Sinch jumps 33% after Q3 cash flow paints 'net positive picture'

Sinch AB (publ)

02/11/2022 10:47

** Shares in Sinch  SINCH.ST  are up 33.5% after the Swedish
cloud communications specialist reported stronger year-on-year
cash flow and divisional performance for Q3  urn:newsml:reuters.com:*:nFWN31X5LW
    ** The company reported cash flow from operations of SEK 727
mln ($66 mln), up from a negative SEK 491 in Q3 2021, boosted by
working capital of SEK 211 mln
    ** This leaves Sinch with net debt below the Q2 level, SEB
notes
    ** The broker says that cash flow and divisional
performance, which had not been disclosed with Sinch prelim Q3
results in October, reveal "a net positive picture"
    ** It sees a relief with regards to the balance sheet, adds
speculation of an equity raise should now be muted
    ** ABG Sundal Collier analyst Daniel Thorsson flags that the
improved cash flow and lower leverage compared to Q2 "reduces
the risk for a rights issue significantly"
    ** Including today's rise, the stock has dropped by 70.66%
YTD
    ** The company's shares are trading at SEK 33.4 per share 
($1= 11.0131 Swedish crowns)
 (Reporting by Louise Breusch Rasmussen)
 ((Louisebreusch.rasmussen@thomsonreuters.com))