Truecaller's Share Repurchase: A Week 40, 2024 Analysis

Truecaller AB, the leading global platform for verifying contacts and blocking unwanted communication, has been actively repurchasing its B shares as part of its share buyback program. This article delves into the repurchase of Truecaller B shares in week 40, 2024, and its implications on the company's capital and financial metrics.

During week 40, 2024, Truecaller repurchased a total of 170,000 B shares, corresponding to 0.05% of the outstanding capital. This is a slight increase compared to the previous week, where 150,000 shares were repurchased, representing 0.04% of the outstanding capital. The weighted average share price per day during week 40 was SEK 39.22, compared to SEK 38.96 in the previous week.


The total daily transaction value in week 40 was SEK 6,668,134, compared to SEK 5,483,839 in the previous week. This increase in transaction value suggests a higher level of activity and interest in Truecaller's shares during week 40.

The repurchase of Truecaller B shares in week 40, 2024, has a positive impact on the company's outstanding capital. With the repurchase of 170,000 shares, Truecaller's holding of own shares increased to 3,337,832 B shares, representing 2.67% of the outstanding capital. This reduces the number of outstanding shares, which can lead to an increase in earnings per share (EPS) and return on equity (ROE) for Truecaller.


The share buyback program also affects Truecaller's debt-to-equity ratio and financial leverage. As the company repurchases shares, it reduces its equity, which can lead to an increase in debt-to-equity ratio and financial leverage. However, the impact on Truecaller's dividend policy and payout ratio is less clear, as the company may choose to maintain its dividend payments despite the share repurchase.

In conclusion, the repurchase of Truecaller B shares in week 40, 2024, has a positive impact on the company's outstanding capital and financial metrics. The increase in transaction value suggests higher interest in Truecaller's shares, while the repurchase reduces the number of outstanding shares, potentially leading to an increase in EPS and ROE. However, the impact on debt-to-equity ratio, financial leverage, and dividend policy remains to be seen.