Sinch AB (publ): Interim Report January – June 2019
Interim Report January – June 2019
April – June 2019
- Net sales increased by 18 percent to SEK 1,176.7 million (997.4). Organic growth in local currency was 15 percent.
- Gross profit increased by 29 percent to SEK 321.1 million (248.6). Organic growth in local currency was 26 percent.
- Adjusted EBITDA2 increased by 17 percent to SEK 114.2 million (97.4).
- Adjusted EBIT3 amounted to SEK 104.1 million (91.2).
- Profit after tax for the quarter amounted to SEK 53.3 million (29.0).
- Diluted earnings per share were SEK 0.98 (0.54).
January – June 2019
- Net sales increased by 23 percent to SEK 2,278.4 million (1,856.0). Organic growth in local currency was 16 percent1.
- Gross profit increased by 36 percent to SEK 610.6 million (448.6). Organic growth in local currency was 24 percent1.
- Adjusted EBITDA2 increased by 39 percent to SEK 226.4 million (162.3).
- Adjusted EBIT3 amounted to SEK 206.3 million (149.9).
- Profit after tax for the period amounted to SEK 111.1 million (38.3).
- Diluted earnings per share amounted to SEK 2.06 (0.71).
“Although one-way business texting is now moving from early adopters to early majority, most businesses have yet to capitalize on the tremendous opportunities that rich media messaging and interactive conversations now bring about.” – Oscar Werner, CEO
Significant events during the quarter
- A partnership between Sinch and WIT Software to accelerate the global use of next-generation messaging services through Rich Communication Services (RCS) was announced on 5 April. Sinch will be using WIT Software's technology as part of its RCS-as-a-Service offering to mobile operators that require an efficient and scalable solution to offer RCS to their subscribers and enterprise customers.
- On 11 April, Sinch announced changes to the company’s management team aimed at closer collaboration between the teams that address operator customers and enterprise customers. The Sinch management team now consists of: Chief Executive Officer Oscar Werner, Chief Operating Officer Anders Olin, Chief Financial Officer Roshan Saldanha, Chief Human Resources Officer Eva Lessing, Chief Technology Officer Jonas Lindeborg, Chief Marketing Officer Jonathan Bean, Chief Strategy Officer and Head of Investor Relations Thomas Heath, Chief Evangelist and Co-Founder Robert Gerstmann, Head of Corporate Development and Co-Founder Björn Zethraeus and Head of Business Development and Co-Founder Johan Hedberg.
- The name change from CLX Communications AB (publ) to Sinch AB (publ) was registered at the Swedish Companies Registration Office on 20 June.
1 Organic growth in local currency in comparable units. Unwire and Vehicle, two acquisitions that did not close until the end of March 2018, are included in the entire comparison period of January – June 2018 in order to calculate growth in comparable units.
2 EBITDA excluding items affecting comparability. See page 3 for a specification of items affecting comparability.
3 EBIT excluding items affecting comparability and amortization of acquisition-related assets. See Note 4 for a specification of depreciation and amortization.
Invitation to phone conference
Sinch will present the interim report in a phone conference on 19 July at 9:00 CET. To participate in the phone conference, please call any of the following numbers and state the code 7278264.
Sweden: +46 (0) 8 506 921 85
UK: +44 (0) 203 009 5710
USA: +1 917 720 0178
Register here to watch the presentation via Webcast: investors.sinch.com/webcast
For additional information, please contact:
Thomas Heath, Chief Strategy Officer and Head of Investor Relations
+46 72 245 50 55
Roshan Saldanha, Chief Financial Officer
+46 73 660 24 19
Sinch brings businesses and people closer with tools enabling personal engagement. Its leading cloud communications platform lets businesses reach every mobile phone on the planet, in seconds or less, through mobile messaging, voice and video. Sinch is a trusted software provider to mobile operators, and its platform powers business-critical communications for many of the world’s largest companies. Sinch has been profitable and fast-growing since its foundation in 2008. It is headquartered in Stockholm, Sweden, and has local presence in more than 30 countries. Shares are traded at NASDAQ Stockholm: XSTO:SINCH. Visit us 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 submitted for publication on 19 July 2019 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. This report has not been subject to review by the company’s independent auditor.