Macroeconomic uncertainty impacts the digital messaging industry differently depending on use case
New agreements signed in quarter
● Headwind for retail volumes related to digital marketing which fluctuate with consumer confidence ● Sustained growth for essential notifications use cases
New growth opportunities for efficient customer care solutions
LINK well positioned for continued growth, albeit at lower level in challenging macro environment
Retail sector has lowered spend on marketing activities resulting in reduced messaging volumes
● New client wins are however holding up at normal levels
Churn remains stable at a very low level
Customer churn %
Retail volumes expected to recover and normalize again when consumer confidence improves
3
LINK enhances focus on current growth and cash generation
LINK recalibrates more resources to current market growth opportunities
Prioritizes mature products and selected CPaaS solutions with proven market demand
Advanced CPaaS solutions have low market adoption and longer revenue lead times as clients need to adapt their value chains
Previous overinvestments in building market adoption have lowered traction on near-term growth execution
LINK to ensure continued strong FCF generation through execution on
OPEX reductions - aligning costs to near-term growth expectations
CAPEX reductions - product development already ahead of market adoption
Consolidation of acquired assets to extract costs and revenue synergies
Large upselling potential for more advanced products as market adoption rates gain momentum
Technological advances last 3 years been more rapid than customer penetration
4
Second quarter report 2022 highlights
Revenue grew 12% to NOK 1,177 million in Q2 22. High Q2 21 comparables reduced organic growth to 4%
● Underlying organic growth at 11%, below previous quarters as certain retail clients in specific markets are reducing spend in a response to a more uncertain macro environment
Gross profit increased 18% to NOK 317 million in the quarter
● Organic gross profit declined 1% due to high comparables and customer mix effects
● OPEX increased by NOK 10 million related to GTM investments initiated since H2 2020
Strong cash flow from operations in excess of NOK 200 million in Q2 22
Free cash flow (FCF) of NOK 100 million after capex and interest payments
LINK signed 571 new agreements in the second quarter of the year (new and expanding)
● Good momentum in new customer wins with strong potential for future growth
Longer ramp up times for new contracts in adoption of more advanced CPaaS solutions
5
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Link Mobility Group Holding ASA published this content on 16 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2022 04:11:11 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.