Team Telecom Armenia strategy: This is just the beginning!

ArmInfo. In such a short period of time, this year alone, the Team Telecom Armenia telecommunications  company, managed to make breakthrough steps in the domestic telecommunications market, first, it showcased itself as group of companies (Team Pay, Team Solutions, Team Systems and buy. am), Then followed the acquisition of shares of one of the leading telecommunication operators in Georgia (SkyTel) and, finally, an  company undertook its initial public offering (IPO).

The latest is unprecedented for Armenia, since for the first time a  telecommunications company entered the country's capital market,  having placed an issue of 40 million shares on the stock exchange,  with a total volume of 8 billion 240 million drams.

In a conversation with an ArmInfo correspondent on the sidelines of  the company's initial public offering- IPO, Team Telecom Armenia CEO  Hayk Yesayan noted that all these steps are part of the strategy, the  ultimate goal of which is to become the leading telecom operator in  Armenia, covering not only Yerevan and large cities, but also rural  areas.

Speaking about the main goals of the IPO, Yesayan noted that it is  not only about raising funds that will be used for capital  expenditures, the development of an optical fiber network, 4G, 5G  networks, but the desire to position itself and be a transparent,  open company.

, he said.  According to  him, the main reason for the decision to enter the capital market was  the high growth rate of the company. In this regard, Yesayan noted  that if in 2020 the EBITDA indicator was 6.5 billion drams, then in  2022 it increased to 12.5 billion drams.

In addition, he announced an increase in the coverage of the company.  , he noted.

At the same time, without disclosing details, the head of Team  Telecom Armenia said that the company's strategic steps will  continue, and soon it will become known about new initiatives to  achieve the set goals.  , he said.

Ameriabank CJSC acted as lead arranger for the Team Telecom Armenia  offering. Within the framework of the event Ameriabank General  Director Artak Hanesyan expressed hope that thanks to Team Telecom  Armenia the capital market of Armenia will become even more active.   He said that thanks to Ameriabank's MyInvest platform, everyone who  wishes will be able to purchase shares of the telecommunications  company and sell them online.

The head of the Bank, without revealing any further details, noted  that at the moment there is a high interest in the shares of Team  Telecom Armenia, and the list of applicants is quite diversified. In  this regard, Hanesyan expressed confidence that the transactions with  shares will be completed ahead of schedule.

It should be reminded that at the beginning of this year, the  telecommunications operator of Armenia, Telecom Armenia OJSC,  announced that is undertaking its initial public offering (IPO). The  company allocated 40 million stocks with a total volume of 8 billion  240 million drams. The nominal value of one share is 100 drams, and  the offering price is set at 206 drams.

According to the document, the issue of shares will take place on the  fifth business day from the date of registration of the prospectus  (05/31/2023), i.e. June 7, and it is planned to complete the  placement of shares on October 31.

For more detailed information on the procedure for acquiring and  selling shares on the MyInvest platform, follow the link:  https://www.youtube.com/watch?fbclid=IwAR1LXGfqIPqKCSboSUQqhtewzwHC7023E0vPLr  LSnesWublibLzSYmZ7lNs&v=SwyN5p7JLLY&feature=youtu.be .

It should be noted that by April 1, 2023, Telecom Armenia had 951,967  mobile subscribers, 320,223 fixed- line subscribers, and the number  of FTTH (Fiber to the Home) subscribers amounted to 8,653 (with an  increase of 29% in Q1 2023). The company intends to expand the  coverage of LTE Internet, as well as to introduce a 5G network in  Armenia, for which in March this year, received permission to use the  radio frequency band 700 MHz. Works are underway to expand the  high-speed fiber optic network, which does not require additional  licenses/permits. As of December 31, 2022, the company has 1911  employees (against 1899 a year earlier). In 2022, Telecom Armenia  increased its net profit 2.5-fold- up to 8.7 billion drams. Of the  revenue of 34.6 billion drams received in 2022, the dominant part was  formed from mobile and fixed-line services - 47% and 42%,  respectively.

Telecom Armenia (https://www.telecomarmenia.am/hy/) is a  telecommunications company that provides Internet, digital TV, mobile  and fixed telephone communications on the territory of the Republic  of Armenia. Since 2021, the company has begun construction of the NGN  (Next Generation Network), a unique network in the region, equipped  with 25G-PON technology and providing a speed of 25 Gb / s. The  company has made roaming in 100 countries more accessible, attracted  funding from the EBRD (European Bank for Reconstruction and  Development), IFC (International Finance Corporation) and Ameriabank  for a total of $45 million, some of which has already been directed  to the construction of the NGN (Next Generation) network. Network) in  the cities and villages of Armenia. In the near future, mobile  stations operating throughout Armenia will be connected to this  network, thanks to which the quality of mobile communication will  improve significantly.

In October 2020, Team LLC acquired 100% of the shares of VEON Armenia  CJSC (Beeline trademark), which in turn was the legal successor of  Armenia Telefon Company CJSC (ArmenTel), founded in 1995. In November  2020, it was renamed into Telecom Armenia CJSC, and in January 2023  the company announced a change in status from CJSC to OJSC.