#1 in Europe for enterprise digital messaging - Established player for more than 20 years
~ 700 employees in 30 offices across 18 countries
Revenue NOKm
17 billion messages sent annually by 51,000 customers
Adjusted EBITDA NOKm
2
Interim Report Q1 2023
Q1 2023 highlights
Stronger than expected first quarter
Revenue reported at NOK 1 440 million. Organic growth in fixed currency 12%
US reporting a 119% revenue growth with traction on messaging services and diversification of critical events messaging
Europe reported modest revenue growth as expected at 4% held back by high comparables due to significant covid traffic same period last year
Gross profit reported at NOK 398 million. Organic growth in fixed currency 13%
Increased margins for enterprise clients due to mix effects with a higher portion of revenue deriving from high margins clients and products
Adjusted EBITDA reported at NOK 181 million. Organic growth in fixed currency 16%
Opex reductions delivered as plan with a contribution of NOK 17 million in the quarter
High cash generation after capex and interest of NOK 118 million
Group leverage reduced to 4.3x from 4.6x previous quarter
LINK signed all-time high 826 new and expanding agreements in the first quarter
Forecasted gross profit contribution from new contracts in the last two recent quarters significantly higher than historical averages
3
Interim Report Q1 2023
Reported figures impacted by NOK depreciation
NOKm
Q1 2022
Organic growth
FX effect
Q1 2023
Revenue
1 174
138
128
1 440
Organic growth (%)
12%
Gross profit
322
41
35
398
Organic growth (%)
13%
Adjusted EBITDA
142
23
16
181
Organic growth (%)
16%
Gross profit growth better than expected
Europe as expected whilst US exceeds expectations
US reporting high gross profit growth
Strong momentum for messaging solutions
Catch-upeffect from build-up of contract backlog last year
Two new clients signed end of last year started to contribute to the P&L
Critical events messaging amounting to USD 1.4 million in Q1 23
Related to winter storms from broader geographical exposure enabled by new clients
Moderate underlying growth in Europe as expected
High comparables as Q1 2022 experienced large volumes due to covid testing
Softer European retail volumes in January and February following a stronger Q4 22
High order backlog into 2023 expected to improve growth momentum gradually through the year
Organic gross profit development in NOKm
Quarterly US revenue USDm
4
Interim Report Q1 2023
Cost reduction initiatives delivered according to plan
Reported costs higher with NOK depreciation
Opex development YoY NOKm
Opex growth of 10% in stable currency
• Investments in commercial capabilities in the US through 2022 and onboarding of customer base with full effect in the quarter
• Limited growth in opex in European footprint at 5%
Cost reductions at Group level drives decline YoY in group costs
Cost initiatives delivering according to communicated plans
Cost saving initiatives in fixed FX NOKm
Total cash savings from cost initiatives expected at NOK 105 million
level as previously communicated.
• Depreciation of NOK impacts nominal effect of cost reductions
5
Interim Report Q1 2023
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Link Mobility Group Holding ASA published this content on 10 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 May 2023 04:05:07 UTC.
Link Mobility Group Holding ASA, formerly Victory Partners VIII Norway Holding AS is a Norway-based Communications Platform as a Service (CPaaS) provider. The Company develops and operates software for mobile telephone services to private and public businesses. Link Mobility Group Holding ASA is the Parent Company of LINK Mobility Group AS, that is a provider of services in mobile communication and a specialist in mobile messaging services, mobile solutions, and mobile intelligence. The Groupâs activities are divided into five reporting segments: Northern Europe, Western Europe, Central Europe, Northern America and Global Messaging. The Groupâs subsidiaries include MarketingPlatform Aps, Labyrintti International Oy, LINK Mobility Holding Aps as well as Link Mobility Development Hub EOOD.