Telelink Business Services Group’s (TBS) realized a 3.8% YoY decrease in Q2 2024 consolidated revenue to BGN 31.8m. Breakdown by segments revealed that revenue from IT infrastructure amounted to BGN 25.3m (+1.1% YoY), while hardware and software sales to end-users fell by 45.3% YoY to BGN 3.5m. Geographically-wise, the domestic market decreased by 5.2% YoY to BGN 17.6m, accounting for 56% (57% in Q1’23) in total revenue mix, followed by Rest of Europe sales decline to BGN 13.3m (-1.6% YoY). Operating expenses advanced to BGN 30.4m (+1.4% YoY) as a result of a 71.7% increase in compensations (BGN 9.3m), which is due to the consolidation of 7IT and costs related to German and USA subsidiaries. This led to a 54.6% decrease in cons EBITDA to BGN 1.4m (-54.6% YoY) and a net loss of BGN 0.3m. H1 2024 revenue amounted to BGN 73m, +21.5% YoY. Domestic sales (BGN 43.3m) expanded by 32.1% YoY, while Rest of Europe sales were up by 8.2% YoY (BGN 28.6m). The company achieved good results in the development of Digital transformation and Cybersecurity segments thanks to a new project in Bulgaria and Croatia. Total OPEX amounted to BGN 67.5m (+21% YoY) and brought cons EBITDA to BGN 5.5m (+27% YoY) and consolidated net profit to BGN 2m (+52.7% YoY). In addition, net margin improved by 50bps to 2.7%, and 6mo TTM EPS reached BGN 0.81. Note that the current guidance for FY2024 stipulates BGN 245.5m revenue, BGN 17.2m cons EBITDA and BGN 9.8m net profit. The readings appear quite ambitious unless TBS has accumulated sufficient backlog for the second half of the year, which was the case in 2023. On the balance sheet, non-cash working capital increased by 77.9% YoY to BGN 26.6m, which brought BGN 16.6m negative CFO for the quarter. In addition, IB debt amounted to BGN 33.1m due to the ongoing expansion initiatives.