LINK Mobility Group Holding ASA - Financial report fourth quarter 2020
LINK Mobility Group (LINK) reports strong revenue growth driven by the Enterprise segment, which continued the upward trend seen over several quarters. LINK is on track to generate mid to long-term organic growth of 20% with its focus on Enterprise customers and successful go-to-market (GTM) strategy. All-time high adjusted EBITDA to gross profit ratio of 45 percent demonstrate the scalability of the company. Government restrictions have had a short-term negative effect on revenue growth ; however, the pandemic has also resulted in unexpected digitalization which will accelerate the transition to more engaging CPaaS solutions. LINK exceeded its full year outlook for 2020 and now targets NOK 10 billion in pro forma revenue by 2024.
LINK achieved an operating revenue of NOK 1 041 million in the fourth quarter or 18 percent growth compared with the corresponding period last year. The Enterprise segment generated 18 percent organic growth and is on track to drive LINK's mid to long-term organic revenue growth ambition to 20% with an increasing growth rate over the last 5 quarters. Organic growth in the Enterprise segment was offset by a modest decline in volumes in the low margin aggregator business, resulting in total organic growth of 16%.
The reported growth in adjusted EBITDA was 25 percent or NOK 24 million, whereof NOK 7 million was related to the acquisition of WebSMS, compared to the corresponding period last year. The adjusted EBITDA margin at 11 percent increased somewhat to the same quarter last year.
"We are happy to report yet another quarter with strong growth in 4Q20. We added close to 9.000 new customer accounts during last year, taking the total number of LINK customers past 40.000. The continued upward growth in our strategic Enterprise segment, our M&A pipeline and strong market trends, support our NOK 10 billion revenue target for 2024," 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.
To join the audio webcast, please go to
https://channel.royalcast.com/landingpage/hegnarmedia/20210216_8/
The webcast will also be available from LINK's investor relations pages
https://linkmobility.com/investor-relations/
The audio webcast is mainly targeted towards investors, analysts and media. A Q&A session will be held at the end of the presentation. Attendees will be able to post questions during the webcast.
For further information, please contact
Tom Rogn, VP Investor Relations +47 94 85 56 59 tom.rogn@linkmobility.com press@linkmobility.com
About LINK Mobility
LINK is one of Europe's leading providers 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. As of year-end 2020, the Group had 40,600 customer accounts and during 2020 LINK exchanged 10.5 billion messages. 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.