LINK Mobility (LINK) reported revenue of NOK 1,597 million, growing 30% in third quarter 2023 with strong FX tailwind and unusually high activity in Global Messaging. Organic revenue growth in fixed currency was 17%. Gross profit and adjusted EBITDA were reported at NOK 317 million and NOK 147 million respectively, with organic growth in fixed currency of 6% and 16%. The European enterprise segments delivered stable growth momentum as expected. YTD Q3 23 organic adjusted EBITDA growth in fixed currency was 12%. The divestment of US subsidiary Message Broadcast will significantly reduce leverage to 1.0x adjusted EBITDA with proceeds from the transaction enabling LINK to fast-track accretive M&A opportunities. LINK’s global ambitions remain unchanged and the US market a priority.
Following the US divestment, Message Broadcast is reported as a discontinued business from Q3 23. The headline figures and restated comparables in this report are thus related to LINK’s European business only.
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The European enterprise segments continued to deliver stable underlying growth supported by a solid contract backlog. Organic gross profit growth in fixed currency was 7% and in line with the previous quarter. The adjusted EBITDA growth of 16% was supported by completed cost reductions in accordance with targets previously communicated.
After close of the third quarter, LINK divested its US subsidiary Message Broadcast for USD 260 million following a highly attractive bid. Upon closing of the transaction, group leverage will be significantly reduced to 1.0x adjusted EBITDA, providing LINK with ample financing capacity for inorganic growth through M&A.
“We are pleased to deliver stable organic gross profit growth as expected in Europe. Our commercial refocus drives more new business from both existing and new clients and we see considerable potential from increased adoption of higher value products. Following the divestment of Message Broadcast, we reignite the execution on our M&A strategy and see substantial inorganic growth opportunities from M&A at accretive valuations”, says Thomas Berge, CEO of LINK.
The quarterly results will be presented in a short 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 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/20231128_4/
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 active customer accounts globally and exchanges 17 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.
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