April –
- Net sales increased by 127 percent to
SEK 3,682 million (1,622). Organic growth in local currency was 48 percent. - Gross profit increased by 89 percent to
SEK 869 million (460). Organic growth in local currency was 32 percent. - Adjusted EBITDA1 increased by 42 percent to
SEK 284 million (200). - Adjusted EBIT2 amounted to
SEK 254 million (185). - Profit after tax for the quarter amounted to
SEK 47 million (37). - Diluted earnings per share were
SEK 0.07 (0.06).
January –
- Net sales increased by 117 percent to
SEK 7,032 million (3,246). Organic growth in local currency was 43 percent. - Gross profit increased by 86 percent to
SEK 1,689 million (907). Organic growth in local currency was 28 percent. - Adjusted EBITDA1 increased by 47 percent to
SEK 552 million (377). - Adjusted EBIT2 amounted to
SEK 498 million (346). - Profit after tax for the period amounted to
SEK 188 million (134). - Diluted earnings per share were
SEK 0.28 (0.22).
“We now see broad-based growth, across different customer segments and geographies, in addition to the growth from our largest customers.” Oscar Werner, CEO
Significant events during the quarter
- It was announced on 4 May that leading American market intelligence firm IDC had recognized Sinch as a global leader in the Communications-Platform-as-a-Service (CPaaS) market.
- The annual general meeting of shareholders in
Sinch AB (publ) resolved on 18 May in favor of a 10-for-1 stock split. The first day of trading in the company’s shares after the stock split was17 June 2021 . 3 - A directed issue of 7,232,077 shares was executed on 24 May at a subscription price of
SEK 1,300 per share (corresponding toSEK 130 per share after the stock split on 17 June). The directed issue was heavily oversubscribed and the company raised aboutSEK 9,400 million before issue costs. - Sinch entered into a binding agreement on 9 June to acquire MessageMedia, a leading vendor of mobile messaging services to small and medium-sized businesses in the US,
Australia ,New Zealand andEurope . The consideration totalsUSD 1.3 billion on a cash and debt-free basis. Sinch will payUSD 1.1 billion in cash and the remainder in 1,128,487 new shares in Sinch. When the deal was announced, this corresponded to total consideration ofSEK 10,745 million . Execution of the transaction is subject to customary terms and conditions and the approval of competition authorities in several countries. The transaction is expected to close in the second half of 2021. - Sinch presented a change to the company’s financial leverage policy on 9 June. The new target is that net debt over time shall be below 3.5 times adjusted EBITDA (measured on a rolling twelve month basis). Before the change, the target was that net debt over time shall be below 2.5 times adjusted EBITDA.
- Covid-19 has had a negative impact on the smaller Voice and Video segment, but the pandemic has also led to increased volumes in Messaging. On current trends, Covid-19 is not expected to have any material, further impact compared to the second quarter 2021.
1 EBITDA before depreciation, amortization and impairments excluding items affecting comparability. See page 3 for a specification of items affecting comparability.
2 EBIT excluding items affecting comparability and depreciation and amortization of acquisition-related assets. See Note 5 for a specification of depreciation and amortization.
3 The key figures ”Adjusted EBITDA per diluted share” and ”Profit for the period per diluted share” have been restated for comparative periods.
Invitation to phone conference
Sinch will present the interim report in a webcasted conference call on 16 July at
Sweden: +46 (0) 8 566 42 651
United Kingdom: +44 333 30 00 804
United States: +1 631 913 1422
Access code: 965 268 01#
For additional information, please contact:
+46 72 245 50 55
thomas.heath@sinch.com
+46 73 660 24 19
roshan.saldanha@sinch.com
About Sinch
Sinch develops digital tools that enable personal interaction between enterprises and individuals. Powered by the Sinch cloud communications platform, enterprises can reach every mobile phone on the planet - within a second or two - via messaging, voice calls and video. Several of the biggest enterprises in the world are using Sinch’s advanced technology platform to communicate with their customers and Sinch is an established software supplier to mobile operators worldwide. Sinch has delivered profitable growth since it was founded in 2008. The Group is headquartered in
Note:
This report is published in Swedish and English. In case of any differences between the English version and the Swedish original text, the Swedish version shall apply. This report has not been subject to review by the company’s independent auditor.
Attachment
- Sinch_2021Q2_ENG
Source:
2021 GlobeNewswire, Inc., source