October–December 2021
- Net sales increased by 74 percent to
SEK 5,207m (2,999). Organic growth in local currency was 29 percent. - Gross profit increased by 69 percent to
SEK 1,348m (796). Organic growth in local currency was 5 percent. - EBITDA increased by 84 percent to
SEK 330m (179). - Adjusted EBITDA1 increased by 25 percent to
SEK 471m (378). - Profit after tax for the quarter amounted to
SEK 427m (213). - Basic earnings per share were
SEK 0.57 (0.35) and diluted earnings per share wereSEK 0.56 (0.34).
January–December 2021
- Net sales increased by 102 percent to
SEK 16,177m (8,023). Organic growth in local currency was 37 percent. - Gross profit increased by 80 percent to
SEK 3,933m (2,183). Organic growth in local currency was 18 percent. - EBITDA increased by 16 percent to
SEK 831m (715). - Adjusted EBITDA1 increased by 34 percent to
SEK 1,322m (989). - Profit after tax for the period amounted to
SEK 881m (446). - Basic earnings per share were
SEK 1.26 (0.76) and diluted earnings per share wereSEK 1.23 (0.74).
“Acquisitions contributed strongly to our growth in the fourth quarter, where we achieved 74 percent growth in revenues and 69 percent growth in gross profit compared to the same period last year.” – Oscar Werner, CEO
Significant events during the quarter
- The extraordinary general meeting on 26 October resolved in favor of board proposals a new issues and a new incentive program.
- The acquisition of MessengerPeople closed on 1 November. Sinch paid the sellers
EUR 33.6m in cash andEUR 14.4m in the form of 835,677 new shares in Sinch. The 835,677 shares were issued on the same date at a subscription price ofSEK 171.78 per share. Calculated at the exchange rate in effect on the last day of the measurement period (15-28 October 2021 ) where EU/SEK was 9.969, the total consideration amounts toSEK 479m . - The acquisition of MessageMedia closed on 5 November. In conjunction, Sinch paid the sellers cash consideration in AUD equivalent to
USD 1.1 billion and issued 481,860 shares as a component of consideration atSEK 146.48 per share. The remaining 10,803,010 shares will be issued to the sellers of MessageMedia before 5 April. - Sinch executed a directed issue of 21 million shares on 1 December against total subscription proceeds of approximately
SEK 3.469 billion to partially finance the acquisition of Pathwire. The subscription price wasSEK 164.60 per share and the new issue constituted the second part of the directed share issue of approximately 40 million shares announced on30 September 2021 . - The acquisition of Pathwire closed on 7 December. At the close of the transaction, Sinch paid the sellers, which include funds managed by
Thoma Bravo andTurn/River Capital , cash consideration ofUSD 925m . Sinch will also issue a total of 51 million new shares in Sinch, which will be issued and delivered to the sellers in February andMay 2022 . - The acquisition of
Inteliquent closed on 9 December. Sinch paid a cash consideration ofUSD 1,140m on a cash and debt-free basis.
Significant events after the end of the quarter
- Sinch announced on 3 February that the company will be organized into five business units: Enterprise & Messaging, Voice, Developer & Email, Applications and SMB. In conjunction, changes were made to the Sinch management team, including the addition of
Inteliquent CEOEd O’Hara , Pathwire CEOWill Conway and MessageMedia CEOPaul Perrett . - On 10 February, Sinch announced that the board of directors, as communicated on
7 December 2021 , has resolved on an in-kind share issue of 25.5 million shares to the sellers of Pathwire. The remaining 25.5 million shares will be issued inMay 2022 .
1 Adjusted EBITDA is reported to clarify performance in underlying operations. See Note 2.
Invitation to webcast and phone conference
Sinch will present the interim report in a webcast conference on Thursday, 17 February at
Sweden:+46 8 506 92 180
United States:+1 631 510 7495
Access code: 958 7619
For additional information, please contact:
Ola Elmeland, Investor Relations
+46 72 143 34 59
investors@sinch.com
+46 72 245 50 55
investors@sinch.com
+46 73 660 24 19
investors@sinch.com
About Sinch
Sinch is a global leader in cloud communications and mobile customer engagement. 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
Note:
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.
Attachment
- Sinch_2021Q4_ENG
© OMX, source