Silknet - 1Q24 update

Silknet’s revenue was up 8.9% y/y to GEL 136.5mn in 1Q24, driven entirely by organic growth. Mobile data and fixed broadband were key contributors. The growth in operating expenses was more modest, increasing 7.0% y/y to GEL 83.7mn, mainly due to one-time consulting expenses and higher salary costs. Excluding D&A costs and non-recurring items, operating expenses grew 6.5% y/y in 1Q24. Consequently, EBITDA grew 10.3% y/y to GEL 87.0mn, improving the EBITDA margin to 63.7% in 1Q24 from 62.9% in 1Q23. For the full-year 2024, we expect Silknet’s revenues to reach GEL 574.6mn, marking a 7.1% y/y increase, driven by the mobile data growth. 

Silknet has made a strategic alliance with Orange, joining the Orange Alliance Program in June 2024. The company expects this partnership to enhance Silknet’s capabilities in the B2C, B2B, and ICT sectors through access to Orange's platforms, expertise, and experience.