Selectel delivers strong financial results
Posted: Mon Jan 20, 2025 10:59 am
At the same time, Selectel reduced its debt burden compared to the same period in 2023. In January-March 2024, the debt to EBITDA ratio (earnings before interest, taxes, depreciation and amortization) was 1.3 versus 1.4 at the end of 2023. As Vladimir Dergachev emphasized, this was achieved by increasing investments in equipment, software and services development, as well as the construction of new sites - their volume amounted to more than 1 billion rubles, which is 2.5 times higher than the volume in 2023. However, a representative of Selectel explained such a significant rate of cost increase by the low base of the first quarter of 2023.
At the same time, FG Finam albania whatsapp number database analyst Leonid Delitsyn and Freedom Finance Global analyst Vladimir Chernov predicted a noticeable increase in Selectel's debt burden for 2024. According to the Freedom Finance Global representative, the main source of debt will be interest on bonds that the company issued in late 2023 - early 2024.
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Selectel's revenue for 2023 increased by 26%, and net profit doubled to RUB 2.8 billion. However, analysts predict an increase in the company's debt burden in 2024.
"There were no expectations for a significant increase in the debt burden; our recent review mentioned an increase in bond debt due to bond redemptions. Obviously, with the current growth rates, an increase in net debt was expected, but proportional debt burden indicators, such as "net debt/EBITDA", were maintained. Based on the results of the second quarter, this indicator may grow given the placement of a new issue in the second quarter, but it will be at extremely comfortable levels," Nikita Borodanov clarifies. "The latest issue was placed quite successfully; the coupon guide was reduced from "no higher than 15.45%" to 15% per annum. Selectel securities are in good demand during primary placements and have high average daily turnover on the secondary market. According to the company's statements, it will use the funds received from the placement of the fourth issue to build a data center in Moscow."
As for the IPO, the company, as Vladimir Dergachev stated, has not yet made a final decision. According to him, this is one of the possible options for further development, but not the only one.
The number of Selectel employees has exceeded 900 people. As Vladimir Dergachev especially noted, most of them, about 500 people, are developers. According to him, personnel costs make up two-thirds of the total volume of all company expenses. The second most important item is payment for electricity, which accounts for about 9% of the total volume of expenses.
Selectel CEO Oleg Lyubimov noted that the first quarter results are in line with business growth expectations: "Following the ongoing digitalization trend among Russian companies, the demand for cloud technologies is growing. We see that cloud infrastructure has become one of the pillars of the development of the Russian IT sector. According to iKS-Consulting, the Russian cloud services market increased by 34% in 2023, to RUB 121 billion, and may more than double in the coming years. We expect the current trend to continue in 2024, and Selectel's consistently high profitability and sustainable financial profile will allow us to actively invest in future growth."
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At the same time, FG Finam albania whatsapp number database analyst Leonid Delitsyn and Freedom Finance Global analyst Vladimir Chernov predicted a noticeable increase in Selectel's debt burden for 2024. According to the Freedom Finance Global representative, the main source of debt will be interest on bonds that the company issued in late 2023 - early 2024.
Read also
Selectel's revenue for 2023 increased by 26%, and net profit doubled to RUB 2.8 billion. However, analysts predict an increase in the company's debt burden in 2024.
"There were no expectations for a significant increase in the debt burden; our recent review mentioned an increase in bond debt due to bond redemptions. Obviously, with the current growth rates, an increase in net debt was expected, but proportional debt burden indicators, such as "net debt/EBITDA", were maintained. Based on the results of the second quarter, this indicator may grow given the placement of a new issue in the second quarter, but it will be at extremely comfortable levels," Nikita Borodanov clarifies. "The latest issue was placed quite successfully; the coupon guide was reduced from "no higher than 15.45%" to 15% per annum. Selectel securities are in good demand during primary placements and have high average daily turnover on the secondary market. According to the company's statements, it will use the funds received from the placement of the fourth issue to build a data center in Moscow."
As for the IPO, the company, as Vladimir Dergachev stated, has not yet made a final decision. According to him, this is one of the possible options for further development, but not the only one.
The number of Selectel employees has exceeded 900 people. As Vladimir Dergachev especially noted, most of them, about 500 people, are developers. According to him, personnel costs make up two-thirds of the total volume of all company expenses. The second most important item is payment for electricity, which accounts for about 9% of the total volume of expenses.
Selectel CEO Oleg Lyubimov noted that the first quarter results are in line with business growth expectations: "Following the ongoing digitalization trend among Russian companies, the demand for cloud technologies is growing. We see that cloud infrastructure has become one of the pillars of the development of the Russian IT sector. According to iKS-Consulting, the Russian cloud services market increased by 34% in 2023, to RUB 121 billion, and may more than double in the coming years. We expect the current trend to continue in 2024, and Selectel's consistently high profitability and sustainable financial profile will allow us to actively invest in future growth."
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