Link Mobility Group (LINK) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was NOK 1.66–1.7 billion, stable to up 4% year-over-year, with a strategic focus on profitability over revenue growth and strong cash flow from operations at NOK 200–201 million.

• Gross profit grew 13% to NOK 357 million, with organic growth of 9% in fixed currency, driven by a higher share of Enterprise and improved traffic mix in Global Messaging.

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

• Three acquisitions closed in 2024 (EZ4U, NRS, Reach Interactive/Reach Data), expanding market share in Portugal, Spain, the UK, and into South America.

• Successfully refinanced EUR 125 million bond and completed a share buyback program, acquiring 17 million shares for NOK 352 million, enhancing financial flexibility.

Financial highlights

• Gross profit reached NOK 357 million, up 13% year-over-year, with organic growth of 9% in fixed currency.

• Adjusted EBITDA was NOK 166 million, up 13% year-over-year, with margin improvement to 10.0–10.1%.

• Free cash flow for the quarter was NOK 178–200 million, and over NOK 400 million on an LTM basis.

• Net interest-bearing debt stood at NOK 975 million, with leverage at 1.4x pro forma LTM adjusted EBITDA.

• Cash reserves totaled NOK 2.5 billion, supported by strong operational cash flow and proceeds from the U.S. divestment.

Outlook and guidance

• Expect continued high single-digit gross profit growth in Europe, with adjusted EBITDA growth outpacing gross profit due to scalability.

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

• M&A pipeline remains active, with 12 prioritized targets and four under due diligence.

• Leverage policy remains at 2.0–2.5x net debt to LTM pro forma adjusted EBITDA.

• Management remains optimistic for 2025, expecting similar performance to 2024.