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July – September 2021
Net sales increased by 122 percent to SEK 3,938m (1,778). Organic growth in local currency was 41 percent.
Gross profit increased by 86 percent to SEK 896m (481). Organic growth in local currency was 20 percent.
Adjusted EBITDA1 increased by 27 percent to SEK 298m (234).
Adjusted EBIT2 amounted to SEK 270m (219).
Profit after tax for the quarter amounted to SEK 266m (96).
Basic earnings per share were SEK 0.37 (0.16) and diluted earnings per share were SEK 0.36 (0.16).
January – September 2021
Net sales increased by 118 percent to SEK 10,970m (5,024). Organic growth in local currency was 42 percent.
Gross profit increased by 86 percent to SEK 2,585m (1,388). Organic growth in local currency was 25 percent.
Adjusted EBITDA1 increased by 39 percent to SEK 851m (611).
Adjusted EBIT2 amounted to SEK 768m (565).
Profit after tax for the period amounted to SEK 454m (230).
Basic earnings per share were SEK 0.63 (0.38) and diluted earnings per share were SEK 0.62 (0.38).
“As in the previous quarters, we have continued to see broad-based growth across different customer segments and geographies.” Oscar Werner, CEO
Significant events during the quarter
Sinch announced on 24 August the appointment of Christina Raaschou as Chief Human Resources Officer and member of the executive management team, as of 10 January 2022. Raaschou was most recently with H&M Group and has also had senior HR roles with Unilever and Ericsson.
Sinch informed the market on 22 September that it had entered into a binding agreement to acquire MessengerPeople, a leading German supplier of B2C conversational messaging software. The agreed consideration is EUR 48m on a cash and debt-free basis. Sinch will pay EUR 33.6m in cash and EUR 14.4m in the form of new shares in Sinch.
Sinch announced on 30 September that it had entered into a definitive agreement to acquire Pathwire, a leading cloud-based email delivery platform, including its Mailgun, Mailjet and Email on Acid products for developers and marketers. Sinch will pay the sellers cash consideration of USD 925m and 51 million new shares in Sinch.
It was also announced on 30 September that Sinch had executed a directed issue of 40.1 million shares that raised total subscription proceeds of approximately SEK 6.6 billion (about USD 750m). The issue proceeds will be used to partially finance the acquisition of Pathwire. The subscription price was SEK 164.60 per share.
On the same date, 30 September, Sinch issued a notice of an extraordinary general meeting of shareholders in Sinch AB to be held 26 October 2021.
Significant events after the end of the quarter
The extraordinary general meeting held 26 October resolved in favor of all board proposals.
Sinch has received all required regulatory approvals for the acquisition of MessageMedia, and will proceed with closing procedures in the near future.
Sinch completed the acquisition of MessengerPeople on 1 November. Sinch paid EUR 33.6m in cash and EUR 14.4m in the form of 835,677 new shares in Sinch. The 835,677 shares were issued on the same day at a subscription price of SEK 171.78 per share.
1 EBITDA before depreciation, amortization and impairments excluding items affecting comparability and adjustments. See Note 2 for a specification of items affecting comparability and adjustments.
2 EBIT excluding items affecting comparability, adjustments and depreciation and amortization of acquisition-related assets that do not give rise to cash flows. See Note 5 for a specification of depreciation and amortization.
Invitation to phone conference
Sinch will present the interim report in a webcast conference call on 2 November at 14:00 CET. Watch the presentation at http://investors.sinch.com/webcast or call and register a couple of minutes in advance.
Sweden: +46 8 506 92 180
United Kingdom: +44 2071 928 000
United States: +1 631 510 7495
Access code: 698 7713
For further information, please contact
Chief Strategy Officer & Head of Investor Relations
Mobile: +46 722 45 50 55
Investor Relations Director
Mobile: +46 721 43 34 59
Sinch brings businesses and people closer with tools enabling personal engagement. Its leading cloud communications platform lets businesses reach every mobile phone on the planet, in seconds or less, through mobile messaging, voice and video. Sinch is a trusted software provider to mobile operators, and its platform powers business-critical communications for many of the world’s largest companies. 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 40 countries. Shares are traded at NASDAQ Stockholm: XSTO:SINCH. Visit us at sinch.com.
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 by the contact person above on 2 November 2021 at 07:30 CET.
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.