Sinch AB: Year-end report, January-December 2024

STOCKHOLM, Feb. 13, 2025 /PRNewswire/ --

Focused on the path ahead

October – December 2024

• Net sales increased by 3 percent to SEK 7,729m (7,532).
• Gross profit increased by 2 percent to SEK 2,582m (2,526).
• EBITDA declined by 63 percent to SEK 307m (818) and was negatively affected by a one-time charge for historical tax exposure of SEK 700m.
• Adjusted EBITDA increased by 1 percent to SEK 1,003m (996).
• Loss after tax for the quarter amounted to SEK -324m (145) and was negatively affected by a one-time charge for historical tax exposure of SEK 700m.
• Basic earnings per share were SEK -0.38 (0.17) and diluted earnings per share were SEK -0.38 (0.17).
• Cash flow from operating activities amounted to SEK 905m (727).

January – December 2024

• Net sales decreased marginally to SEK 28,712m (28,745).
• Gross profit increased by 2 percent to SEK 9,685m (9,542).
• EBITDA declined by 13 percent to SEK 2,665m (3,074) and was negatively affected by a one-time charge for historical tax exposure of SEK 700m in Q4.
• Adjusted EBITDA decreased by 1 percent to SEK 3,586m (3,637).
• Sinch reported a loss after tax of SEK -6,413m (42), an outcome that was negatively affected by an impairment of goodwill of SEK 6,000m in Q3 and a one-time charge for historical tax exposure of SEK 700m in Q4.
• Basic earnings per share were SEK -7.60 (0.05) and diluted earnings per share were SEK -7.60 (0.05).
• Cash flow from operating activities amounted to SEK 2,944m (1,788).

Significant events during the quarter

• Sinch announced new financial and sustainability targets. See page 7.
• Sinch held its first Capital Markets Day on 20 November. Materials from the day are available on Sinch's IR website.
• Juniper Research named Sinch an RCS Business Messaging Leader and Sinch reached 1bn sent RCS messages in 2024.
• Sinch completed the early redemption of the outstanding 2019/2024 bond of SEK 673m.
• Sinch announced that CFO Roshan Saldanha will be leaving Sinch in March 2025 for a similar position in another industry.

Significant events earlier this year

• Sinch's new operating model and organization 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

• Sinch has appointed Jonas Dahlberg as new Chief Financial Officer. Jonas Dahlberg has a background from Transcom, Sweco and McKinsey and will start no later than 1 April 2025.
• Additionally, Thomas Heath, Sinch's Chief Strategy Officer, has decided to step down from his position from 1 April 2025.
• Sinch announced a partnership around network APIs with Aduna, a JV between Ericsson and leading telecom operators.
• Sinch has secured a new 2-year USD 100m loan from Danske Bank, with proceeds used to refinance existing loans.
• Sinch announced that the company has reassessed its position for historical non-income based taxes. Consequently, the company has recorded a one-time provision of SEK 700m during the fourth quarter since it is considered probable that a liability existed as per 31 December, 2024.

Invitation to webcast and phone conference

Sinch will present the interim report in a webcast and phone conference on Thursday, 13 February 2025 at 14:00 CET. Watch the presentation at investors.sinch.com/webcast.

To participate via phone conference, register using the following link: https://conference.inderes.com/teleconference/?id=5008092.

After you register, you will be given a phone number and conference ID to log into the conference.

For additional information, please contact:
Ola Elmeland, Investor Relations
+46 72 143 34 59
investors@sinch.com

Thomas Heath, Chief Strategy Officer and Head of Investor Relations
+46 72 245 50 55
investors@sinch.com

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

About Sinch

Sinch is pioneering the way the world communicates. More than 175,000 businesses – including many of the world's largest tech companies – rely on Sinch's Customer Communications Cloud to improve customer experience through mobile messaging, voice and email. Sinch has been profitable and fast-growing since it was founded in 2008. It is headquartered in Stockholm, Sweden, with shares traded on NASDAQ Stockholm: XSTO: SINCH. Read more at sinch.com.

Note: Sinch AB (publ) is required to publish the information in this report pursuant to the EU Market Abuse Regulation and the Swedish Market Security Act. The information was released for publication by the contact person above on 13 February 2025 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. The report has not been subject to review by the company's independent auditors.

This information was brought to you by Cision http://news.cision.com.

https://news.cision.com/sinch-ab/r/year-end-report--january-december-2024,c4104852

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