Earnings Are Out
- Net sales increased by 127 percent to SEK 3,682 million (1,622). Organic growth in local currency was 48 percent for the period from April to June 2021 (1SEK = 0.12USD)
- Gross profit increased by 89 percent to SEK 869 million (460). Organic growth in local currency was 32 percent
- Adjusted EBITDA increased by 42 percent to SEK 284 million (200)
- Profit after tax for the quarter amounted to SEK 47 million (37)
“We now see broad-based growth, across different customer segments and geographies, in addition to the growth from our largest customers.” Oscar Werner, CEO
- 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. The transaction is expected to close in the second half of 2021.
"In early June we announced an acquisition that opens a new avenue to growth and dramatically expands our addressable market. By agreeing to acquire MessageMedia, we will have a SaaS-platform that is purposefully tailored to meet the specific needs of small and medium-sized businesses, offering easy-to-use messaging products to some 60,000 customers." Oscar Werner, CEO
From The CEO
"Our Messaging segment continues to perform well with organic gross profit growth of 31 percent and overall gross profit growth of 76 percent. It is particularly encouraging to see broad-based growth, across different customer segments and geographies, in addition to the growth from our largest customers. These improvements follow targeted investments in product, sales and marketing that we will now replicate to improve growth in recently acquired businesses."
"Results also improved in our Operator business where we saw healthy organic growth, maintained cost control, and a significant contribution from the acquisition of SAP Digital Interconnect. We believe that our strong offering to mobile operators and deep competence in connectivity is a strategic asset that benefits the entire business and differentiates us from our competitors in the market for Communications Platform-as-a-Service (CPaaS)." Oscar Werner, CEO
- Sinch is fairly valued at 12 times sales after taking into account its growth rate and profitability
- The company is using its profits to take over competitors and boost its growth rate
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