LINK Mobility – Q4 24 – Concluding a strong year with a solid quarter

13 Feb 2025 06:00 CET

LINK Mobility (LINK) reports a solid quarter with gross profit and adjusted
EBITDA at NOK 436 million and NOK 213 million respectively, with organic growth
in fixed currency at 8% and 12%. This concludes a strong year with organic
growth above expectations with double digit gross profit growth and improved
profitability demonstrated through adj.EBITDA margin expansion. LINK continues
to execute on the strategy of local presence in our markets resulting in strong
commercial results securing future growth momentum. Inorganic growth is a key
part of the strategy reflected in the fourth quarter through the acquisition of
Reach-Data in the UK, and we see further potential to consolidate the European
messaging market at accretive multiples.

Organic gross profit growth for the quarter was 8% and outpaced revenue growth
from replacing low-margin revenue with high margin traffic and advanced
products. As in the previous quarter revenue growth was impacted by termination
of low value traffic in the Global Messaging segment while Enterprise revenue
growth was reported at low single digit and below gross profit growth of 8% for
this segment. Profitability improved and was reflected through expansion in both
gross margin and adjusted EBITDA margin to 23.6% and 11.5% respectively in the
quarter.

The results conclude a strong year delivered above expectations with organic
double-digit gross profit growth and higher adjusted EBITDA growth of 13%
supported by the scalable business model.

LINK’s recurring and growing business is driven by more than 50,000 loyal
customers continuing to increase their usage. Growth momentum is supported by
increased adoption rates for digital messaging and traction on higher margin
CPaaS software solutions and OTT channels like RCS and What’s App. Operator
support for RCS Business Messaging continue to expand across LINKs footprint
paving the way for future growth. LINK is well positioned to capture RCS growth
with the RCS Business Messaging solution recently awarded Junipers Platinum
Award as the best in Europe.

The strong financial position enables LINK to continue its proven track record
of inorganic growth with more than 35 acquisitions completed in Europe during
the last decade. The acquisitions closed during 2024 are in line with LINKs
disciplined M&A strategy and was closed at EV/Cash EBITDA multiples in the
historical range of between 6-7x. The prioritized pipeline consists of 11
targets, whereof 4 are in due diligence stage and total pipeline value of EUR
30-40 million cash EBITDA.

LINK reiterates medium term ambitions of continued high single digit gross
profit growth and adjusted EBITDA growth at higher pace supported by the
scalable business model. Inorganic growth will continue to be a key pillar for
building further scale and ambition level is to add 10% of adjusted EBITDA
through bolt-on acquisitions. A sound capital allocation policy is set that
prioritizes accretive M&A but within net debt to adjusted EBITDA roof of 2.0 –
2.5x.

“We are pleased to report a strong quarter concluding a year above expectations
with double digit gross profit growth and improved profitability. Our organic
business growth has outgrown the market and LINK continue to be in the forefront
of market consolidation in Europe. We target value creation from both profitable
organic growth and further accretive inorganic growth into 2025 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 & VP Investor Relations.

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/20250213_12/

The webcast is also available from LINK’s investor relations pages
https://linkmobility.com/investor-relations/



For further information, please contact

Morten Løken Edvardsen, CFO & VP Investor Relations
+47 90 56 15 89
ir@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 more than 20 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.

More information:
Access the news on Oslo Bors NewsWeb site

638457_LINK 4Q24 report.pdf
638457_LINK 4Q24 presentation.pdf