Sinch AB: Interim report, January - September 2024

In This Article:

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.