Sinch AB (publ): Interim Report January – September 2019

Interim Report January – September 2019

July – September 2019

• Net sales increased by 24 percent to SEK 1,216.4 million (979.3). Organic growth in local currency was 20 percent.
• Gross profit increased by 37 percent to SEK 343.6 million (249.9). Organic growth in local currency was 33 percent.
• Adjusted EBITDA² increased by 55 percent to SEK 147.6 million (95.4).
• Adjusted EBIT³ amounted to SEK 131.5 million (90.8).
• Profit after tax for the quarter amounted to SEK 68.7 million (37.8).
• Diluted earnings per share were SEK 1.27 (0.71).

January – September 2019

• Net sales increased by 23 percent to SEK 3,494.9 million (2,835.3). Organic growth in local currency was 17 percent¹.
• Gross profit increased by 37 percent to SEK 954.2 million (698.5). Organic growth in local currency was 27 percent¹.
• Adjusted EBITDA² increased by 45 percent to SEK 374.0 million (257.7).
• Adjusted EBIT³ amounted to SEK 337.9 million (240.7).
• Profit after tax for the period amounted to SEK 179.8 million (76.1).
• Diluted earnings per share amounted to SEK 3.34 (1.42).

”We have built our cloud communications platform for scale with the world’s most demanding customers in mind. This quarter, we are seeing the results of these efforts” – Oscar Werner, CEO

Significant events after the quarter

• On 4 October, Sinch acquired 100 percent of the share capital in myElefant SAS. The company is based in France and has developed a cloud-based software platform for mobile customer engagement. myElefant has pioneered the use of mobile landing pages and is an early adopter of new messaging technologies such as RCS, Facebook Messenger and WhatsApp. The initial purchase consideration amounts to EUR 18.8 million (SEK 203.3 million). The purchase agreement provides for additional earnouts of maximum EUR 3 million based on gross profit growth. The acquisition was financed through Sinch’s available credit facilities.
• On 23 October, Sinch acquired 100 percent of the share capital in TWW do Brasil S.A. The company is the third largest messaging provider for enterprises in Brazil. TWW has more than 3,000 customers within the banking, retail and education sectors. The purchase consideration amounts to BRL 180.8 million (SEK 422.4 million) on a cash and debt free basis. The acquisition was financed through Sinch’s available credit facilities.

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 – September 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, which do not affect cash flow. 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 8 November at 09.00 CET. To participate in the phone conference, please call any of the following numbers and state the code 774 225 45#.

Sweden:                            +46 (0) 8 566 426 51
UK:                                     +44 (0) 333 300 08 04
US:                                      +1 631 913 14 22

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
thomas.heath@sinch.com

Roshan Saldanha, Chief Financial Officer
+46 73 660 24 19
roshan.saldanha@sinch.com

About Sinch

Sinch develops digital tools that enable personal interaction between enterprises and individuals. Powered by our cloud communications platform, enterprises can reach every mobile phone on the planet - within a second or two - via messaging, voice calls and video. Several of the biggest enterprises in the world are using Sinch’s advanced technology platform to communicate with their customers and Sinch is an established software supplier to mobile operators worldwide. Sinch has delivered profitable growth since it was founded in 2008. The Group is headquartered in Stockholm, Sweden, and has a presence in more than 30 other countries. The share is listed on Nasdaq Stockholm: XSTO: SINCH.

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 8 November 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.  

Attachment

• Sinch_2019Q3_ENG