Link Mobility Group (LINK) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with revenue of NOK 1,816 million, up 17% year-over-year in fixed currency, driven by high contract backlog and demand for CPaaS and OTT channels.

• Adjusted EBITDA reached NOK 180 million, up 16% year-over-year, reflecting a scalable business model and prudent opex growth.

• Closed acquisition of EZ4U in Portugal, expanding market share and adding 1,400 customer accounts.

• Signed 802 new and expanding agreements in Q2, with strong momentum in advanced CPaaS and OTT solutions.

• Buy-back programs for shares and bonds advanced, maintaining a robust financial position.

Financial highlights

• Q2 2024 revenue: NOK 1,816 million (up from NOK 1,557 million in Q2 2023), up 17% year-over-year in fixed currency.

• Gross profit: NOK 379 million (up from NOK 337 million), up 12% organically, with gross margin at 20.9%.

• Adjusted EBITDA: NOK 180 million (up from NOK 155 million), margin stable at 9.9%.

• Net income from continuing operations: NOK 62 million (vs. loss of NOK 16 million in Q2 2023).

• Net cash flow from operating activities: NOK 87 million, impacted by working capital build; cash reserves at NOK 2,519 million.

Outlook and guidance

• 2024 guidance remains unchanged, expecting high single-digit gross profit growth and strong free cash flow growth.

• If Q3 and Q4 meet expectations, full-year results will exceed guidance.

• Anticipates accelerated RCS adoption as Apple enables support, boosting future growth.

• Ongoing M&A pipeline with focus on bolt-on acquisitions and further scale in Europe.

• Refinancing of EUR bond maturing December 2025 planned, targeting net debt/EBITDA of 2–2.5x.