LINK Mobility - Q1 24 - Profitable growth ahead of market trends
LINK Mobility (LINK) reported revenue of NOK 1,672 million, growing 25% in first quarter 2024 with FX tailwind. Organic revenue growth in fixed currency was 20%. Gross profit and adjusted EBITDA were reported at NOK 356 million and NOK 158 million respectively, with organic growth in fixed FX at 11% and 17%. Organic adjusted EBITDA growth was reduced by an atypical bad debt provision in the quarter. High Q1 24 cash reserve at NOK 3.4 billion and low leverage, as measured by net debt to adjusted EBITDA, at 1.1x. Remaining EUR bond, maturing in December 2025, to be refinanced within a conservative leverage policy of 2 - 2.5x adjusted EBITDA when appropriate, providing ample financing capacity for LINK's disciplined M&A strategy.
The strong balance sheet enables LINK to continue its proven track record of inorganic growth with more than 30 acquisitions completed in Europe during the last decade. There is substantial scope for further accretive inorganic EBITDA growth through multiple arbitrage transactions in a still highly fragmented industry. Discussions across a diverse M&A pipeline are ongoing and constructive. Smaller bolt-ons in existing markets are a priority to realize further scale, whilst the pipeline also includes several level-up opportunities in both Europe and beyond.
LINK's recurring and growing business is driven by more than 50,000 loyal customers continuing to increase their usage. The industry continues to observe increased adoption rates for digital messaging and traction on higher margin CPaaS solutions. A highly scalable business model drives higher organic adjusted EBITDA growth compared to organic gross profit growth.
"We are pleased to report another quarter at the high end of expectations. Adding solid finances, an accretive M&A track record and several actionable acquisition targets, LINK is well positioned for strong free cash flow growth in 2024 and beyond", 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 questions 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/20240513_1/
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 more than 50,000 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.