Interim report second quarter 2021
LINK Mobility (LINK) reports revenue growth of 26% to NOK 1 055 million in the second quarter of 2021. Organic revenue growth in local currency was 23%, above the medium to long term growth target due the catch-up effects from reopening of societies.
LINK closed several acquisitions in the quarter, including Message Broadcast in the U.S., resulting in pro forma LTM Q2 21 revenue and adjusted EBITDA of NOK 4 362 million and NOK 622 million, respectively. LINK reiterates its forward-looking statement which targets NOK 10 billion in pro forma revenue by 2024 and increases the adjusted EBITDA margin range to 15-17% from 13-15%.
The acquisition of Soprano is progressing, and SPA is expected to be formally signed shortly. Including Soprano, pro forma LTM Q2 21 figures would be NOK 5 045 million and NOK 804 million for revenue and adjusted EBITDA.
LINK is experiencing accelerated demand for CPaaS solutions and saw its most successful quarter ever on OTT traffic. LINK recently signed an additional significant WhatsApp agreement for customer service dialogue with Deutsche Post.
Organic revenue growth in local currency was 23% year over year, positively affected by the reopening of societies as enterprises are re-engaging activities towards end-users, leading to a catch-up effect from the softer volume development experienced both in Q1 21 and Q2 20. Gross profit grew 22% to NOK 268 million compared to the same quarter last year. The gross profit margin declined slightly to 25% (26%), reflecting a higher portion of revenue from the low margin aggregator segment and customer mix effects. Reported growth in adjusted EBITDA was 22% to NOK 119 million. The adjusted EBITDA margin was stable year over year at 11%.
“We are delighted to see societies reopening, releasing pent-up demand and helping LINK to grow above our 20% organic target. LINK has now been transformed to a global CPaaS player, ideally positioned to expand further in high growth markets. We reiterate our forward-looking statement and raise our margin expectations”, says Guillaume Van Gaver, CEO of LINK.
Read the report here.