Loyal Solutions announces second half year results for 1/1-30/06 2023

Danish SaaS company Loyal Solutions delivers 51% revenue growth in the second half year (1/1-30/6 2023)  and a 70% growth in ARR ( annual recurring revenue) for the year.
 

CEO Peter Kisbye comments:

“In the period 1 July 2022 – 30 June 2023 (“the Period”) the Company delivered the following results:

• Growth in annual recurring revenue (ARR) of 70%
• Top line revenue growth of 47%, reaching 98% of adjusted budget
• Top line revenue growth of 51% in the second half of the year (1/1-30/6 2023)
• EBITDA of TDKK -14,359 vs adjusted budget EBITDA of TDKK -20,300
• Result of TDKK -17,325 vs adjusted budget of TDKK -22,635
• Cash receipts of TDKK 29,374 vs last year TDKK 17,657, an increase of 66%

We view our growth rates in annual recurring revenue (ARR) and revenue as solid and as a testament to our business model. While maintaining these solid growth rates, the Company has continued to focus on profitability by optimizing resources spent, and can report a better than budgeted EBITDA (+29%) and result (+23%)

During the Period the Company signed long-term agreements with several large international brands. These solutions were implemented late in the Period, and some are yet to be implemented, therefore these did not have any substantial financial effect in the Period.  Programs were implemented for or signed with among others:

• Emirates Skywards, the loyalty program of Emirates, one of the worlds most recognized brands
• Qatar Airways Privilege Club, a loyalty program of the world’s largest airline group
• Marriott Bonvoy, a world leading hospitality loyalty program
• NAF (Norwegian Auto Association), building on the already running successful program of FDM, the Danish Auto Association
• Visa Germany, launching innovative solution for Visa credit card holder to earn extra rewards globally
  
  During the Period our pipeline grew at the expected rate and while lead times remain long, our expanding list of large global reference clients (*) generates additional interest in Loyal Solutions as a company. Our cooperation with Visa for the Visa VMLS product has also progressed as expected.The Company`s LoyalTfacts® platform and SaaS based card-linking-technology enables these market leading loyalty programs to go to the next level in customer engagement.
  
   (*)
• Accor All, a leading global hospitality loyalty program across 30+ brands and over 5.000 hotels
• SAS, Scandinavian Airlines, the top performing loyalty program across the Nordics
• Etihad Guest, the award-winning loyalty program of Etihad Airways
• Darna by Aldar, loyalty program across 20 malls
• Qatar Airways Privilege Club, a market leading global loyalty program
• Air Canada Aeroplan, the leading loyalty program in Canada
• Marriott Bonvoy, the world’s largest hospitality loyalty program
• Emirates Skywards, the loyalty program of Emirates

Our current clients’ implemented programs continued to perform well during the Period, further validating the resilience of our SaaS business model, and proving the inherent long term growth potential in SaaS card-linked loyalty programs. While at different stages of maturity, all current programs achieved a better-than-expected growth rate year-on-year, and with several clients now expanding to other countries, we have a firm client base on which to build future growth.

Our most important resource, our employees, continued to do an outstanding job. Despite being quite busy, we have maintained our focus on work-life balance, inclusivity and on providing flexible working hours and locations. Our IT hub in South Africa has been an integral part in delivering solutions and our IT organization benefits from having operations in both Denmark and South Africa.

We truly believe in putting employees first and that “team is everything”, so a big thank you to everyone at Loyal Solutions for the results delivered. “

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HIGHLIGHTS FOR THE SECOND HALF YEAR 1/1-30/6 2023

Business and operational highlights

During the second half of financial year 2022/23 the Company reached several milestones including:

• ARR (annual recurring revenue) growth of 70% for the year
• Revenue growth of 47% for the year, 51% for the second half year
• Launched program for Emirates Skywards in May 2023
• Launched program for Qatar Airways in May 2023
• Signed a global long-term agreement with Marriott Bonvoy, one of the largest global loyalty programs
• Signed long term agreement with NAF, Norway’s auto association and the largest loyalty program in Norway
• The Company`s LoyalTfacts® technology won yet another reward together with Etihad Guest
• Continued building our pipeline on direct sales as well as via our partnership with Visa
• Added BankAxept (Norway) to the list of payment networks LoyalTfacts® has pre-installed
• Work started on integrating LoyalTfacts® to eftpos, a leading payments processor in Australia and New Zealand
• Delivered a range of platform upgrades, making program management even easier for our clients
• Passed our annual PCI DSS Level 1 audit

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Conference call to present second half of financial year 2022/23

Loyal Solutions will present its second half year report 2022/23 (1/1-30/6 2023)  results in a brief live webcast through MS Teams on 24 August 2023, at 10.00-10.30 CET. Please join and ask questions directly to CEO, Peter Kisbye and CFO, Pernille Normand Farup-Hansen, at this investor event.

To participate, please join the conference call on this link..

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The audited annual report for The Period will be made public on our website under “reports and presentations” on the 21 September 2023 at 08.00 CET. The Annual General Meeting will be held on 4 October 2023 at 13.00 CET at the Company headquarters in Copenhagen.

This financial report constitutes inside information that Loyal Solutions A/S is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was sent for publication, through the agency of the contact persons set out below, at the time stated by the Company’s news distributor, Cision, at the publication of this press release.


 

For further information about the Company, please contact
Peter Kisbye, CEO
Phone: +45 21 28 69 60
E-mail: pki@loyalsolutions.eu
Website: www.loyalsolutions.eu

Certified Adviser
Svensk Kapitalmarknadsgranskning AB
Phone: +46 (0) 11 32 30 732
E-mail: ca@skmg.se

Loyal Solutions was set up in 2009 with the sole purpose of disrupting the loyalty industry with new technology, new transparent concepts and a 100% focus on the end customer.
Loyal Solutions has quickly become a leading global provider of loyalty concepts, solutions, and technology for selected industries for select clients. Our proprietary technology and global private cloud solutions are state of the art and market leading. We also offer clients full outsourcing options, making implementation of a full program seamless and easy.
We have our HQ in Copenhagen and an IT hub in Johannesburg. We are currently represented in Stockholm, Dubai, San Francisco and Melbourne.