Loyal Solutions (LOYAL) H1 24/25 earnings summary

Executive summary

• Revenue for H1 2024/25 was TDKK 18,234, down 10% year-over-year due to prior year one-off revenue, but in line with budget.

• EBITDA was TDKK -3,901, an improvement over budget but lower than last year (TDKK -2,358).

• Net loss for the period was TDKK -5,665, close to budget and wider than last year (TDKK -3,649).

• Annual recurring revenue (ARR) grew 13% to TDKK 34,276, below expectations due to delayed agreements.

• Cash receipts increased 4% year-over-year to TDKK 19,310, but below budget.

Financial highlights

• Revenue: TDKK 18,234 (vs. TDKK 20,118 last year, -10% YoY).

• EBITDA: TDKK -3,901 (vs. TDKK -2,358 last year; budget TDKK -4,097).

• Net loss: TDKK -5,665 (vs. TDKK -3,649 last year; budget TDKK -5,706).

• Net income per share: DKK -0.60 (vs. DKK -0.30 last year).

• Cash and cash equivalents: TDKK 2,923 at period end.

Outlook and guidance

• Full-year 2024/25 targets: Revenue TDKK 40,045, ARR TDKK 44,376, EBITDA TDKK -8,142.

• Revenue for H2 expected to be impacted by continued long lead times in client contracting.

• Existing clients expected to maintain strong growth, providing a solid baseline.

• Market for payment-linked loyalty expected to grow 7-9% in the coming year.