TextMagic (MAGIC) H1 2024 earnings summary

Executive summary

• Revenue grew 15% year-over-year to €7.81M in H1 2024, with EBITDA up 19% to €3.15M and net profit rising 70% to €1.29M.

• Operating profit increased 28% to €1.14M, driven by improved ARPU and a focus on higher-value customers.

• The company is investing in expanding the Textmagic platform, launching new features and channels, and growing the Voog platform.

• A €5.02M equity distribution was approved, to be paid at the end of 2024.

Financial highlights

• Revenue: €7.81M (+15% YoY); EBITDA: €3.15M (+19% YoY); Net profit: €1.29M (+70% YoY); Operating profit: €1.14M (+28% YoY).

• EBITDA margin improved to 40.3% (H1 2023: 39.0%); Net profit margin rose to 16.5% (H1 2023: 11.2%).

• Cash and cash equivalents at period end: €4.23M, with €3.5M in term deposits.

• Cash flow from operating activities: €3.12M (H1 2023: €3.11M).

• Staff costs increased due to expanded development teams; 62% of personnel expenses capitalized.

Outlook and guidance

• 2024 revenue and EBITDA expected to grow by ~11%; net income from continuing operations forecast to decrease due to higher amortization.

• Full-year revenue guidance: €16.6M (+10.9% YoY); EBITDA: €6.9M (+10.8% YoY); operating profit: €2.1M (-18% YoY).

• €5.02M cash payout to shareholders planned for end of 2024.