The 1st quarter of 2022 at the TIM Group: record-breaking increase of revenues and number of new customers

The highest increase of consolidated sales revenues year-on-year in our history (by 49.4%, up to PLN 410 million) defined the first three months of 2022 at the TIM Group. This is an effect of dynamic acquisition of new customers, as well as increased demand resulting from market uncertainty caused by Russia’s invasion against Ukraine.

Sales revenues of TIM SA reached in the 1st quarter of 2022 the amount of PLN 393.2 million, i.e. an increase by 52.2% compared to the year before.

‘We have gotten used to the fact that our monthly revenues exceed PLN 100 million. In March 2022 we broke – significantly – another threshold: PLN 150 million (PLN 175.5 million, +64.8% yoy). The first weeks after 24 February were marked by customers’ uncertainty of product availability and of the risk of potential further price increases, which translated to increased demand and led to the anomaly observed in TIM’s sales revenues in March’ – says Krzysztof Folta, President of the Management Board of TIM SA.

Changed sales structure

While the increase of revenues is partially due to external factors, other records are exclusively a result of implementation of successful measures concerning customer acquisition and maintenance.

‘In the 1st quarter of 2022, the number of new customers who opened accounts at TIM.PL exceeded 7.5 thousand. This is an increase by 40% as compared to the same quarter of 2021, and by 14% as compared to the last quarter of 2021. The number of customers who made purchases in the first quarter of the current year exceeded 31 thousand as compared to 20 thousand the year before’ – adds Piotr Nosal, member of the Management Board and Trade Director at TIM SA.

The number of customers, especially small and medium enterprises, increases sales safety and stability. This is partially due to TIM’s multi-year effort to modify the sales structure by increasing the share of customers other than resellers.

‘This is also reflected in the slogan associated with TIM’s new strategy presented last week: “We deliver electronic engineering equipment to professionals”. The changed structure of sales in the first quarter of 2022 and increased share of clients of the “Installer” segment is also partially due to contractor companies’ approach to market instability and growing inflation’ – explains Piotr Nosal.

TIM’s dividend and 3LP investments – as planned

The net profit of TIM Group after the 1st quarter of 2022 was PLN 31.2 million as compared to PLN 13.5 million the year before (+131.9%). The consolidated EBITDA increased by 91.6% year on year, reaching almost PLN 47.3 million. In the 1st quarter of 2022 the TIM Group recorded positive financial flow of 28.9 million PLN as compared to 9 million PLN in the 1st quarter of 2021.

‘Our financial parameters are excellent, that’s why the Management Board of TIM presented the recommendation on dividend for 2021, proposing addition of further PLN 1.20 gross per share in summer 2022, on top of the PLN 1.20 gross per share paid in late 2021. This is consistent with the dividend policy we presented in spring 2021’ – says Piotr Tokarczuk, member of the Management Board and Financial Director at TIM SA.

Already after the end of the 1st quarter of 2022, in early May, the Board of the logistics company 3LP decided to suspend the offer for sale of the company’s shares without providing a new offering schedule.

‘We are waiting for the market situation to stabilise, so that we may come back to our plans concerning IPO. I also want to stress that suspension of the public offer does not affect 3LP’s ambitious investment plans for the upcoming years. We have guaranteed resources to implement them’ – declares Piotr Tokarczuk, who acts also as a member of the Supervisory Board of 3LP SA.