LINK Mobility - Q4 23 - Strong organic growth
LINK Mobility (LINK) reported revenue of NOK 1,796 million, growing 26% in fourth quarter 2023 with strong FX tailwind. Organic revenue growth in fixed currency was 14%. Gross profit and adjusted EBITDA were reported at NOK 385 million and NOK 181 million respectively, with organic growth in fixed FX of 13% and 24% at the high end of expectations. FY 23 organic growth in fixed FX was 7% and 15% respectively. Cost reductions completed early 2023 supported full year scalability. The divestment of the US subsidiary, closed 3 January 2024, resulted in a significant cash balance, providing opportunity for bond and potentially share buybacks in addition to accretive M&A. The remaining EUR bond, maturing in December 2025, is to be refinanced with net debt in the 2 - 2.5x adjusted EBITDA range, a more conservative policy than previously.
After close of the fourth quarter, LINK finalized the divestiture of its US subsidiary for an enterprise value of USD 260 million, including a 2024 performance pending cash earnout of up to USD 30 million. The transaction resulted in a cash reserve of NOK 3.4 billion after closing, providing ample financing capacity for inorganic growth through M&A.
LINK's recurring and growing business is driven by 50 thousand loyal customers continuing to increase their usage. The industry is currently observing increased adoption rates for digital messaging and traction on higher margin CPaaS solutions. A highly scalable business model ensures adjusted EBITDA continues to grow faster than gross profit.
"We are very happy to report growth at the high end of expectations in the final quarter of 2023. Our commercial refocus has increased the contract backlog and completed cost reductions further support scalability. A strong cash position of NOK 3.4 billion provides financial capacity to strengthen acquisition activity with a significant scope for inorganic growth as the M&A pipeline in Europe alone exceeds NOK 200 million in additional EBITDA potential", 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/20240215_17/
The webcast is also available from LINK's investor relations pages https://linkmobility.com/investor-relations/
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.