Link Mobility Group (LINK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was stable at NOK 1.66–1.7 billion, with a strategic shift toward profitability and strong cash flow from operations at NOK 200–201 million.

• Gross profit grew 13% year-over-year to NOK 357 million, with 9% organic growth in fixed currency, driven by improved revenue mix and traffic optimization.

• Adjusted EBITDA increased 13% year-over-year to NOK 166 million, with margin expansion and improved gross margin.

• Three acquisitions closed in 2024 (EZ4U, Net Real Solutions, Reach Interactive), expanding presence in Spain, Portugal, the UK, and Latam, with a robust M&A pipeline.

• Successful refinancing of EUR 125 million bond and completion of a 17 million share buyback program, enhancing financial flexibility.

Financial highlights

• Group revenue for the last 12 months exceeded NOK 6.9 billion, with a revenue CAGR of 20%.

• Gross profit up 13% year-over-year; organic gross profit up 9% in fixed FX.

• Adjusted EBITDA margin increased to 10.0–10.1% in Q3 2024, with gross profit to adjusted EBITDA conversion at 47%.

• Net income for Q3 2024 was NOK 20.7–21 million, with basic EPS of NOK 0.07.

• Free cash flow for Q3 was NOK 178–200 million, and NOK 400–433 million on an LTM basis.

Outlook and guidance

• Continued high single-digit gross profit growth in Europe and adjusted EBITDA growth outpacing gross profit due to scalability.

• Ambition to add 10% of adjusted EBITDA annually through bolt-on acquisitions.

• RCS adoption expected to accelerate with Apple’s rollout, supporting future growth.

• M&A pipeline remains active, with multiple targets in due diligence.