LINK Mobility - Interim report third quarter 2021
LINK Mobility (LINK) reports strong revenue growth of 37% to NOK 1,112 million in the third quarter of 2021 including acquired entities. Organic revenue growth in local currency was 16% and in-line with medium term growth targets. Gross profit increased 57% to NOK 325 million and the margin expanded to 29% from 25% in the same period last year, reflecting accretive contributions from acquired entities. Adjusted EBITDA grew 72% to NOK 152 million with margin at 13.7%. LINK reiterates its long-term forward-looking statement to 2024 and specifies its medium-term growth expectation in the 14-17% range.
LINK is experiencing increased demand for CPaaS solutions and is executing on its go-to-market (GTM) strategy, which includes roll-out of self-sign-up (SSU) platforms and a further expansion of the partner network. The acquisition of Message Broadcast in the US is the start of acquisitions outside Europe and a beachhead for further M&A in the US. After end of quarter, Message Broadcast won another new material contract with a large US utilities company which has more than 4 million customers, further strengthening its position in that vertical.
Global messaging revenue increased organically in local currency at 47%, positively impacting growth rates on total revenue. For the Enterprise segment, all markets rebounded after lockdowns imposed by the authorities due to the pandemic except in France, where retail activity remained below normal levels. All-time high gross profit of NOK 325 million. Organic gross profit growth in local currency was 7%, reflecting the larger proportion of global messaging volumes at a lower margin. Organic gross margin in the Enterprise segment was stable in Q3 21 compared to same period last year. Reported adjusted EBITDA reached an all-time high NOK 152 million and the adjusted EBITDA margin improved 2.8 percentage points to 13.7% YoY. Organic adjusted EBITDA declined slightly due to OPEX investments reflecting the current roll-out of GTM initiatives and commercialization of new CPaaS solutions in the market.
LINK was ranked an established leader in Juniper Research's new CPaaS Competitor Leaderboard in the quarter. The leaderboard clearly highlights LINK's leading position in the industry.
"We are very pleased to report strong growth and higher margins in the quarter, reflecting accretive acquisitions and our expansion to the US. Improved activity in most markets and the new foothold in the US support both organic growth and provide further M&A opportunities", says Guillaume Van Gaver, CEO of LINK.
The quarterly results will be presented in an audio webcast at 10:00 CET today by Guillaume Van Gaver, CEO and Thomas Berge, CFO.
The audio webcast targets investors, analysts and media. Attendees will be able to both post and ask questions directly in a Q&A session following the webcast.
To join the audio webcast and post questions, please go to
https://channel.royalcast.com/landingpage/hegnarmedia/20211103_7/
The webcast is also available from LINK's investor relations pages
https://linkmobility.com/investor-relations/
To ask questions directly in the Q&A session, please dial in
PIN Code for all countries: 799682
NO: +47 21956342 DK: +45 7876 8490 SE: +46-4-0682-0620 UK: +44 203-7696819 US: +1 646-787-0157
For further information, please contact
Tom Rogn, VP Investor Relations +47 94 85 56 59 tom.rogn@linkmobility.com
About LINK Mobility
LINK is a leading global provider of mobile messaging and communications platform as a service (CPaaS) solutions for increased engagement. The company serves enterprise, SME, and government customers. LINK offers a wide range of innovative and scalable mobile solutions, creating valuable digital convergence between businesses and customers, governments and citizens, platforms and users. LINK has 47,000 customer accounts globally and exchanges more than 10 billion messages a year. LINK is listed on the Oslo Stock Exchange under the ticker LINK. For more information about LINK, please see www.linkmobility.com
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act