Textmagic AS 2024 6 Months Consolidated Unaudited Interim Report

2024-08-13 01:16:36

(MENAFN- GlobeNewsWire - Nasdaq)

In the first half year of 2024, the TextMagic Group's operating profit increased by 28% to €1,139 thousand compared to the same period in 2023 (H1 2023: €887 thousand). The net profit amounted to €1,287 (H1 2023: €757 thousand). The Group's day-to-day operations will continue along the roadmap set at the end of 2023, with the main objective of developing and expanding the Textmagic platform and restoring the growth rate.

TextMagic Group has assessed the evolving regulatory environment, market trends, competitive landscape and customer needs in order to develop strategic growth plans. To achieve sustainable growth, we are committed to continued investment in software development, which is why we have expanded our product development teams.

As of June 30, 2024, the team consisted of 91 individuals (111 as of June 30, 2023), of whom 48 (27 as of June 30, 2023) were part of the Textmagic platform development team. The Voog.com platform development team comprises 6 members as of the end of June 2024 (3 as of June 30, 2023). In addition to this core team, the group also includes a marketing department, user support, a finance team, and management.

In today's competitive market, it is increasingly challenging to drive growth with SMS-only product offerings. To enhance the appeal of our Textmagic platform to new audiences, we have identified the need to extend the value proposition of the product in 2024.

In March 2024, a BYOC (Bring Your Own CPaaS) solution was launched for high-volume customers who prefer the convenience of the Textmagic platform but wish to remain with their current communications provider.

Textmagic platforms's communication channel functionality (Chat AI), checklists, as well as user and task management have been enhanced. Additional communication channels (Email, Messenger, Live Chat, WhatsApp) and functionalities (Tickets, Deals, CRM) are in development. The added functionalities, along with the projects under development will provide an opportunity to increase the value proposition and customer base of the product in the future.

Group unaudited key figures of 2024 6 months

	H1 2024	H1 2023	Change
Revenue	€7.81 M	€6.78 M	+15 %
EBITDA	€3.15 M	€2.64 M	+19 %
Operating profit	€1.14 M	€0.89 M	+28 %

Textmagic SMS platform's sales results

	H1 2024	H1 2023	Change
Unaudited revenue (thousand)	€7,490	€6,719	+11 %
Volume of SMS messages (thousand pcs)	128,365	136,409	-6 %
Active users*	23,499	32,611	-28 %
Average revenue per user (ARPU, 6 months)**	€319	€206	+55 %

* An active user is any unique paying customer who has used Textmagic SMS platform services during the reporting period.

**ARPU is calculated as Unaudited revenue / Active users.

Textmagic platform's revenue distribution is similar to last year, with minor variations across major regions. The US and Canadian markets collectively represent the majority of revenues at 65% (H1 2023: 67%). The UK market has grown to account for 24% (H1 2023: 22%). The Australian market has remained consistent at 6% of sales, while the European Union accounts for 3%. All other regions contribute the remaining 2% of sales in both periods.

TextMagic AS's consolidated unaudited interim report for the 6 months of 2024 is attached to the release in PDF format.

Additional information:
Getter Grünmann
TextMagic AS, CFO
...

CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS FOR 6 MONTHS OF 2024

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(in thousands of euros)	30.06.2024	31.12.2023	30.06.2023	31.12.2022
Non-current assets
Property, plant and equipment	102	105	172	191
Intangible assets and goodwill	32,963	32,854	54,496	51,944
Total non-current assets	33,065	32,959	54,668	52,135
Current assets
Trade and other receivables	90	24	24	1
Prepayments	200	231	157	130
Financial Investments	3,500	2,500	0	0
Cash and cash equivalents	4,229	3,900	5,608	9,145
Total current assets	8,019	6,655	5,789	9,276
TOTAL ASSETS	41,084	39,614	60,457	61,411
Liabilities
Current tax liabilities	411	232	196	102
Trade and other payables	882	791	875	988
Debts to shareholders	0	0	0	2,550
Contract liabilities	1,668	1,659	1,737	1,546
Other provisions	679	1,117	914	739
Total current liabilities	3,640	3,799	3,722	5,925
Total liabilities	3,640	3,799	3,722	5,925
Equity
Share capital	33,575	850	850	850
Share premium	141	51,242	51,242	51,242
Reserve capital	85	85	85	0
Other reserve	2,360	2,035	1,659	1,651
Foreign currency translation reserve	(13)	(21)	(21)	(41)
Retained earnings	1,296	(18,376)	2,920	1,784
Equity attributable to owners of the parent	37,444	35,815	56,735	55,486
Total equity	37,444	35,815	56,735	55,486
TOTAL EQUITY AND LIABILITIES	41,084	39,614	60,457	61,411

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(in thousands of euros)	01.01.2024- 30.06.2024	01.01.2023- 30.06.2023
Revenue	7,809	6,779
Other income	70	40
Goods, raw materials and services	(2,396)	(2,285)
Other operating expenses	(1,050)	(851)
Work performed by the entity and capitalized	2,083	1,084
Employee expenses	(3,346)	(1,992)
Depreciation, amortization and impairment of non-current assets	(2,010)	(1,757)
Other expenses	(21)	(131)
Operating profit (loss)	1,139	887
Discontinued Operations	0	(181)
Financial Income	152	56
Profit (loss) before tax	1,291	762
Income tax	(4)	(5)
Profit (loss) for the period	1,287	757
Other comprehensive income
I tems that are or may be reclassified subsequently to profit or loss
Foreign currency translation differences	8	20
Other comprehensive income for the period, net of tax	1,295	20
Total comprehensive income for the period	1,295	777

CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousand euros)	01.01.2024 - 30.06.2024	01.01.2023 – 30.06.2023
Cash flows from operating activities
Profit (loss) for the period - continuing operations	1,287	938
Adjustments for:
Depreciation and amortization	2,010	1,757
Financial Income	(152)	(56)
Other adjustments	169	211
Total adjustments	2,027	1,912
Changes in trade and other receivables	(66)	(25)
Changes in contract liabilities	9	(18)
Changes in prepayments	34	(27)
Changes in trade and other payables	(167)	325
Net cash from operating activities – continuing operations	3,124	3,105
Net cash from operating activities – discontinued operations	0	(413)
Net cash from operating activities	3,124	2,692

Cash flows from investing activities
Net cash flows from business combinations	0	(1,100)
Interest received	152	56
Fixed-term deposits	(1,000)	0
Acquisition of property, plant and equipment	(30)	(12)
Development expenditure	(1,925)	(783)
Net cash used in investing activities – continuing operations	(2,803)	(1,839)
Net cash used in investing activities – discontinued operations	0	(1,859)
Net cash used in investing activities	(2,803)	(3,698)

Cash flows from financing activities
Payouts to shareholders	0	(2,550)
Net cash from financing activities – continuing operations	0	(2,550)
Net cash from financing activities – discontinued operations	0	0
Net cash from financing activities	0	(2,550)

TOTAL CASH FLOWS	321	(3,556)
Cash and cash equivalents at the beginning	3,900	9,145
Effect of movements in exchange rates on cash held	8	19
Cash and cash equivalents at the end	4,229	5,608

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(in thousands of euros)	Total equity attributable to owners of TextMagic AS
Share Capital	Share premium	Reserve capital	Other reserve	Foreign currency translation reserve	Retained earnings	Total equity
Balance at December 31, 2022	850	51,242	0	1,651	(41)	1,784	55,486
Profit (loss) for the period	0	0	0	0	0	757	757
Other comprehensive income	0	0	0	0	20	0	20
Other changes in equity	0	0	85	8	0	379	472
Balance at June 30, 2023	850	51,242	85	1,659	(21)	2,920	56,735
Profit (loss) for the period	0	0	0	0	0	(21,414)	(21,414)
Other comprehensive income	0	0	0	0	0	0	0
Other changes in equity	0	0	0	376	0	118	494
Balance at December 31, 2023	850	51,242	85	2,035	(21)	(18,376)	35,815
Profit (loss) for the period	0	0	0	0	0	1,287	1,287
Other comprehensive income	0	0	0	0	8	0	8
Coverage of losses	0	(18,376)	0	0	0	18,376	0
Other changes in equity	32,725	(32,725)	0	325	0	9	334
Balance at June 30, 2024	33,575	141	85	2,360	(13)	1,296	37,444

Attachments

TextMagic AS_2024. aasta 6 kuu auditeerimata konsolideeritud vahearuanne
TextMagic AS_2024 6months consolidated unaudited interim report

MENAFN13082024004107003653ID1108547441

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