Telemasters Holdings Limited (TLM) operates as a comprehensive provider in the telecommunications sector, offering a variety of voice, data, and cloud communications solutions. Its operational structure is organized into three primary divisions: voice, cloud PBX, and internet. The company encompasses several subsidiaries, each specializing in distinct areas of ICT managed solutions, Unified Communications (UC) platforms, network systems integration, and data center operations. These subsidiaries include Catalytic Connections (Pty) Limited, Contineo Virtual Communications (Pty) Limited, PerfectWorx Consulting (Pty) Limited, and Ultra Data Centre (Pty) Limited, the latter of which has established a data center outside Pretoria.
For the fiscal year ending 30th June 2023, Telemasters reported a slight decrease in revenue by 1.3%, alongside a notable improvement in headline earnings per share (HEPS) from a loss of 3.73c in the previous year to a gain of 0.81c. This turnaround to operating profit, with a year-on-year improvement of R2.8 million, highlights the company's successful recovery and operational efficiency. The data center business, in particular, has emerged as a growing and profitable segment, contributing to the overall improvement in earnings before interest, taxes, depreciation, and amortization (EBITDA), which rose to R8 million from R7 million in the prior year. Additionally, Telemasters has maintained its dividend policy, declaring dividends of 0.85 cents per share during the year.
Looking ahead to the six months ending 31st December 2023, Telemasters has projected at least a 100% increase in HEPS, signaling strong performance and optimism for its future operations. However, the company's stock is characterized by limited liquidity, with daily trading volumes of less than R1400, primarily due to the majority of shares being held by a single shareholder, the Maison D-Obsession Trust. This concentration of ownership poses a significant challenge for private investors, making it impractical to engage in trading Telemasters shares due to the difficulties in executing trades and the potential impact on share price from small transactions.
Despite these trading challenges, Telemasters' operational advancements and strategic focus on profitable segments like its data center business demonstrate its potential for growth and stability within the telecommunications sector. Investors and market watchers may find Telemasters an interesting case of a company achieving operational turnaround and growth in specific niches, although the practical aspects of investing in such a thinly traded stock require careful consideration.
For the fiscal year ending 30th June 2023, Telemasters reported a slight decrease in revenue by 1.3%, alongside a notable improvement in headline earnings per share (HEPS) from a loss of 3.73c in the previous year to a gain of 0.81c. This turnaround to operating profit, with a year-on-year improvement of R2.8 million, highlights the company's successful recovery and operational efficiency. The data center business, in particular, has emerged as a growing and profitable segment, contributing to the overall improvement in earnings before interest, taxes, depreciation, and amortization (EBITDA), which rose to R8 million from R7 million in the prior year. Additionally, Telemasters has maintained its dividend policy, declaring dividends of 0.85 cents per share during the year.
Looking ahead to the six months ending 31st December 2023, Telemasters has projected at least a 100% increase in HEPS, signaling strong performance and optimism for its future operations. However, the company's stock is characterized by limited liquidity, with daily trading volumes of less than R1400, primarily due to the majority of shares being held by a single shareholder, the Maison D-Obsession Trust. This concentration of ownership poses a significant challenge for private investors, making it impractical to engage in trading Telemasters shares due to the difficulties in executing trades and the potential impact on share price from small transactions.
Despite these trading challenges, Telemasters' operational advancements and strategic focus on profitable segments like its data center business demonstrate its potential for growth and stability within the telecommunications sector. Investors and market watchers may find Telemasters an interesting case of a company achieving operational turnaround and growth in specific niches, although the practical aspects of investing in such a thinly traded stock require careful consideration.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.