Sinch AB: Interim report, January - September 2024

STOCKHOLM, Nov. 6, 2024 /PRNewswire/ -- Executing on our efficiency agenda 

July – September 2024

• Net sales decreased by 2 percent to SEK 7,150m (7,265).

• Gross profit decreased by 1 percent to SEK 2,406m (2,433).

• EBITDA decreased by 6 percent to SEK 799m (848).

• Adjusted EBITDA decreased by 2 percent to SEK 923m (943).

• An impairment of goodwill of SEK 6,000m had negative impact on quarterly results and Sinch is reporting a loss after tax of SEK -6,095m (46).

• Basic earnings per share were SEK -7.22 (0.05) and diluted earnings per share were SEK -7.22 (0.05).

• Cash flow from operating activities amounted to SEK 437m (862).

January – September 2024

• Net sales decreased by 1 percent to SEK 20,983m (21,213).

• Gross profit grew by 1 percent to SEK 7,103m (7,015).

• EBITDA rose by 5 percent to SEK 2,359m (2,256).

• Adjusted EBITDA decreased by 2 percent to SEK 2,584m (2,642).

• The loss after tax for the period was SEK -6,089m (-102).

• Basic earnings per share were SEK -7.22 (-0.12) and diluted earnings per share were SEK -7.22 (-0.12).

• Cash flow from operating activities amounted to SEK 2,039m (1,061).

Significant events during the quarter

• Sinch updated it's leverage policy to: Net debt over time shall be below 2.5 times Adjusted EBITDA (measured on a rolling twelve-months basis).

• Sinch issued a bond of SEK 500m and initiated a call for early redemption of the outstanding bond 2019/2024.

• Impairment testing of goodwill resulted in a total impairment of SEK 6,000m. The charge is attributable to the product category Applications and primarily relates to MessageMedia. 

Significant events earlier this year

• The new operating model, organization and management team became operational on 1 January 2024.

• Sinch was recognized as a 2024 Gartner Magic Quadrant Leader for CPaaS.

Significant events after the end of the quarter

• CFO Roshan Saldanha will be leaving Sinch for a similar position in another industry. He will continue in his current role until a successor has taken over or until March 2025 at the latest. The process of finding a replacement has begun.

• Sinch informed about goodwill impairment and preliminary results for the third quarter.

Invitation to webcast and phone conference
Sinch will present the interim report in a webcast and phone conference on Wednesday, 6 November 2024 at 14:00 CET. Watch the presentation at investors.sinch.com/webcast.

To participate via phone conference, register using the following link: https://conference.financialhearings.com/teleconference/?id=50048793.
After you register, you will be given a phone number and conference ID to log into the conference.

For additional information, please contact:
Ola Elmeland, Investor Relations
+46 72 143 34 59
[email protected] 

Thomas Heath, Chief Strategy Officer and Head of Investor Relations
+46 72 245 50 55
[email protected] 

Roshan Saldanha, Chief Financial Officer
+46 73 660 24 19
[email protected] 

About Sinch

Sinch is pioneering the way the world communicates. More than 150,000 businesses – including many of the world's largest tech companies – rely on Sinch's Customer Communications Cloud to improve customer experience through mobile messaging, voice and email. Sinch has been profitable and fast-growing since it was founded in 2008. It is headquartered in Stockholm, Sweden, with shares traded at NASDAQ Stockholm: XSTO:SINCH. Learn more at sinch.com.

Note: Sinch AB (publ), is required to publish the information in this interim report pursuant to the EU Market Abuse Regulation. The information was released for publication by the contact person above on 6 November 2024 at 07:30 CET.

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.

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https://news.cision.com/sinch-ab/r/interim-report--january---september-2024,c4061796

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SOURCE Sinch AB