LINK Mobility (LINK) reports revenue growth of 12% to NOK 1,177 million in the
second quarter of 2022. Organic revenue growth in fixed currency was 4%, whilst
underlying organic growth was 11% when adjusting for high Q2 21 comparables.
Continued organic growth is supported by a stable performance in customer
acquisitions and very low customer churn. Gross profit increased 18% to NOK 317
million. Organic gross profit was affected by the lower revenue growth and mix
effects. Adjusted EBITDA grew 8% to NOK 129 million. Organic adjusted EBITDA was
negatively impacted by OPEX growth related to commercial investments. OPEX
reduction initiatives have been implemented to improve profitability.  LINK
revises its 2022 forward-looking statement to an organic revenue growth range of
8-12% (14-17%) due to slower than expected growth in H1 22 and increased
macroeconomic uncertainty.

Increased macroeconomic uncertainty impacts the digital messaging industry
differently depending on use case. Retail volumes, often linked to mobile
marketing use cases, are exposed to a decline while notifications use cases,
used for more essential communication, are expected to sustain growth. For
efficient customer care solutions, which reduce costs and increase customer
satisfaction, new growth opportunities are expected. Overall, LINK is well
positioned for continued growth, albeit at lower than historical levels as
customers adjust to the new economic climate. Longer-term, LINK sees large
upselling potential for its more advanced products as market adoption rates
catch up with the rapid technological advances over recent years. 

In the current environment, LINK will enhance its focus on current growth and
cash generation. Stable performance in customer acquisitions and low churn
continue to fuel future growth. However, longer lead times to scale revenue from
new advanced CPaaS solutions and a previous focus on building market adoption
have reduced the execution of near-term growth opportunities. LINK will now
prioritize mature products and selected CPaaS solutions with proven demand and
reduce OPEX and CAPEX to ensure continued strong FCF generation. Consolidation
of acquired assets will further extract costs and contribute to revenue
synergies. 

Reported revenue increased 12% to NOK 1,177 million in the quarter compared to
the same quarter last year. Organic revenue growth of 4% in fixed currency,
whilst underlying organic growth was 11% when adjusting for high Q2 21
comparables. Q2 last year benefitted from the reopening of shops and pent-up
demand as lockdowns ended and high Covid related traffic in certain markets.
Softer market conditions in Q2 22 reflecting increased macroeconomic uncertainty
also contributed to lower organic growth in all markets YoY. 

Gross profit grew 18% to NOK 317 million and the gross margin increased to 26.9%
(25.4%). Organic gross profit growth in fixed currency was negative 1%.
Underlying organic growth was positive 5% when adjusted for high Q2 21
comparables.

Adjusted EBITDA increased 8% to NOK 129 million. Organic adjusted EBITDA in
fixed currency declined due to high comparables and higher OPEX related to
go-to-market (GTM) commercial investments to build market share for new advanced
CPaaS products. 


"We are pleased to retain underlying organic revenue growth above 10% in a
challenging macro environment. To support a continuation, sales resources are
now prioritizing mature products and CPaaS solutions in demand. To ensure
adjusted EBITDA growth and strong cash generation, we have also initiated OPEX
and CAPEX reduction initiatives", says Thomas Berge, Interim CEO of LINK. 
 

The quarterly results will be presented in an audio webcast at 10:00 CET today
by Thomas Berge, Interim CEO and Morten Edvardsen, Interim 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/20220816_1/

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 47,700 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