Telnet Holding Announces Net Profit of 9,540 Mtnd for 2024

Telnet Holding announced yesterday a net profit of 9,540 Mtnd for the 2024 fiscal year, compared to a loss of 3,951 Mtnd the previous year. This is welcome news for shareholders who have experienced several ups and downs in recent years.

Revenue Up 22%

Revenue for the year stood at 68,909 Mtnd, up from 61,032 Mtnd in 2023, representing a 22.0% year-over-year increase. As expected, given the nature of Telnet's business, personnel expenses reached a record high of 45,332 Mtnd. However, what really contributed to the improvement in profitability was the normalization of provisions and depreciation, amounting to 3,078 Mtnd.

Recap of Fiscal Control Issues

Last year, a provision for risks and charges of 10,774 Mtnd was made following an in-depth tax audit covering the 2019 to 2021 fiscal years. Another partial notification dated December 29, 2023, was addressed to the company, covering a total amount of 2,258 Mtnd, including 0,981 Mtnd in principal and 1,276 Mtnd in penalties, covering the 2015 to 2019 period. Two months later, Telnet Inc. received a supplementary notification from the tax audit covering the 2020 and 2021 fiscal years, for an additional total amount of 4,560 Mtnd, comprising 2,503 Mtnd in principal and 2,057 Mtnd in penalties.

conciliation Agreement

As of June 19, 2024, the company signed a conciliation agreement with the tax administration, related to the in-depth tax audit covering the 2019 to 2021 fiscal years. It committed to paying the principal amount of 0,652 Mtnd over a 4-year period. As of December 31, 2024, three installments have been paid, totaling 0,122 Mtnd. Some contested points by the company are still pending.

Customs Control and Export Issues

Telnet Holding was also subject to a customs control audit regarding investments made abroad and products. The company estimated, in consultation with its advisors, the amount of penalties and fines to be 10,000 Mtnd. A reconciliation request was sent on April 19, 2024, to reduce the amount. The process resulted in the closure of the case after the payment of 7,399 Mtnd.

Market Awaits Next Shareholders' Meeting

The market is now waiting for the agenda of the next shareholders' meeting. Telnet has shown that it has a solid business model and is capable of performing well even in the absence of its founder.