LINK Mobility Group Holding ASA · OSL:LINK
LINK Mobility Group Holding ASA — Q1 2023 Earnings Presentation
22 slides from LINK Mobility Group Holding ASA's earnings presentation, May 10, 2023
Slide 1: Financial presentation Q1 2023
Financial presentation Q1 2023 10 May 2023
Slide 2: LINK in short
LINK in short #1 in Europe for enterprise digital messaging - Established player for more than 20 years ~ 700 employees in 30 offices across 18 countries Revenue NOKm 17 billion messages sent annually by 51,000 customers Adjusted EBITDA NOKm 2 Interim Report Q1 2023
Slide 3: Q1 2023 highlights
Q1 2023 highlights Stronger than expected first quarter Revenue reported at NOK 1 440 million. Organic growth in fixed currency 12% • US reporting a 119% revenue growth with traction on messaging services and diversification of critical events messaging • Europe reported modest revenue growth as exp
Slide 4: Gross profit growth better than expected
Gross profit growth better than expected Europe as expected whilst US exceeds expectations US reporting high gross profit growth Organic gross profit development in NOKm • Strong momentum for messaging solutions • Catch-up effect from build-up of contract backlog last year • Two new clients signed e
Slide 5: Cost reduction initiatives delivered according to plan
Cost reduction initiatives delivered according to plan Reported costs higher with NOK depreciation Opex development YoY NOKm Opex growth of 10% in stable currency • Investments in commercial capabilities in the US through 2022 and onboarding of customer base with full effect in the quarter • Limited
Slide 6: Strong growth in European contract backlog
Strong growth in European contract backlog SMS remains the channel of choice with more than 5 billion global users Clear step up in new contract wins following commercial refocus last year • High contract backlog into 2023 to materialize in P&L throughout the year Gross profit contribution from new
Slide 7: LINK grows and retains customers
LINK grows and retains customers Base expanding quarter by quarter Customer accounts 51’ active customer accounts, growing 8% YoY Organic growth 3,611 new customer accounts Record new agreements signed Contract wins grew 10% YoY to 826 Customer churn remained low at 1.5% in Q1 23 New agreements sign
Slide 8: Q1 on-track to deliver 2023 forward-looking statement
Q1 on-track to deliver 2023 forward-looking statement Forward-looking statement 2023 reiterated Gross profit growth expected to be higher than in 2022 Organic adjusted EBITDA growth expected to be 12-15% in fixed currency • Supported by execution on opex savings Market trends confirm shift towards c
Slide 9: Financial review
Financial review Q1 2023 Ag # link mobility
Slide 10: Reported revenue growth of 23%
Reported revenue growth of 23% FX tailwind contributed 11 percentage points Reported revenue NOKm Organic revenue growth of 12% in fixed currency • Higher than expected revenue contribution from the US • Critical events related revenue of NOK 14 million from winter storms • Messaging solutions growt
Slide 11: Gross profit growth of 24%
Gross profit growth of 24% FX tailwind contributed 11 percentage points to gross profit growth Gross profit NOKm Organic gross profit growth 13% in fixed currency • Large contribution to growth from high margin US business • Gross profit growth in European negatively impacted by comparables • Q1 22
Slide 12: Adjusted EBITDA growth of 27%
Adjusted EBITDA growth of 27% FX tailwind contributed 11 percentage points to reported adjusted EBITDA growth Opex NOKm Organic growth in opex of 10% in fixed currency • US main contributor to opex growth • Investments through 2022 and adding on customer base late Q4 22 • European opex growth manage
Slide 13: P&L - Non-recurring costs shifted to lower level
P&L - Non-recurring costs shifted to lower level Non-recurring costs of NOK 14 million • Share-option cost of NOK 7 million • Restructuring costs of NOK 4 million • Costs related to M&A of NOK 3 million Depreciation and amortization NOK 108 million • Depreciation of intangible assets NOK 20 million
Slide 14: Solid balance sheet
Solid balance sheet Non-current assets increased mainly due to currency effects • Marginal additions related to PPA Cash on balance sheet NOK 964 million • Expanding QoQ from free cash flow generation and positive FX impact Equity NOK 5,508 million and equity percentage of 47% Receivables and payabl
Slide 15: LINK leverage trending down
LINK leverage trending down Strong growth in adjusted EBITDA and high cash conversion drives leverage down to 4.3x Adjusted LTM cash flow from operations NOK 549 million Reported cash flow from operations include M&A related expenses FCF generated after capex and interest of NOK 337 million Working
Slide 16: Appendix
Appendix Q1 2023 Ag # link mobility
Slide 17: Northern Europe
Northern Europe Org.growth 3% Revenue (mNOK) Org.growth 3% Gross Profit (mNOK) Org.growth 5% Adj.EBITDA (mNOK) 17 Interim Report Q1 2023
Slide 18: Central Europe
Central Europe Org.growth 10% Revenue (mNOK) Org.growth (4%) Gross Profit (mNOK) Org.growth (8%) Adj.EBITDA (mNOK) 18 Interim Report Q1 2023
Slide 19: Western Europe
Western Europe Org.growth +1% Revenue (mNOK) Org.growth (0%) Gross Profit (mNOK) Org.growth (15%) Adj.EBITDA (mNOK) 19 Interim Report Q1 2023
Slide 20: North America
North America Org.growth +119% Revenue (mNOK) Org.growth +106% Gross Profit (mNOK) Org.growth +161% Adj.EBITDA (mNOK) 20 Interim Report Q1 2023
Slide 21: Global Messaging
Global Messaging Org.growth +25% Revenue (mNOK) Org.growth +8% Gross Profit (mNOK) Org.growth +18% Adj.EBITDA (mNOK) 21 Interim Report Q1 2023
Slide 22: Q&A
Q&A linkmobility.com/investors 10 May 2023
LINK Mobility Group Holding — Q1 2023 Earnings Presentation on 6ix