Tet Group’s Turnover Increases by 12%, with Data Center Services and Security Solutions Leading the Way: Q1 2023 Update

In the first three months of 2023, Tet Group’s turnover reached 72.2 million euros, correspondingly increasing by 12% compared to the same period last year, according to the consolidated unaudited data. The largest increase in turnover can be observed in data center services (51%) and equipment sales to business partners (44%).

Security issues have not lost their relevance, and in the first three months of the year, Tet’s security solutions business has seen an increase in turnover both in international markets and attracted several large clients in Latvia, increasing turnover by 36%. On the other hand, the turnover in data center services has increased by 51%, thanks to the successful long-term cooperation with existing and also new customers in Ukraine. Tet group’s export performance increased by 2%, reaching 13.27 million euros.

“Not only in Latvia, but also in the international markets, most of the costs necessary to ensure business operations continue to increase, so the beginning of the year was very difficult for entrepreneurs, including Tet, however, thanks to the quality service offered by our professional and qualified employees, we have successfully managed to increase total company turnover. The achieved turnover of 72.2 million euros is a good proof that we are able to operate and develop successfully even in crisis conditions, identifying the most important sectors in which we can be market leaders both in Latvia and abroad, however, in the coming months the situation in the overall national economy will play a decisive role, as well as how quickly and efficiently all involved parties will be able to provide funding for the digital transformation of all sectors,” emphasizes Uldis Tatarčuks, chairman of the Tet board.

Tet Group’s advertising business also continues to grow steadily, recovering from the Covid-19 crisis. The banning of Russian channels forced advertisers to review their business and look for new advertising opportunities. The strengthened position in the TV industry and increasing channel ratings, as well as the closure of Russian channels, allowed the advertising business turnover to show a stable increase in the first quarter of the year, which can also be explained by the high demand of viewers for local television content products, in which Tet implements ambitious projects (multi-series film Uninvited Guests, the feature film Mother’s Milk, the first series in Latgalian Fati, which received the Latgalian Culture of the Year Award Bonųuks, etc.).

It can be seen that companies save money and spend less on employee training when tougher times come, as the training business of the Tet Group has slightly decreased (by 9%) compared to the first quarter of last year. Similarly, the 18% decrease in the retail sale of appliances shows that people themselves are now carefully evaluating their spending, primarily thinking about basic necessities and only then – additional equipment.