Link Mobility Group Holding Asa · OSL:LINK
Link Mobility Group Holding Asa — Q4 2024 Earnings Presentation
29 slides from Link Mobility Group Holding Asa's earnings presentation, Feb 13, 2025
Slide 1: Financial presentation Q4 2024
Financial presentation Q4 2024 13 February 2025
Slide 2: Disclaimer
DISCLAIMER The statements contained in this presentation may include forward-looking statements, such as statements of future expectations regarding the Company's results of operations, financial condition, liquidity, prospects, growth and strategies. These statements are based on the management’s c
Slide 3: LINK – European #1 for digital messaging
LINK – European #1 for digital messaging Market leader in Europe - Global ambitions with strong track record for growth #1 +50k >20bn Revenue NOKm 19%* In Europe For Messaging Customer accounts with Messages sent Q ’ LTM reccurring and sticky relations via LINK platforms Broad product portfolio >20
Slide 4: LINK services clients through channel-agnostic solutions
LINK services clients through channel-agnostic solutions Facilitating evolution to multi-channel / two-way solutions and adding value through supporting CPaaS software solutions Enhanced interaction through digital solutions TWO WAYS Uniquely targeted messaging on preferred channels COMMUNICATIONS
Slide 5: Growth supported by increased adoption and CPaaS products
Growth supported by increased adoption and CpaaS products Increased adoption of digital messaging and more advanced products across Europe Gap in digital messaging adoption represents growth opportunity Traction on new CPaaS products adds additional growth • Nordic markets the most mature in the wor
Slide 6: Full year 2024 highlights
Full year 2024 highlights Concluding a strong year in the high end of expectations Growth Scalability Free Cash flow M&A Organic gross profit Organic Adj.EBITDA Strong free cash Acquired 3 targets growth growth flow* and reinitiated M&A pipe 10% 13% 400 mNOK 3 6 Interim Report Q4 2024 * Cash flow fr
Slide 7: Q4 2024 – Strong gross profit growth on high comparables
Q4 2024 – Strong gross profit growth on high comparables Improved profitability and scalable business model fuelling adj. EBITDA growth Total revenue growth reported at 3% to NOK 1,8 billion • Gross profit growth outpacing revenue due to favourable product and client mix • Global Messaging revenue d
Slide 8: High single digit gross profit growth and improved margin
High single digit gross profit growth and improved margin Margin expansion driven by growth on high margin products and favorable traffic mix Group organic gross profit development (NOKm) Total organic gross profit growth of 8% in stable currency Organic enterprise growth of 8% or NOK 27 million • S
Slide 9: Enterprise churn remains low over time
Enterprise churn remains low over time Continued high gross profit growth with Net Retention Rate impacted by termination of low-margin traffic Enterprise and Global Messaging churn (%) Global Messaging churn normalized QoQ • Proactively churned out certain low margin client's last quarter • Revenue
Slide 10: New contract wins – from APIs to CPaaS product sales
New contract wins – from APIs to CPaaS product sales Full year closed contract value up 78% for CPaaS products New agreements signed in quarter CPaaS closed won contract value up 78% yoy in 2024 vs 2023 • Advanced solutions supporting APIs improve profitability • CPaaS contracts representing close t
Slide 11: The Power of RCS – improved reach supports growth
The Power of RCS – improved reach supports growth Operator support improving across key markets and increases RCS reach RCS has superior features vs SMS Improved engagement (clicks, swipes, views) Higher brand awareness Enhanced security Higher conversion Proven ROI 370% Market growth projected Mark
Slide 12: Best RCS Business Messaging Solution: Europe
Award Winning Technology Platinum Award “ As part of its omnichannel communications platform, LINK offers both RCS connectivity and essential management tools, including a click-to-build message builder and an analytics platform. These tools, Best RCS Business combined with strong customer support i
Slide 13: RCS in Nordics – strong campaign results
RCS in Nordics – strong campaign results RCS increasing customer value* LINK’s l l p ese e d RCS ffe s s p me p s supp organizations across Europe as OTT channel (e.g. WhatsApp, Viber) popularity fluctuates between markets. 300%+ 75%+ 70%+ 140%+ Click Rate In Sales Engagement Conversions 41% 79.85%
Slide 14: Diverse M&A pipeline in Europe and beyond
Diverse M&A pipeline in Europe and beyond Substantial gross target list – 11 actionable targets M&A play-book guidelines ● Strong local market position and strong telecom operator relationships ● Cash EBITDA positive and cash accretive to LINK from day one ● Solid, well-diversified customer portfoli
Slide 15: Strategy to deliver value through organic and inorganic growth
Strategy to deliver value through organic and inorganic growth Key objectives medium term Growth Profitability Capital allocation M&A High-single digit Adj.EBITDA growth Accretive M&A first Add 10% inorganic priority gross profit growth > adj.EBITDA through bolt-on M&A Gross Profit growth Leverage p
Slide 16: Financials
Financials Q4 2024 13 February 2025
Slide 17: Stable revenue with mix effect increasing profitability
Stable revenue with mix effect increasing profitability Revenue growth impacted by shift from low margin traffic to higher margin traffic and products Reported revenue NOKm Mix effects leading to 4% organic enterprise growth but 8% gross profit growth • High comparables on high-volume, low margin cl
Slide 18: Reported gross profit growth of 13%
Reported gross profit growth of 13% Organic gross profit growth of 8% supported by more advanced products Gross profit NOKm Organic enterprise gross profit growth of 8% on high comparables • Northern Europe reporting stable performance • Growth momentum reduced by internal clients shifts in 2024 • S
Slide 19: Reported adjusted EBITDA growth of 18%
Reported adjusted EBITDA growth of 18% Adjusted EBITDA growth in stable currency of 12% Adj. EBITDA & Adj. EBITDA margin % Organic growth in adjusted EBITDA 12% in fixed currency • Organic Adj. EBITDA growth of NOK 22 million YoY in fixed currency • NOK 30 million from organic gross profit growth •
Slide 20: P&L – discontinued operations reflecting adjusted earn-out
P&L – discontinued operations reflecting adjusted earn-out ull ear ull ear N in millions T ta e at ng e en es Depreciation and amortization NOK 82 million e t st se es en e e • Depreciation of intangible assets from R&D NOK 17 million ross pro it • e e at n ’s n • Depreciation of leasing and fixed a
Slide 21: Solid balance sheet with healthy capital structure
Solid balance sheet with healthy capital structure Ample capacity for inorganic growth N in millions Non-current assets increase NOK 200 million from M&A add-on n ent assets • Remaining net increase mainly from currency effects T a e an t e e e a es • LINK01 holding of EUR 74 million cancelled as an
Slide 22: Q4 cash flow and interest
Q ’ as n a te a e an nte est LTM free cash generation of NOK 400 million N d .E Cash lo rom operations as % o d .E in ’ • Working capital excluding Interest slightly negative in Q4 nte est e e e • LTM negative working capital expected to normalize t e anges n ng a ta Ta es a Adjusted net cash flow f
Slide 23: Appendix
Appendix Q4 2024 13 February 2024
Slide 24: Northern Europe
Northern Europe Org.growth 2% Revenue (mNOK) Q Q Q Q Q Q e Org.growth en 1% Gross Profit (mNOK) Q Q Q Q Q Q e Org.growth en 5% Adj.EBITDA (mNOK) Q Q Q Q Q Q e 24 Interim Report Q4 2024 en
Slide 25: Central Europe (restated)
Central Europe (restated*) Org.growth 13% Revenue (mNOK) Q Q Q Q Q Q e en Org.growth 23% Gross Profit (mNOK) Q Q Q Q Q Q e Org.growth en 28% Adj.EBITDA (mNOK) Q Q Q Q Q Q e 25 Interim Report Q4 2024 en *Netherlands moved from central Europe to Western Europe from Q1 2024 – historical segment financi
Slide 26: Western Europe (restated)
Western Europe (restated*) Org.growth Growth in fixed ex.M&A currency incl. (1%) M&A Revenue (mNOK) Q Q Q Q Q Q e Org.growth en ex.M&A 2% Gross Profit (mNOK) Q Q Q Q Q Q e en Org.growth ex.M&A 1% Adj.EBITDA (mNOK) Q Q Q Q Q Q e 26 e gan en Interim Report Q4 2024 *Netherlands moved from central Europ
Slide 27: Global Messaging
Global Messaging Org.growth (17%) Revenue (mNOK) Q Q Q Q Q Q e en Org.growth 10% Gross Profit (mNOK) Q Q Q Q Q Q e en Org.growth 17% Adj.EBITDA (mNOK) Q Q Q Q Q Q e 27 Interim Report Q4 2024 en
Slide 28: Customer accounts
Customer accounts LINK serves more than 50.000 customer accounts Customer accounts ‘ * e Growing base over time with more than 50,000 customer accounts • Significant upselling potential beyond initial use-case to existing customers • High commercial success rate in second sale (~70% win-rate) • EZ4U
Slide 29: Q&A
Q&A linkmobility.com/investors 13 February 2025
LINK Mobility Group Holding — Q4 2024 Earnings Presentation on 6ix