Overview
Norway's CPaaS provider's preliminary Q4 gross profit grew 6%, including M&A
Organic gross profit declined 4% yr/yr due to Global Messaging issues
Outlook
Link expects gradual improvement in Global Messaging segment over the next quarters
Strong CPaaS momentum and contract wins to support future growth
Result Drivers
GLOBAL MESSAGING SHORTFALL - Decline in gross profit due to client losing end-customer and reduced share of wallet with other clients, impacting Global Messaging segment
ACCOUNTING ADJUSTMENTS - Non-recurring year-end accounting adjustments negatively impacted Enterprise segment by NOK 7 million
ENTERPRISE GROWTH CHALLENGES - Lower-than-expected retail campaign volumes and churn affected Enterprise growth
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Gross Profit
NOK 461 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Link Mobility Group Holding ASA is NOK45.00, about 34.1% above its January 30 closing price of NOK33.55
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nObiZnXbva
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
