Brief: Sinch Q2 Adjusted EBITDA Rises To SEK 503 Million

Sinch AB (publ)

21/07/2022 07:10

July 21 (Reuters) - Sinch AB (publ)  SINCH.ST :
    * QUARTERLY LOSS AFTER TAX -40 MILLION SEK
    * QUARTERLY DILUTED LOSS PER SHARE 0.05 SEK
    * QUARTERLY BASIC LOSS PER SHARE 0.05 SEK
    * Q2 NET SALES SEK 6,615 MILLION VERSUS SEK SEK 3,682
MILLION YEAR
AGO
    * Q2 GROSS PROFIT SEK  1,937 MILLION VERSUS SEK 869 MILLION
YEAR
AGO
    * Q2 ADJUSTED. EBITDA SEK 503 MILLION VERSUS SEK 284 MILLION
YEAR
AGO
    * BOARD OF DIRECTORS’ OVERALL ASSESSMENT IS THAT AFTER THE 
EXPANSION OF RECENT YEARS THE COMPANY IS NOW ENTERING A  NEW
PHASE IN WHICH WE NEED TO SHARPEN OUR FOCUS ON  PROFITABILITY
AND CASH FLOW.
    * RAPID GROWTH HAS MADE OUR  GLOBAL BUSINESS MORE COMPLEX,
AND WE
REQUIRE AN EFFECTIVE  GOVERNANCE MODEL WITH DELEGATED
RESPONSIBILITY IN OUR FIVE  BUSINESS UNITS
    * YESTERDAY THE BOARD THEREFORE ANNOUNCED THAT WE ARE 
INITIATING
THE RECRUITMENT OF A NEW CEO FOR SINCH
    * ONE OF THE FIRST STEPS IS TO INITIATE A COST REDUCTION
PROGRAM, 
WHERE THE TARGET IS GROSS SAVINGS OF ABOUT 10 PERCENT IN 
MESSAGING AND CENTRAL GROUP FUNCTIONS.
    * CORRESPONDS TO  APPROXIMATELY SEK 300M ANNUALLY AND THE
PROGRAM
IS  EXPECTED TO HAVE FULL EFFECT FROM THE THIRD QUARTER OF 2023
    * PERFORMANCE IN MESSAGING SEGMENT IS STILL LESS THAN 
SATISFACTORY
    * AFOREMENTIONED CHANGED ASSESSMENT  OF RESERVES, PRICE
ADJUSTMENTS APPLIED TO A MAJOR CUSTOMER  AND WEAK PERFORMANCE IN
BRAZIL IS CONSTRAINING GROSS PROFIT.
    * IN VOICE SEGMENT, WE HAVE A STRONG GROSS MARGIN AND 
EBITDA-MARGIN BUT A WEAKER GROWTH IN GROSS PROFIT.

Source text for Eikon:  ID:nGNE2M9gqc 
Further company coverage:  SINCH.ST 

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