlog in end of the reporting period was EUR 39.4 million and up by 30% compared to last year.
Financial situation of the company is on solid ground. Efficient collection of receivables, actions taken on operating cost side and effective tax planning lead to positive EUR 3.5 million operating cash flow after investments in the first half. Cash and cash equivalents in the end of period was EUR 5.8 million.
Tecnotree share witnessed increased market interest in the first half, which was shown as increase in both share turnover and market valuation. In the end of the period Tecnotree’s market capitalization was EUR 64.8 million, being EUR 22.7 million higher compared to year-end 2019.
Other business updates
Tecnotree continues robust growth in its business across global markets by increasing the presence of our brand and taking advantage of the onset of 5G implementations and the digital transformation requirements of our customers. We hope to synergize new partnerships with other internet of things (IOT) providers, to increase our competitive edge, our reach to new markets and to strengthen our customer base globally, so that our customers may benefit from the full range of the Tecnotree Digital BSS Suite 5 products and our high quality digital Deployment, Operational and Managed Services capabilities
Board of Directors