First half of 2023 in the TIM Group: pressure of Q1 2022, Q2 2023 close to the last year’s Q2

The TIM Capital Group ended the first six months of 2023 with PLN 732.8 million of sales revenue (-5.1% year-on-year) and net profit at the level of PLN 32.9 million (-45.5% year-on-year). In this period 3LP, a logistic company, recorded an increase in unit sales revenue (PLN 80.1 million, +4.2% year-on-year).

The revenue from the TIM SA’s sales in the first half of 2023 amounted to 702.8 million and was lower by 4.8% from the revenue generated in the same period in 2022.
– At the beginning of 2023, we knew that we would face the challenge of comparing generated results with non-standard Q1 2022, which resulted in more than PLN 393 million of sales revenue and remains the best quarter in the TIM’s whole history. It was a period of the next round of subsidies for photovoltaic systems, change in the manner of calculating prosumers into a less favourable one and the highest market uncertainty and concerns about the supply chain in connection with the Russian invasion of Ukraine – reminds Krzysztof Folta, President of the Management Board of TIM SA. – The first half of 2023 was marked by a high inflation affecting the financial situation of households and entrepreneurs, poor economic situation on the construction market, slowdown and negative perspectives reflected in the dropping PMI index in the industry, as well as further geopolitical uncertainty. It caused that the equalisation or improvement of the results from the previous year turned out to be impossible. However Q2 2023 in terms of revenue was very similar to the same period of 2022 (PLN 339.4 million, -1.6% year-on-year) – points out Krzysztof Folta.

Stability and development

Lower sales revenue and at the same time deterioration of profitability of core business activities translated to lower EDITDA and net result – at the consolidated level the declines in these rates were 42.3% and 45.5% respectively, to PLN 53.3 and 32.9 million.
– Despite the negative dynamics, they are at the safe level, and the TIM Group’s financial condition is very good. The liquidity and debt rates remain at the levels close to the situation from the end of 2022 – notices Piotr Tokarczuk, Member of the Management Board and Financial Director of TIM SA. – In the context of the Group’s results, it is worth mentioning the increase in unit revenue from sales generated by 3LP, which develops and opens new branches. The latest branch is in Słubice, just five kilometres form the Polish and German border crossing – he adds.

Greater loyalty

Despite worse sales results caused by current market conditions, the number of TIM’s customers is increasing, which constitutes the necessary condition of the Company’s further development and will result in another dynamic acceleration at the time of the economic situation improvement. Increases are also visible among key customers (whose sales exceeded PLN 1,500 per month over the last 12 months) and loyal customers (purchases in at least 6 months over the last 12 months).
– At the end of 2023, the increase in the number of these customers was 14.7% and 5.2% respectively, to the level of 23,445 and 7,210. Importantly, the increase in loyalty is noticeable not only in hard sales data, but also in the statistics of Internet traffic of, our electrical engineering centre – underlines Piotr Nosal, Member of the Management Board and Commercial Director of TIM SA. –The number of visits per one user increased by seventeen percent (from 3.87 to 4.5), while the online channel gained 2.8% more transactions despite the decrease in the number of users – he adds.