TextMagic AS 2024 6 months consolidated unaudited interim report

 

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
investor@textmagic.biz
https://investor.textmagic.com/

    

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		    

 
Items 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