Telemedycyna makes strong stock market debut

2010-08-20

Telemedycyna Polska, a provider of e-health services, has made a successful debut on NewConnect, the junior Warsaw stock market. Rights-to-shares in the company surged by 49% on its debut on 18 August, indicating high investor confidence in its business model.
The listing was preceded by a private share placement, in which Telemedycyna raised PLN 1.44m (€0.36m). It aims to use the proceeds to broaden its service offering, enhance its sales capabilities and intensify collaboration with external partners, notably healthcare providers. Four new services are to be introduced under its flagship Kardiotele brand: holter and event monitors, rehabilitation, and special offerings for medical practices and health centres. As a result, the company expects a sharp rise in the number of customers, both in the retail market (which is its mainstay at the moment) and especially among healthcare providers. Their number is predicted to reach 2,945 by the end of this year, and to top 6,800 at the end of 2011. This is expected to drive dynamic sales growth going forward. In 2010, sales revenues are forecast to rise by 57% to PLN 2.2m (€0.6m), and in 2011 to more than double to PLN 5.3m (€1.3m). Telemedycyna is already profitable on both the net and operating level, and expects strong profit growth in the years ahead.
The main backer of the share placement was BBI Seed Fund, a Polish venture capital fund, which now owns 10% of Telemedycyna. Its CEO Marcin Majewski said that e-health services had “gigantic” growth potential in Poland, and that Telemedyna was well-placed to act as a consolidator of this nascent market.