I quarter of 2021 in the TIM Capital Group: record high financial data, dynamic growth in the number of customers

PLN 274.4 million of sales revenues, PLN 13.5 million of net profit (as much as +2398.7% y/y) and EBITDA at the level of PLN 24.6 million (+97.2% y/y) – this is the shortest summary the best results in the history of the TIM Capital Group after Q1. Growing turnover and the number of TIM customers are the effect of both sales and marketing activities, as also the guarantee of availability of products at TIM.pl particularly requested by customers.

Revenues from sales of the TIM Capital Group in the first quarter of 2021 were by 14.3% higher than in the corresponding period of the previous year. Whereas having ensured data comparability and having adjusted the sales of the TIM Capital Group in Q1 of 2020 by revenues of Rotopino.pl SA (the company left the TIM Group at the end of 2020) the annual increase in revenues amounted to as much as 24%. In turn, revenues from sales of TIM SA in the first quarter of 2021 reached the level of PLN 258.4 million, i.e. 21.2% higher than a year before. 

– The first quarter of 2021 brought TIM another record in monthly revenues from sales. In March our turnover exceeded PLN 100 million for the first time in history. Only a couple of years ago, before the change of the sales model, with high seasonality and dependence of the sales on the weather conditions and the situation in the construction industry, any kind of record breaking numbers in the first three months of the year would have been out of the question – notes Krzysztof Folta, the President of the Management Board of TIM SA. – Today we have a look at the calendar practically only to check the number of business days in a month. The extension, diversity and availability of our offer convince further customers to shopping on the TIM.pl platform. While in the entire 2020 there were 34 thousand of them, in the first quarter of 2021 there has been almost half of this number (19,800) – adds Krzysztof Folta. 

Recipe for Breaking Records

TIM’s sales success is the result of work in at least three areas: sales and marketing, SEO activities (focused on TIM.pl’s higher visibility in natural search results) and SEM (aimed at increasing the effectiveness of paid campaigns that position products available on the sales platform) and ensuring product availability. In the first quarter of 2021 the latter aspect was becoming more and more important in many product groups. In case of cables and wires we could identify significantly worse accessibility. Hampered access to the material used to produce cable sheath and insulations translated into temporary difficulties with accessibility, however, not on the TIM.pl platform. 

– In March we noted record high number of registrations of new B2B customers on TIM.pl platform in the number of over 1250. 

This result is the effect of intensive work on the positioning of the platform in both organic and paid search results. Our sales network employees are also constantly acquiring new customers. We reach them shortly after they register accounts on TIM.pl offering attractive terms of cooperation and a number of promotions, mainly profiled to the needs of individual customer segments – says Piotr Nosal, Member of the Management Board and Commercial Director of TIM SA. 

Consolidated EBIT as after the first half of the year of 2020

In the first quarter of 2021 increase of the TIM Group’s operating expenses was significantly lower than the increase of revenues from sales (9.7% vs 14.3% y/y). This allowed for an increase in the consolidated operating profit by more than 161% to PLN 19 million, therefore up to the level at which it was after the entire first half of 2020. As a consequence, consolidated EBITDA almost doubled y/y (from PLN 12.5 million to PLN 24.7 million) and the consolidated net profit amounted to PLN 13.5 million (+2398.7% y/y).

– At individual level in TIM SA aside from the dynamic growth in the scale of commercial activities, we have observed an improvement in sales margins, which consequently allowed for the generation of EBITDA in the amount of PLN 16.2 million (+110% y/y) – says Piotr Tokarczuk, Member of the Management Board and Financial Director of TIM SA.