Financial presentation

Q1 2023

10 May 2023

LINK in short

#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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Disclaimer

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.