LINK Mobility - Q2 23 - Organic growth drives deleveraging
LINK Mobility (LINK) reports revenue of NOK 1,652 million, growing 40% in the second quarter of 2023 with continued strong FX tailwind. Organic revenue growth in fixed currency was 23%. Gross profit and adjusted EBITDA were reported at NOK 410 million and NOK 191 million respectively, with organic growth in fixed currency of 15% and 32%. The US business continued its strong performance despite no critical events messaging in the quarter. Europe improved with better retail volumes YoY and opex reductions delivered as planned. Strong free cash flow generation in the quarter of NOK 129 million supported leverage declining further to 4.0x. LINK reiterates its forward-looking statement for 2023 for an organic adjusted EBITDA growth of 12-15% in fixed currency.
LINK continued to experience strong momentum in the US with high growth in messaging solutions from both new and existing clients. There were as expected no critical events messaging in the second quarter, as it is a seasonal business related to winter storms in Q1 and mainly droughts and hurricanes in H2.
In Europe, the enterprise segments experienced higher growth with improved retail activity YoY and increased contribution from a higher contract backlog. Execution on both commercial initiatives and cost reductions supported improved profitability. The cost initiatives announced last year have now effectively been completed with an annualized FCF effect of more than NOK 100 million.
"We are happy to see continued growth momentum in the US and improved activity in Europe from a higher contract backlog driven by commercial initiatives. Combined with successful execution on cost initiatives, a strong free cash flow reduced leverage further. Our first half performance provides increased confidence in delivering on full year expectations", says Thomas Berge, CEO of LINK.
The quarterly results will be presented in an audio webcast at 10:00 CET today by Thomas Berge, CEO and Morten Edvardsen, CFO.
The audio webcast targets investors, analysts and media. Attendees will be able to 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/20230816_1/
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 2195 6342 SE: +46 8 1241 0952 DK: +45 7876 8490 UK: +44 203 769 6819 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 an award-winning, 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 50 thousand customer accounts globally and exchanges 18 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 and follow LINK Mobility on LinkedIn.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.