April – June 2022
- Net sales increased by 80 percent to SEK 6,615m (3,682).
- Gross profit increased by 123 percent to SEK 1,937m (869). A reassessment of reserves for accrued traffic costs in Messaging affects gross profit negatively by SEK 162m.
- EBITDA rose by 247 percent to SEK 528m (152).
- Adjusted EBITDA1 increased by 77 percent to SEK 503m (284).
- The loss after tax for the quarter was SEK -40m (47).
- Basic earnings per share were SEK -0.05 (0.07) and diluted earnings per share were SEK -0.05 (0.07).
- Cash flow from operating activities amounted to SEK 668m (-240).
January – June 2022
- Net sales increased by 87 percent to SEK 13,164m (7,032).
- Gross profit increased by 139 percent to SEK 4,033m (1,689). A reassessment of reserves for accrued traffic costs in Messaging affects gross profit negatively by SEK 162m.
- EBITDA rose by 242 percent to SEK 1,176m (344).
- Adjusted EBITDA1 increased by 129 percent to SEK 1,264m (552).
- Profit after tax for the period was SEK 48m (188).
- Basic earnings per share were SEK 0.06 (0.28) and diluted earnings per share were SEK 0.06 (0.28).
- Cash flow from operating activities amounted to SEK 809m (347).
“To ensure that Sinch meets its financial target to grow Adjusted EBITDA per share by 20 percent per year, Sinch has initiated a cost reduction program aimed at gross savings of 10 percent gross in Messaging and central functions with full effect from Q3 2023.” – Johan Hedberg, Interim CEO
Significant events during the quarter
- The board of directors decided on 28 April to execute the previously communicated issue of 10,803,010 new shares in Sinch to the sellers of MessageMedia.
- The board of directors decided on 26 May to execute the previously communicated non-cash issue of 25.5 million shares to the sellers of Pathwire.
- Sinch announced on 9 June that the company had become a Microsoft Teams Operator Connect Partner, which means that the company’s solutions can be used to connect outbound calls from Microsoft Teams.
Significant events after the end of the quarter
- Sinch announced on 11 July that the reassessment of reserves for accrued traffic costs in Messaging will reduce gross profit, EBITDA and Adjusted EBITDA by SEK 162m. Links to press releases and webcasts are available at investors.sinch.com.
- Sinch published updated historical segment reporting on 18 July.
- On July 20, Sinch announced that CEO Oscar Werner steps down from his position. The board of directors has appointed Johan Hedberg as interim CEO and will now initiate the search for a new CEO. Johan Hedberg is one of the company’s founders.
- Due to the short-selling report published on 11 July and other questions received, Sinch issued a fact sheet on 21 July 2022, which is available on investors.sinch.com.
- As announced in this report, Sinch is initiating a cost reduction program in Messaging and central functions. The program seeks to achieve gross savings of about 10 percent, corresponding to about SEK 300m on an annual basis. The program is expected to have full effect from Q3 2023. See page 7.
Invitation to webcast and phone conference
Sinch will present the interim report in a webcast and phone conference on Thursday, 21 July at 14:00 CEST. Watch the presentation at investors.sinch.com/webcast or call and register a couple of minutes in advance.
Sweden: +46 856 642 651
United Kingdom: +44 333 300 0804
USA: +1 631 913 1422
Access code: 4619 8709#
1Adjusted EBITDA is reported to clarify performance in underlying operations. See Note 2.
For further information, please contact
Ola Elmeland
Investor Relations
Mobile: +46 721 43 34 59
E-mail: investors@sinch.com
Thomas Heath
Chief Strategy Officer & Head of Investor Realtions
Mobile: +46 722 45 50 55
E-mail: investors@sinch.com
Roshan Saldanha
Chief Financial Officer
Mobile: +46 73 660 24 19
E-mail: investors@sinch.com
About Sinch
Sinch’s leading cloud communications platform lets businesses reach everyone on the planet, in seconds or less, through mobile messaging, email, voice and video. More than 150,000 businesses, including many of the world’s largest companies and mobile operators, use Sinch’s advanced technology platform to engage with their customers. Sinch has been profitable and fast-growing since its foundation in 2008. It is headquartered in Stockholm, Sweden, and has local presence in more than 50 countries. Shares are traded at NASDAQ Stockholm: XSTO:SINCH. Visit us at sinch.com.
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 by the contact person above on 21 July 2022 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.
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