Link Mobility Group Holding Asa · OSL:LINK
Link Mobility Group Holding Asa — Q3 2024 Earnings Presentation
27 slides from Link Mobility Group Holding Asa's earnings presentation, Nov 5, 2024
Slide 1: Financial presentation Q3 2024
Financial presentation Q3 2024 5 November 2024
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 >19bn Revenue NOKm 20%* In Europe For Messaging Customer accounts with Messages sent Q3’24 LTM reccurring and sticky relations via LINK platforms Broad product portfolio >2
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: Q3 2024 highlights – Organic growth in line with expectations
Q3 2024 highlights – Organic growth in line with expectations Executing on M&A strategy and high single digit organic gross profit growth Revenue stable at NOK 1,7 billion after LINK terminating low margin aggregator traffic • Global Messaging revenue decline of NOK 87million due to LINK terminating
Slide 6: Organic gross profit growth in line with expectations
Organic gross profit growth in line with expectations Gross margin expansion yoy from higher share of Enterprise in revenue mix Group organic gross profit development (NOKm) Total organic gross profit growth of 9% in stable currency • Western impacted by bankruptcy churn and disputed operator price
Slide 7: Enterprise business churn low over time
Enterprise business churn low over time Net Retent n Rate n Q3’24 m a ted te m nat n f w-margin traffic in Global Messaging Enterprise and Global Messaging churn (%) Elevated churn in Global Messaging related to termination of low-value traffic 2 2 Enterprise churn slightly elevated from previous qu
Slide 8: New contract wins – increased demand for OTT channels
New contract wins – increased demand for OTT channels Closed won contracts growing 16% yoy in a seasonally slower quarter driven by signed CPaaS contracts New agreements signed in quarter Continued growth in CPaaS contracts sold yoy • CPaaS contracts representing close to 40% of signed contracts • O
Slide 9: Scaling on large clients combining chatbot and RCS
Scaling on large clients combining chatbot and RCS Apple support for RCS business messaging confirmed in selected markets International Retailer - Toys International Retailer – Convenience store 7:1 600+ aq aq Return on Investment SPECIAL EDITION – OUT NOW! Stores WIN TICKETS TO THE CHAMPIONS LEAGUE
Slide 10: M&A pipeline progressing as planned with closed acquisitions
M&A pipeline progressing as planned with closed acquisitions Strengthened market position in Iberian Peninsula and UK EZ4U acquired in Portugal Replenished prioritized list of targets • Enterprise value of EUR 3.5 million • Short-term actionable targets maturing through funnel • Updated prioritized
Slide 11: Strategy to deliver value through organic and inorganic growth
Strategy to deliver value through organic and inorganic growth LINK’s business model is scalable and highly cash generative • Organic gross profit growth in high single digits historically • Organic adjusted EBITDA expected to grow at higher rate than organic gross profit Diverse M&A pipeline with a
Slide 12: Financials
Financials Q3 2024 5 November 2024 Internal
Slide 13: Restructured debt profile and finalized share buyback in October
Restructured debt profile and finalized share buyback in October Own bonds holding of EUR 74 million cancelled and issued new EUR 125 million bond Refinanced 125mEUR of “LINK01” in October 2023 Share buy back program concluded on 16th October • Iss ed new UR 2 m n “LINK 2” nd • Total of 17 million s
Slide 14: Reported revenue YoY growth 4%
Reported revenue YoY growth 4% Total revenue stable yoy in fixed FX from termination of low value traffic in Global Messaging Reported revenue NOKm Enterprise segments with 8% organic revenue growth in fixed FX • Revenue growth in enterprise segments in line with volume growth • EZ4U acquisition in
Slide 15: Reported gross profit YoY growth 13%
Reported gross profit YoY growth 13% Organic gross profit growth of 9% in line with expectations Gross profit NOKm Organic gross profit growth of 9% in fixed FX • Organic growth in Enterprise segments was 6% in stable currency • Growth of 8% excluding isolated churn and cogs increase in Italy • N t
Slide 16: Enterprise gross profit growth trends
Enterprise gross profit growth trends Growth momentum QoQ impacted by isolated events in Western Europe Gross profit (mnok) / yoy organic gross profit growth (fixed FX) % 2 Organic enterprise gross profit growth of 6% yoy in Q3 Group 3 32 34 2 3 3 2 3 Western Europe growth in Q3 impacted by isolated
Slide 17: Reported adjusted EBITDA YoY growth 13%
Reported adjusted EBITDA YoY growth 13% Adjusted EBITDA growth in stable currency of 10% Adj. EBITDA & Adj. EBITDA margin % 3 2 2 3 Organic growth in adjusted EBITDA 10% in fixed currency 4 2 2 • Organic Adj. EBITDA growth of NOK 15 million YoY in fixed currency • NOK 27 million from organic gross p
Slide 18: P&L – Interest costs on bond partly offset by deposit interest
P&L – Interest costs on bond partly offset by deposit interest Non-recurring costs of NOK 38 million • M&A costs of NOK 13 million • Costs related to restructuring NOK 9 million • Share-option cost of NOK 15 million Depreciation and amortization NOK 86 million • Depreciation of intangible assets fro
Slide 19: Solid balance sheet with ample capacity for inorganic growth
Solid balance sheet with ample capacity for inorganic growth Acquisition of NRS included in third quarter balance sheet • Non-current assets increase yoy from own bonds purchased and M&A • EZ4U and Net Real Solutions acquisitions contribute NOK 189 million • Trade and other receivables includes NOK
Slide 20: LTM free cash generation of more than NOK 400 million
Q3’24 as f w m a ted s t ve nte est e e ved LTM free cash generation of more than NOK 400 million L 3 NOK 000 2023 1 202 2 202 3 202 202 d E I 1 1 15 1 0 1 Cash generation in Q3 positively impacted by working capital Inte est e e ved • Working capital normalized after build up previous quarter t e a
Slide 21: Appendix
Appendix Q3 2024 5 November 2024 Internal
Slide 22: Northern Europe
Northern Europe Org.growth 0% Revenue (mNOK) Org.growth 3% Gross Profit (mNOK) Org.growth 0% Adj.EBITDA (mNOK) 22 Interim Report Q3 2024 Internal
Slide 23: Central Europe (restated)
Central Europe (restated*) Org.growth 17% Revenue (mNOK) Org.growth 15% Gross Profit (mNOK) Org.growth 19% Adj.EBITDA (mNOK) 23 Interim Report Q3 2024 *Netherlands moved from central Europe to Western Europe from Q1 2024 – historical segment financial have been updated accordingly Internal
Slide 24: Western Europe (restated)
Western Europe (restated*) Org.growth Growth in fixed ex.M&A currency incl. 7% M&A Revenue (mNOK) Org.growth ex.M&A 2% Gross Profit (mNOK) Org.growth ex.M&A (2%) Adj.EBITDA (mNOK) 24 Interim Report Q3 2024 ed gan *Netherlands moved from central Europe to Western Europe from Q1 2024 – historical segm
Slide 25: Global Messaging
Global Messaging Org.growth (18%) Revenue (mNOK) Org.growth 34% Gross Profit (mNOK) Org.growth 52% Adj.EBITDA (mNOK) 25 Interim Report Q3 2024 Internal
Slide 26: Customer accounts
Customer accounts LINK serves more than 50.000 customer accounts ustomer accounts (‘000)* 2 23 4 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
Slide 27: Q&A
Q&A linkmobility.com/investors 5 November 2024 Internal
LINK Mobility Group Holding — Q3 2024 Earnings Presentation on 6ix