Sinch AB (publ): Interim Report January – June 2021

April – June 2021

• Net sales increased by 127 percent to SEK 3,682 million (1,622). Organic growth in local currency was 48 percent.
  
• Gross profit increased by 89 percent to SEK 869 million (460). Organic growth in local currency was 32 percent.
  
• Adjusted EBITDA1 increased by 42 percent to SEK 284 million (200).
  
• Adjusted EBIT2 amounted to SEK 254 million (185).
  
• Profit after tax for the quarter amounted to SEK 47 million (37).
  
• Diluted earnings per share were SEK 0.07 (0.06).

January – June 2021

• Net sales increased by 117 percent to SEK 7,032 million (3,246). Organic growth in local currency was 43 percent.
  
• Gross profit increased by 86 percent to SEK 1,689 million (907). Organic growth in local currency was 28 percent.
  
• Adjusted EBITDA1 increased by 47 percent to SEK 552 million (377).
  
• Adjusted EBIT2 amounted to SEK 498 million (346).
  
• Profit after tax for the period amounted to SEK 188 million (134).
  
• Diluted earnings per share were SEK 0.28 (0.22). 

“We now see broad-based growth, across different customer segments and geographies, in addition to the growth from our largest customers.” Oscar Werner, CEO

Significant events during the quarter

• It was announced on 4 May that leading American market intelligence firm IDC had recognized Sinch as a global leader in the Communications-Platform-as-a-Service (CPaaS) market.
  
• The annual general meeting of shareholders in Sinch AB (publ) resolved on 18 May in favor of a 10-for-1 stock split. The first day of trading in the company’s shares after the stock split was 17 June 2021. 3
  
• A directed issue of 7,232,077 shares was executed on 24 May at a subscription price of SEK 1,300 per share (corresponding to SEK 130 per share after the stock split on 17 June). The directed issue was heavily oversubscribed and the company raised about SEK 9,400 million before issue costs.
  
• Sinch entered into a binding agreement on 9 June to acquire MessageMedia, a leading vendor of mobile messaging services to small and medium-sized businesses in the US, Australia, New Zealand and Europe. The consideration totals USD 1.3 billion on a cash and debt-free basis. Sinch will pay USD 1.1 billion in cash and the remainder in 1,128,487 new shares in Sinch. When the deal was announced, this corresponded to total consideration of SEK 10,745 million. Execution of the transaction is subject to customary terms and conditions and the approval of competition authorities in several countries. The transaction is expected to close in the second half of 2021.
  
• Sinch presented a change to the company’s financial leverage policy on 9 June. The new target is that net debt over time shall be below 3.5 times adjusted EBITDA (measured on a rolling twelve month basis). Before the change, the target was that net debt over time shall be below 2.5 times adjusted EBITDA.
  
• Covid-19 has had a negative impact on the smaller Voice and Video segment, but the pandemic has also led to increased volumes in Messaging. On current trends, Covid-19 is not expected to have any material, further impact compared to the second quarter 2021.

¹ EBITDA before depreciation, amortization and impairments excluding items affecting comparability. See page 3 for a specification of items affecting comparability.
² EBIT excluding items affecting comparability and depreciation and amortization of acquisition-related assets. See Note 5 for a specification of depreciation and amortization.
³ The key figures ”Adjusted EBITDA per diluted share” and ”Profit for the period per diluted share” have been restated for comparative periods.

Invitation to phone conference
Sinch will present the interim report in a webcasted conference call on 16 July at 14:00 CET. Watch the presentation at investors.sinch.com/webcast or call and register a couple of minutes in advance.

Sweden:                +46 (0) 8 566 42 651
United Kingdom:    +44 333 30 00 804
United States:        +1 631 913 1422
Access code:          965 268 01#

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 the Sinch 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 40 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 and the Swedish Securities Market Act. The information was released for publication on 16 July 2021 at 07:30 CEST.
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. This report has not been subject to review by the company’s independent auditor.

Attachment

• Sinch_2021Q2_ENG

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.