January – March 2021
- Net sales increased by 106 percent to SEK 3,349.9 million (1,624.2). Organic growth in local currency was 38 percent.
- Gross profit increased by 84 percent to SEK 820.0 million (446.7). Organic growth in local currency was 24 percent.
- Adjusted EBITDA1 increased by 30 percent to SEK 240.3 million (184.3). Excluding currency effects and costs for share-based incentive programs, the increase would have been 52 percent.
- Adjusted EBIT2 amounted to SEK 215.0 million (168.8).
- Profit after tax for the quarter amounted to SEK 140.8 million (96.4).
- Diluted earnings per share were SEK 2.12 (1.74).
”We deliver at scale and handled 40 billion mobile messages in Q1 alone. We reap the benefits of a global platform but recognise the importance of local presence.” – Oscar Werner, VD
Significant events during the quarter
- Sinch closed the acquisition of Wavy on 1 February for total cash consideration of BRL 355 million and 1,534,582 new shares in Sinch. The acquisition was financed with a combination of existing cash reserves and debt facilities. Wavy is a leading supplier of messaging services in Latin America with a leading position in next-generation conversational messaging. Wavy operates in Brazil, Mexico, Colombia, Peru, Chile, Argentina and Paraguay.
- Sinch’s products within Business Support Systems (BSS) for mobile operators were sold on 1 February 2021 to eRate, a Norway-based telecommunications specialist focused on solutions in billing and rating.
- On 17 February 2021, Sinch announced that it had closed an agreement to acquire Inteliquent, the largest independent voice communications provider in the US, for total cash consideration of USD 1,140 million on a cash and debt-free basis. The acquisition establishes Sinch as the leader in voice connectivity for both enterprises and telecom carriers in the US. Inteliquent powers voice communications for the leading communication service providers and enterprises in North America. The company operates a fully redundant, geodiverse, carrier-grade Tier 1 network that is directly connected to telecom carriers that cover 94 percent of the US population.
- Covid-19 is still having negative impact on the small Voice and Video segment. The overall financial impact on the Sinch Group remains modest, however, because volumes in Messaging have increased in parallel.
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 4 for a specification of depreciation and amortization.
Invitation to conference call
Sinch will present the interim report in a webcasted conference call on 28 April at 14:00 CEST. 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: 892 718 64#
For additional information, please contact:
Thomas Heath, Chief Strategy Officer and Head of Investor Relations
+46 72 245 50 55
Roshan Saldanha, Chief Financial Officer
+46 73 660 24 19
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. The information was released for publication on 28 April 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.