Financial presentation

Q2 2023

16 August 2023

LINK in short

#1 in Europe for enterprise digital messaging - Established player for more than 20 years

~ 650 employees in 30 offices across 18 countries

Revenue NOKm

18 billion messages sent annually by ~ 50,000 customers

Adjusted EBITDA NOKm

2

Interim Report Q2 2023

Q2 2023 highlights

Strong organic growth reduced leverage to 4.0x

Revenue reported at NOK 1 652 million. Organic growth in fixed currency 23%

  • US reported organic revenue growth of 79% in fixed currency
    • Continued traction on messaging services from high contract backlog on both new and existing clients
  • Enterprise segments in Europe reported organic revenue growth of 12% in fixed currency
    • Supported by higher contract backlog and improved retail volumes YoY

Gross profit reported at NOK 410 million. Organic growth in fixed currency 15%

  • US segment reported growth of 52% in fixed currency
  • Growth rate improved for enterprise segments in Europe to 7% in fixed currency

Adjusted EBITDA reported at NOK 191 million. Organic growth in fixed currency 32%

  • Solid improvement in gross profit
  • Opex reductions delivered ahead of plan

Group leverage continued lower to 4.0x from 4.3x in the previous quarter

  • High cash generation after capex and interest of NOK 129 million

LINK signed 715 new and expanding agreements in the second quarter

  • New signings increased 25% YoY supporting long-term growth momentum

3

Interim Report Q2 2023

Reported figures impacted by NOK depreciation

NOKm

Q2 2022

Organic growth

FX effect

Q2 2023

Revenue

1 177

268

207

1 652

Organic growth (%)

23%

Gross profit

317

46

47

410

Organic growth (%)

15%

Adjusted EBITDA

129

41

21

191

Organic growth (%)

32%

LINK to benefit from AI

Huge potential - Early days

LINK's Xenioo chatbot integrated with AI

  • IBM Watson been integrated for more than 2 years
  • More recent integration with ChatGPT still in concept phase

AI potentials for LINK medium term

  • Improved management of globally increasing fraud / spam activity
    • New AI tools to supplement current ML methods in detection and prevention
  • Better use of internal resources and optimization of MNO / OTT suppliers
    • AI supporting LINK's software development
    • Reduced COGS by improving current ML routing rules with AI

Full commercial adoption of AI still early

  • Control and data protection concerns
  • Uncertainty regarding regulatory framework

4

Interim Report Q2 2023

Strong gross profit growth

Strong gross profit growth of 15% in fixed currency

US reported growth of NOK 21 million or 52% organic in fixed currency

  • Continued momentum for messaging solutions
    • Driven by high contract backlog for both new and existing customers
  • No critical events messaging in Q2 23 as expected for seasonal business

Improvement in Europe NOK 18 million or 7% organic growth in fixed currency

  • Growth support from weak retail volumes in Europe in Q2 last year
  • Normalized comparables as covid effects out from figures
  • Contribution from higher contract backlog

Global Messaging growing at 38% organic in fixed currency

  • High activity on favorable routes
  • Scaling revenue and gross profit on new contracts

5

Interim Report Q2 2023

Organic gross profit development NOKm

Quarterly US revenue contribution USDm

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Disclaimer

Link Mobility Group Holding ASA published this content on 16 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2023 04:20:04 UTC.