Sinch announces goodwill impairment and preliminary results related to the third quarter 2024
Stockholm, Sweden – 25 October 2024 – Sinch AB (publ), which is pioneering the way the world communicates through its Customer Communications Cloud, announces the outcome of its goodwill impairment test and discloses preliminary results for the third quarter 2024.
Goodwill impairment
Sinch regularly assesses goodwill and has conducted an impairment test when finalizing results for the third quarter. The impairment test has resulted in a total impairment charge of SEK 6,000 million.
The charge is attributable to the product category Applications and primarily relates to MessageMedia, a company which was acquired by Sinch in 2021. This impairment charge will impact Sinch’s third quarter income statement but does not affect cash flow.
Results
Sinch also discloses the following preliminary and unaudited results of the third quarter:
|
SEKm
|
Q3 |
Q3 |
Jan-Sep |
Jan-Sep |
|
|
|
2024 |
2023 |
2024 |
2023 |
R12M |
2023 |
|
|
Net sales |
7,150 |
7,265 |
20,983 |
21,213 |
28,515 |
28,745 |
|
Gross profit |
2,406 |
2,433 |
7,103 |
7,015 |
9,630 |
9,542 |
|
Gross margin |
34% |
33% |
34% |
33% |
34% |
33% |
|
EBITDA |
799 |
848 |
2,359 |
2,256 |
3,177 |
3,074 |
|
EBITDA margin |
11% |
12% |
11% |
11% |
11% |
11% |
|
Adjusted EBITDA |
923 |
943 |
2,584 |
2,642 |
3,579 |
3,637 |
|
Adjusted EBITDA margin |
13% |
13% |
12% |
12% |
13% |
13% |
The preliminary organic gross profit growth of the quarter is around 1 percent.
Third quarter report
Sinch is currently in the silent period preceding the third quarter report. The full report will, as previously announced, be disclosed on November 6, 07.30 CET. A webcast will take place 14.00 CET. See investors.sinch.com for more information.
For more information, please contact
Ola Elmeland
Investor Relations Director
Mobile: +46 721 43 34 59
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 60 countries. Shares are traded at NASDAQ Stockholm: XSTO:SINCH. Visit us at sinch.com.
This information is information that Sinch AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact person set out above, at 17:55 CEST, 25 October, 2024.