LINK Mobility (LINK) reports revenue growth of 24% to NOK 1,174 million in the
first quarter of 2022. Organic revenue growth in fixed currency was 15% and
within the medium-term revenue growth target. Gross profit increased 30% to NOK
322 million and the margin expanded 1.3 percentage points YoY to 27.4%. Adjusted
EBITDA grew 30% to NOK 142 million whilst the margin improved YoY to 12.1%
(11.5%). Reflecting a seasonally low contribution from the high margin U.S.
business, the adjusted EBITDA margin was lower than the two previous quarters.
LINK reiterates its forward-looking statement including a medium-term revenue
growth expectation in the 14-17% range. 

LINK experiences increased demand for advanced CPaaS solutions and has made
significant go-to-market (GTM) investments during the last two years. The GTM
strategy includes roll-out of self-sign-up (SSU) platforms, further expansion of
the partner network and a continued focus on LINK's unique locally present
salesforce and customer service in local languages. A2P messaging is being
transformed to conversational CPaaS communication and LINK has obtained a strong
position in rapidly expanding segments through the acquisitions of chatbot
solution Xenioo and the telecoms provider Tismi. The new advanced automized
conversations and voice solutions offer attractive cross-sell opportunities to
European and U.S. customers.  

Revenue was reported at NOK 1,174 million, which translates into an organic
revenue growth in fixed currency of 15% YoY. Increased Global messaging revenue
positively impacted growth rates on total revenue. For the Enterprise segment,
most markets have rebounded from lockdown induced restrictions. However, in
France, whilst improving compared to the two previous quarters, retail activity
remains below pre Covid volumes. Poland experienced a lower growth momentum in
this quarter due to the war in Ukraine dampening economic activity. Growth in
the Nordics was negatively impacted by an unusual churn of a sizeable, but low
margin simple use case client in the first quarter.

Gross profit grew 30% to NOK 322 million with a gross margin at 27.4% (26.1%)
reflecting contribution from acquired entities. Organic gross profit growth in
fixed currency was 9%, lower than organic revenue growth due a higher share of
Global messaging volumes at lower margin. Organic gross margin in the Enterprise
segment declined by 0.8 percentage points YoY due to pass through cogs increases
at a constant contribution in Northern Europe, and different country/region mix
with more growth deriving from countries with lower profitability.

Reported adjusted EBITDA grew 30% YoY to NOK 142 million, whilst the adjusted
EBITDA margin improved 0.6 percentage points to 12.1% YoY. Organic adjusted
EBITDA grew 8% in fixed currency. 


"We are pleased to report stable organic growth in line with our targets. In the
quarter we experienced traction on our unique GTM strategy and saw increased
adoption of advanced messaging solutions. Our growing global customer base and
rich use case library ideally position LINK for accelerating demand from A2P
towards CPaaS", says Guillaume Van Gaver, CEO of LINK. 
 

The quarterly results will be presented in an audio webcast at 10:00 CET today
by Guillaume Van Gaver, CEO and Thomas Berge, CFO. 

The audio webcast targets investors, analysts and media. Attendees will be able
to post and ask questions directly in a Q&A session following the webcast.


To join the audio webcast and post questions, please go to 
https://channel.royalcast.com/landingpage/hegnarmedia/20220510_7/

The webcast is also available from LINK's investor relations pages 
https://linkmobility.com/investor-relations/ 


To ask questions directly in the Q&A session, please dial in

PIN Code for all countries: 799682

NO: +47 21956342
DK: +45 7876 8490
SE: +46-4-0682-0620
UK: +44 203-7696819
US: +1 646-787-0157


For further information, please contact 

Tom Rogn, VP Investor Relations
+47 94 85 56 59
tom.rogn@linkmobility.com


About LINK Mobility 

LINK is an award-winning, leading global provider of mobile messaging and
communications platform as a service (CPaaS) solutions for increased engagement.
The company serves enterprise, SME, and government customers. LINK offers a wide
range of innovative and scalable mobile solutions, creating valuable digital
convergence between businesses and customers, governments and citizens,
platforms and users. LINK has 47,300 customer accounts globally and exchanges 15
billion messages a year. LINK is listed on the Oslo Stock Exchange under the
ticker LINK. For more information about LINK, please see www.linkmobility.com
and follow LINK Mobility on LinkedIn

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act