#Sweden #Stockholm #Sinch AB #RCS Messaging Leader #Customer Communications Cloud

Sinch AB Reports Year-End Results for 2024

On February 13, 2025, Sinch AB announced its financial results for the fourth quarter and full year of 2024, marking both growth in net sales and significant financial challenges. For the period ending December 31, 2024, net sales grew by 3% to SEK 7,729 million, an increase from SEK 7,532 million in 2023. However, the company faced a notable decline in EBITDA, which slumped by 63% to SEK 307 million due to a one-time charge of SEK 700 million related to historical tax exposure.

Quarter Highlights

The last quarter of 2024 saw gross profit rise by 2% to SEK 2,582 million, up from SEK 2,526 million in the prior year. Despite this, the bottom line was negatively impacted, resulting in a loss after tax of SEK -324 million compared to a profit of SEK 145 million in Q4 2023. The company’s basic and diluted earnings per share were both at SEK -0.38, down from SEK 0.17.

Cash flow from operating activities was robust at SEK 905 million, a significant increase from SEK 727 million in the same quarter of the previous year.

Full-Year Overview

Throughout 2024, Sinch reported a slight drop in net sales to SEK 28,712 million from SEK 28,745 million. Gross profit, however, increased by 2% to SEK 9,685 million, showing strong operational efficiency.

The company’s EBITDA for the year recorded a 13% decline to SEK 2,665 million, heavily affected by the aforementioned one-time tax charge.

Sinch's adjusted EBITDA fell minimally by 1% to SEK 3,586 million, reflecting a resilient operational performance despite external challenges.

Loss after tax for the full year soared to SEK -6,413 million, predominantly impacted by a substantial goodwill impairment of SEK 6,000 million and the SEK 700 million tax provision. Basic earnings per share mirrored this struggle, dropping to SEK -7.60, down from SEK 0.05 in 2023.

Strategic Moves and Future Outlook

Throughout the year, several strategic initiatives were implemented to streamline operations and refocus the company’s objectives. Notably, Sinch held its first Capital Markets Day on November 20, 2024, showcasing future financial and sustainability targets.

Sinch solidified its position in the market, being recognized as an RCS Business Messaging Leader by Juniper Research, reaching a notable milestone of 1 billion sent RCS messages in 2024.

In a bid to enhance financial stability, the company completed an early redemption of an outstanding bond amounting to SEK 673 million. Additionally, Sinch secured a new USD 100 million loan from Danske Bank to refinance existing debts.

After the reporting period, Sinch announced a change in leadership with the appointment of Jonas Dahlberg as the new CFO starting April 2025. This strategic move follows the departure of current CFO Roshan Saldanha, who will also leave the company that month.

The company has proactively reassessed its historical non-income based taxes, resulting in the recent tax provision. Sinch maintains an optimistic outlook on its business model, bolstered by its strong customer base and commitment to innovative communication solutions.

Conclusion

Despite the financial hurdles and leadership changes, Sinch AB is adjusting its operational strategies and financial frameworks to navigate the complexities of the modern telecommunications landscape. The proactive steps taken by Sinch are aimed at fortifying its market position while ensuring the growth of its customer communication services in the coming years.