Market Update: Checkin.com Group AB
Checkin.com Group (STO:CHECK) today communicates a market update based on the assessment that the company deems it highly unlikely to achieve the communicated financial ambition for the full year of 2024. The company also provides preliminary figures for the third quarter of 2024.
In the reporting for the second quarter of 2024, Checkin.com Group stated that a relatively immediate volume increase from the company's largest customer was necessary for the company to have the possibility of reaching the financial ambition for the full year of 2024. In light of how the business has developed during the third quarter of this year, Checkin.com Group considers it highly unlikely to achieve the financial ambition of exceeding 80% on an annual basis for the measure of revenue growth per share combined with EBITDA margin, for 2024. The company maintains that the ambition to exceed 80% on an annual basis should remain in place for the full year of 2025.
Checkin.com Group's preliminary figures for the third quarter of 2024 show net revenue of 18.6 MSEK, EBITDA of 4.3 MSEK corresponding to an EBITDA margin of 23%.
Checkin.com Group continues to experience low volumes, particularly within the Travel & Leisure vertical. During the quarter, the company's discussions with additional airlines and other potential customers in Travel & Leisure continued.
At the same time, the company saw increasing momentum in iGaming during the quarter, driven in part by the agreement with Stake.com, one of the world's fastest-growing iGaming groups.
Within the Financial Services vertical, there is uncertainty regarding the rollout with the large Swedish Fintech customer, which was previously communicated as expected to have a strong financial effect towards the end of 2024.
Among other customers, beyond the three aforementioned verticals, the company saw negative developments during the third quarter of 2024.
"It is extremely unfortunate to confirm that we are not at all at the level we want to be as a company, and that 2024 is largely a lost year for us in terms of growth. We have very high ambitions with Checkin.com, and our financial goal remains firm for 2025. We are convinced that technologies such as biometrics and facial recognition will become crucial for smoothly and securely determining who sits on the other side of the screen in the future. Even though 2024 has not turned out as we wanted, I believe that the year and the investments we have made, especially in technology and marketing, will have a decisive significance for us. We have no doubt that the strategy we are working with is the best for both the company and all shareholders in the long term. The ongoing discussions with several large customers are also developing well, even though we do not see any breakthrough in our volumes yet. Besides Travel and Financial Services, we have hopes for increased growth also within the iGaming segment, driven among other things by the upcoming regulation in Brazil, although the effects from that will likely take a few quarters. In summary, we are far from satisfied, but at the same time we look forward to an exciting 2025, as we aim to regain our position as a strong growth company," comments Christian Karlsson, CEO of Checkin.com Group.
For further information, please contact:
Jonas Köpniwsky, Head of Communications Checkin.com Group, press@checkin.com
This information is information that Checkin.com Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out above, at 08.33 CEST on 17 October 2024.
Certified Adviser
Checkin.com Group’s Certified Adviser is Carnegie Investment Bank AB (publ).
About Checkin.com Group:
Checkin.com Group creates shareholder value through capital efficient growth achieved by strong organic growth and strategic acquisitions. The Group’s advanced technologies and innovations offers a unique end to end solution that reshapes how end users checkin with products and brands online. The comprehensive framework gathers multiple hyper specialized technologies that covers every aspect of an end user’s checkin experience.
The company has its headquarters in Stockholm, Sweden, but operates and recruits globally to attract world-leading talent across the globe.
Checkin.com Group’s share is since 2021 listed on Nasdaq First North Growth Market under the trading symbol "CHECK”.
For more information about the company visit: https://group.checkin.com/investors/