Link Mobility Group (LINK) Q4 2024 earnings summary

Executive summary

• Achieved 10% gross profit growth and 13% adjusted EBITDA growth for 2024, outperforming peers and concluding a strong year with high market share gains in Europe.

• Q4 2024 delivered 8% organic gross profit growth and 12% organic adjusted EBITDA growth, with gross profit of NOK 436 million and adjusted EBITDA of NOK 213 million, reflecting strong profitability and margin expansion.

• Revenue for Q4 2024 was NOK 1,848 million, up 3% year-over-year, but organic revenue declined 2% due to a strategic shift from low-margin to high-margin products and termination of low-value traffic.

• Closed three acquisitions in 2024 (EZ4U, NRS, Reach Interactive), strengthening presence in Europe and LATAM, and reinitiated the M&A pipeline with 11 actionable targets identified.

• Divested US subsidiary Message Broadcast LLC, reported as discontinued operations, with a NOK 128.8 million loss in Q4.

Financial highlights

• Q4 2024 revenue: NOK 1,848 million, up 3% year-over-year; full-year revenue: NOK 6,994 million.

• Q4 2024 gross profit: NOK 436 million, up 13% reported and 8% organically; full-year gross profit: NOK 1,528 million.

• Adjusted EBITDA for Q4 2024: NOK 213 million, up 18% reported and 12% organically; full-year adjusted EBITDA: NOK 718 million.

• Free cash flow after CapEx and interest paid was close to NOK 400 million for the quarter; total cash and cash equivalents at quarter-end were NOK 2,479 million.

• Net interest-bearing debt at year-end was NOK 994 million, with a leverage ratio of 1.3x LTM pro forma adjusted EBITDA.

Outlook and guidance

• Expects high single-digit gross profit growth and higher adjusted EBITDA growth in 2025, supported by a scalable business model and continued M&A.

• Inorganic growth target of 10% adjusted EBITDA through bolt-on acquisitions, maintaining net debt/adjusted EBITDA within 2.0-2.5x.

• Q1 2025 operating momentum is in line with guidance; net retention rate expected to normalize after Q2 2025.