Half Year 2024 Link Mobility Group Holding ASA Earnings Call Transcript
Key Points
- LINK Mobility Group Holding ASA (LMGHF) reported strong quarterly growth, with revenue reaching NOK1.8 billion, marking a 17% organic growth in fixed currency.
- The company has a sticky and scalable business model with a low revenue churn rate below 2% and a net retention rate of approximately 110%.
- LINK Mobility Group Holding ASA (LMGHF) has a significant contract backlog, which has increased from mid NOK20 million to around NOK40 million per quarter since the beginning of 2023.
- The company closed the acquisition of easy for you, a Portuguese messaging company, expanding its market share in Portugal.
- LINK Mobility Group Holding ASA (LMGHF) has a strong cash position with NOK2.5 billion in reserves, which will be used for acquisitions and bond repayments.
- Global Messaging segment experienced higher churn, with a total churn rate increasing to 2.9%, attributed to a client ceasing to use their services.
- The company reported a negative free cash flow of NOK16 million for the quarter, impacted by working capital build and higher taxes paid.
- Gross profit growth in the Global Messaging segment was lower at 4% in fixed currency, affected by customer mix effects.
- The enterprise segment experienced a slight decline in margins due to high volumes from a low-margin customer in Central Europe.
- Q3 is expected to have lower new contract wins due to summer vacations affecting business operations in the Nordics and Southern Europe.
Good morning, and welcome to the second-quarter 2024 financial results presentation for Link Mobility. My name is Morten Edvardsen, CFO and Head of Investor Relations and this morning, I'm joined by Thomas Berge, CEO, and we will together present the results. (Event Instructions) Thomas?
Thank you, Morten. The second-quarter of 2024 is another strong quarterly growth rate in the high end of expectations. Link is the leading and largest CPaaS player in Europe. We started out more than 20 years ago in the Nordics and have been part of building the messaging market in the Nordics to one of the most advanced messaging markets in the world.
Link is using this experience to fuel the development in less penetrated markets in Europe, our strategy is dedicated to providing digital communication products through the enterprise market for them to interact with their end customers. We approach the enterprise market
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