Thinc (THINC) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 increased by 19% year-over-year to 76,879 tkr, driven by strong performance in Nowa Kommunikation and Context Media.

• EBITDA for the quarter rose to 2,199 tkr (1,112 tkr), with the margin improving to 2.9% from 1.7% year-over-year.

• Despite revenue growth, gross profit declined by 4% and gross margin fell to 24.2% due to price pressure on large campaigns.

• Result after financial items improved to -53 tkr from -1,169 tkr in Q2 2023; net result per share was 0 kr (previously -0.07 kr).

• Investments in new offices, product development, and acquisitions have established a foundation for further growth.

Financial highlights

• H1 2024 net sales grew 11% year-over-year to 153,312 tkr; gross profit decreased 4% to 37,813 tkr.

• H1 EBITDA dropped to 3,099 tkr (5,136 tkr), with margin down to 2.0% (3.8%).

• Cash flow from operations in Q2 was 4,482 tkr (8,957 tkr); H1 cash flow was -1,228 tkr (5,448 tkr).

• Equity at June 30, 2024, was 42,279 tkr (49,358 tkr); cash and equivalents were 6,277 tkr (17,286 tkr).

• Dividend of 25 öre per share was paid in May 2024.

Outlook and guidance

• Management expects to deliver on the growth plan for the remainder of 2024 despite a weaker market in H1.

• Market growth and media investments rebounded strongly in June–July, aligning with internal expectations.

• 2024 is a year of consolidation and margin focus, with new acquisitions and collaborations expected to drive future profitability.

• Long-term targets include >20% annual growth (including acquisitions), EBITDA margin of at least 7% by 2028, and annual dividend of at least 30% of operating cash flow.