Talkpool’s Pakistan Orders Signal Turnaround, But Risks Linger

The telecom services firm Talkpool AG has entered a pivotal phase of growth after securing €4.5 million in new orders from Pakistan in early 2025—marking a 40% increase in order volume compared to previous years. This surge, which already exceeds the company’s €15.8 million annual revenue for 2024, positions Pakistan as Talkpool’s fastest-growing market and underscores its strategic shift from financial turnaround to aggressive expansion.

The Pakistan Play: Cost Efficiency Meets Strategic Growth

The contracts, announced in May 2025, include a multi-year field maintenance agreement with a Tier-1 Original Equipment Manufacturer (OEM)—one of the world’s top three telecom equipment providers. This deal provides a recurring revenue stream, as Talkpool deploys its 1,200-strong workforce in Pakistan to manage logistics, site maintenance, and network optimization for mobile operators. Pakistan’s low labor costs (combined with a technically skilled population of over 250 million) make it an ideal outsourcing hub for telecom services.

Talkpool’s operations there also leverage Pakistan’s stabilization: inflation dropped to 9.4% in 2024 (down from 32% the prior year), while the Pakistan Stock Exchange (PSX) became the world’s top-performing market in 2024, per Bloomberg. These trends, alongside the PSX’s tech sector boom, align with Talkpool’s push to sell innovative, locally developed technology as a service to global clients.

Financial Turnaround: From Negative Equity to Zero Debt

The orders amplify Talkpool’s 2024 financial recovery, which saw a 2.5% improvement in gross margin to nearly 27%, positive operating cash flow (€1.4 million annually), and equity turning positive for the first time in years (€1.04 million by year-end). While non-standard accounting (e.g., goodwill discounts) distorts equity metrics, the company expects to eliminate net debt by early 2025, with €786,000 remaining at year-end.

Talkpool’s Vision 2030 plan, unveiled in April 2025, aims to reach €40 million in revenue—a 16.8% compound annual growth rate (CAGR) from 2024 levels. The Pakistan orders alone could contribute significantly, especially if recurring contracts scale as planned.

Strategic Leverage: AI and Export Growth

Beyond Pakistan, Talkpool is integrating AI tools to automate repetitive tasks, a move that could lower costs and improve margins further. At MWC25 in Barcelona, the company secured two AI contracts, signaling a push into data-driven telecom services. Meanwhile, its Swiss-German-Pakistani footprint supports export-driven growth, with subsidiaries in Saudi Arabia and Sweden targeting fiber networks and secure communications.

The Pakistan operations now serve as an export hub, enabling Talkpool to bid for global projects using its low-cost, high-skilled workforce. A 2024 contract with a Tier-1 OEM (€700,000 annually) exemplifies this model, as does its partnership with Thunder Energy Ltd to deploy AI-powered energy solutions for telecom sites.

Risks: Economic Headwinds and Market Volatility

Despite the optimism, challenges persist. Pakistan’s weak currency, high corporate taxes, and low GDP growth (0.6% in 2024) could constrain profitability. CEO Magnus Sparrholm noted these hurdles but emphasized Talkpool’s cost discipline and focus on “high-margin, export-oriented services.”

Talkpool’s equity ratio remains low at 17.4%, and its reliance on a single market—Germany accounts for 40% of revenue—leaves it vulnerable to regional demand shifts. German telecom workloads dipped in Q4 2024, highlighting the need to diversify further.

Conclusion: A Turnaround with Momentum, but Caution Advised

Talkpool’s €4.5 million Pakistan orders are a clear inflection point. They validate its strategy of leveraging low-cost technical expertise and AI-driven efficiency to secure recurring revenue and global market share. With €1.4 million in 2024 operating cash flow and plans to eliminate debt by 2025, the company is financially positioned to capitalize on its Vision 2030 targets.

However, investors must weigh the risks: Pakistan’s economic fragility,Talkpool’s reliance on a few major clients, and its conservative equity metrics. The shares, rebounding to SEK 8.0 (€0.62) in early 2025 from a low of SEK 6.3, reflect optimism but may face volatility if growth stalls.

For now, Talkpool’s Pakistan pivot is a success story—a mix of cost discipline, strategic market focus, and technological innovation. If it can sustain this momentum while mitigating risks, the €40 million 2030 target could be within reach.