Interim financial report Third quarter 2024 LINK Mobility Group Holding ASA

5 November 2024

linkmobility.com

Highlights third quarter 2024

Revenue NOK 1 658 million and stable organic development in fixed currency
- Reported Enterprise revenue NOK 1 239 million, organic growth in fixed currency of 8%
Gross profit NOK 357 million, organic growth in fixed currency of 9%
Adjusted EBITDA NOK 166 million, organic growth in fixed currency of 10%
Strong cash flow from operations of NOK 200 million
Executing on M&A and disciplined capital deployment
- M&A pipeline progressing with three acquisitions closed and 4 targets in DD stage
- Early October the existing bond was partly refinanced, and share buy-back program concluded

Customer accounts Net retention rate in fixed currency

LINK Mobility Holding Group ASA

Q3 2024 - Growth in line with expectations

LINK Mobility (LINK) reported gross profit and adjusted EBITDA at NOK 357 million and NOK 166 million respectively, with organic growth in fixed currency at 9% and 10%. LINK continues to execute on the inorganic growth strategy by closing the acquisition of Net Real Solutions in Spain and Reach Interactive in the UK. Commercially third quarter was strong with a 16% growth in total closed contract gross profit value and 51% for advanced CPaaS solutions contracts. The buy-back program for own shares continued through the third quarter and was concluded mid-October with a total of 17 million shares acquired. Early October LINK refinanced parts of the existing bond loan by issuing a new EUR 125 million bond maturing December 2029. The strong cash generation in the quarter and the solid financial position underlines the foundation for further organic and inorganic growth.

Revenue growth in the quarter was impacted by proactive termination of low margin traffic in the Global Messaging segment which led to reported total revenues growing 4% and was stable yoy in fixed currency. Enterprise revenue growth was 8% in stable currency. The termination of low margin traffic and refocus to improved profitability resulted in a 34% gross profit growth in Global Messaging.

Gross profit growth for the first nine months of the year was 11% while the scalable business model have resulted in adjusted EBITDA growth of 15% in the same period and in the high end of expectations.

Total volume growth was 6%, while volume growth in the enterprise segment was 9% and in line with 8% revenue growth in stable currency. Due to the revenue decline in Global Messaging, total net retention was reported at a lower level of 95% while contribution from new clients was in line with historical levels supported by a strong backlog of new contracts signed over the last quarters.

Gross profit grew 13% to NOK 357 million in the third quarter with growth in stable currency of 9% supported by organic gross profit growth of 6% in the enterprise segment and 34% in the Global messaging segment. The somewhat lower enterprise segment growth QoQ was impacted by isolated churn from bankruptcy and disputed operator price increase in Western Europe bridging the gap to high single digit growth in the quarter. The strong growth in the Global Messaging segment was driven by improved margin following the termination of traffic which led to a positive development in client mix.

The overall gross margin improved YoY impacted by lower share of Global Messaging revenues and the improved margin in this segment. Enterprise margin remained stable at the historical 26% level but was somewhat negatively impacted by the disputed operator price increase in the quarter. Underlying customer margins were stable.

Reported adjusted EBITDA increased 13% to NOK 166 million in the third quarter, with organic growth at 10% in fixed currency. Adjusted EBITDA margin increased YoY mainly from improvement in gross margin related to improved mix between high and low margin revenue.

LINK's recurring and growing business is driven by more than 50,000 loyal customers continuing to increase their usage. The industry continues to observe increased adoption rates for digital messaging and traction on higher margin CPaaS software solutions and OTT channels like RCS and What's App The recent support confirmed in selected markets for RCS Business Messaging on Apple handsets is expected to drive further demand for advanced messaging solutions across the LINK footprint.

The strong financial position enables LINK to continue its proven track record of inorganic growth with more than 35 acquisitions completed in Europe during the last decade.

In the third quarter, LINK acquired the company Net Real Solutions (NRS) in Spain, strengthening the market position in Spain as well as gaining access to the Latam markets through its presence in Colombia and Mexico. Late October, LINK closed the acquisition of Reach Data in the UK, further scaling the UK business. The acquisitions are in line with LINKs disciplined M&A strategy and was closed at EV/Cash EBITDA multiples in the historical range of between 6-7x.

There is substantial scope for further accretive inorganic EBITDA growth through multiple arbitrage transactions in a still highly fragmented industry demonstrated by the three acquisitions closed as of October this year. Smaller bolt-on's in existing markets are a priority to realize further scale, whilst the pipeline also includes several level-up opportunities in both Europe and beyond. The prioritized pipeline has been replenished with additional targets and consists of 12 targets, whereof 4 are in due diligence stage and total pipeline value of approx. EUR 40 million cash EBITDA.

Total reported messaging volumes increased by 6% in the third quarter and higher than revenue growth in fixed FX impacted by lower price per message in the Global Messaging segment due to destination mix towards destinations with lower price per message.

LINK Mobility Holding Group ASA

SMS One-way messaging (mill messages) Other messaging (mill messages)

LINK well positioned for value generation in 2024 and beyond

LINK has a transparent and highly cash generative European business with a large and diverse customer base. The business is supported by a very low customer churn and a high and growing contract backlog. Beyond its recurring nature, LINK sees a significant upsell and new sale potential from higher margin multi-channel / two-way messaging solutions in Europe.

LINK has a strategy for inorganic growth through accretive M&A, leveraging its proven track record for inorganic growth with more than 35 acquisitions completed in Europe the last decade. There is substantial scope for further accretive inorganic EBITDA growth through multiple arbitrage transactions in a still highly fragmented industry. The M&A approach is disciplined, accretive, and opportunistic within the framework of a conservative financial policy. Following the issuance of a new EUR 125 million bond in October 2024, the maturity profile of debt is divided by EUR 171 million maturing in December 2025, and remaining EUR 125 million maturing in December 2029. LINK has a conservative policy to maintain net debt in the 2 - 2.5x adjusted EBITDA range, well below to the current incurrence test at 3.5x adjusted EBITDA.

LINK's business has delivered a historical organic gross profit growth in the high single digits As the business is highly scalable, organic adjusted EBITDA growth is expected to be higher than organic gross profit growth.

Acquisitions and pro forma

LINK acquired EZ4U in Portugal in Q2 24 and NRS in Spain in Q3 24. The closing of these acquisitions affects the pro forma financials of the group. The tables below show updated pro forma figures (full-year effect of closed acquisitions as of third quarter 2024) for Q3 24 and LTM Q3 24 in reported currency. The financials are based on management estimates given the information available.

Revenue	0
ross profit
Ad BIT A	0

New agreements signed in third quarter 2024

LINK signed 648 new and expanding agreements in the third quarter, securing significant new revenue and future growth potential. The new agreements consisted of 473 signed direct customer contracts, 24 signed partner framework agreements and 151 new partner customers.

Market trends towards advanced multichannel conversational solutions

Market adoption for selected CPaaS products are accelerating as observed by LINK's new contract wins growing strongly year-over year for these products.

In the market for notification use cases, applied for essential information, there is stable demand and underlying growth momentum estimated in the high single-digits. Growth is driven mainly by alerts, reminders, payment and security products while demand for two-factor authentication (2FA) use cases are stable.

Mobile marketing use cases are increasingly adopting new channels and solutions. Demand for new channels with a richer feature set, like RCS and WhatsApp, and marketing automation solutions are accelerating and use cases are evolving from one-way mass communication to multi-channel conversational solutions. The announced support for RCS on Apple phones is expected to drive further demand for advanced messaging solutions across the Link footprint.

Customer service is posting strong growth from a lower base contributing about 10% of group revenue. Parts of IVR (automated telephone systems) are being replaced by messaging services. Due to large cost saving potentials and enhanced consumer interaction through chatbots, customer service use cases continue to gain traction.

Financial Review

(Comments are made on a year-on-year basis and figures in brackets refer to the same period last year)

Following the divestment of Message Broadcast LLC completed on January 3rd, 2024, the US subsidiary is reported as discontinued operations in the profit and loss statement and as assets held for sale in the balance sheet in all prior period comparatives. Please refer to note 9 for details.

Group income statement

Total operating revenue amounted to NOK 1 658 million (NOK 1 597 million) or a reported growth of 4% versus the same period last year. Organic revenue in fixed currency remained stable with positive currency translation effects in the quarter of NOK 55 million related to depreciation of NOK. In addition, acquired growth in the quarter was NOK 5 million related to EZ4U in Portugal closed in the previous quarter.

Reported organic Enterprise revenue growth was NOK 87 million, or 8% in fixed currency reflecting a healthy growth momentum from existing and new clients across the footprint. Revenue growth in the Enterprise segment was reduced from previous quarter due to the high level of extraordinary traffic in second quarter. Central Europe continued to demonstrate double digit growth rate while growth momentum in Northern Europe slowed from previous quarter mainly related to larger low-margin clients. Western Europe grew 7% organically impacted by the bankruptcy churn and from tougher comparable periods last year.

Due to the termination of low margin traffic, the Global messaging segment reported a revenue decline of NOK 87 million, or negative 18% YoY in fixed currency.

Gross profit was reported at NOK 357 million (NOK 317 million) with a reported organic growth of NOK 28 million, or 9% in fixed currency. Organic gross profit growth in the Enterprise segment was 6% in fixed currency and was negatively impacted by churn of one large client and disputed operator price increase in Italy, combined totalling NOK 6 million in the quarter. Excluding these effects enterprise gross profit growth was 8%. Acquired growth in the quarter was NOK 2 million related to the acquisition of EZ4U in Portugal.

Reported gross profit growth in the Global Messaging segment was NOK 10 million, or 34% YoY in fixed currency. The gap between revenue growth and gross profit growth in the Global Messaging segment was related to termination of low margin volumes. The gross margin improved from previous quarter to 9% from increased focus on profitability.

The total Group gross profit margin was reported at 21.5% (19.8%). The decline in share of revenues from Global Messaging and the margin expansion following focus on improved profitability impacted positively total group margin by 2.0 percentage points. The reported Enterprise gross margin eroded by 0.4 percentage points to 25.8% in fixed currency mainly from the disputed operator price increase in Italy.

Total operating expenses amounted to NOK 190 million (NOK 170 million) or an organic growth of 7% in stable currency compared to same quarter last year with negative currency impact of NOK 8 million. The increase was mainly related to personnel and license costs and driven by inflation and organic growth.

Adjusted EBITDA, before non-recurring cost, was reported at NOK 166 million (NOK 147 million) or 10% of total revenues (9%). In fixed currency the organic growth in adjusted EBITDA was 10% or NOK 15 million driven by gross profit expansion of NOK 27 million partly offset by NOK 12 million growth in operating expenses. The acquisition of EZ4U in Portugal added NOK 2 million to adjusted EBITDA in the quarter.

Gross profit to adjusted EBITDA conversion was reported at 47% (46%) and increased due to slightly lower growth rate on operating expenses than gross profit.

EBITDA after non-recurring items was reported at NOK 129 million (NOK 120 million) after deduction of non-recurring cost of NOK 38 million (NOK 27 million) related to acquisitions, share option programs and restructuring costs. The nonrecurring costs related to restructuring was recorded at NOK 9 million (NOK 2 million) mainly related to severance agreements. M&A costs were NOK 13 million in the quarter (NOK 1 million) and includes a NOK 11 million item related to an error in the opening balance of AMM acquired in 2021. Unrecoverable receivables of NOK 11 million was erroneously included in the opening balance and a recent review have concluded that a write off should be done. Due to the nature of the item, it is recognized as M&A costs in the third quarter financials. Remaining costs were related to ongoing M&A processes. Costs related to share-options was reported at NOK 15 million (NOK 25 million) and includes outstanding LTIP programs and employee share option programs. The ordinary costs of such programs was NOK 6 million while an additional NOK 9 million was recognized in increased social security tax related to share price increase during the third quarter.

Third quarter depreciation and amortization expense was NOK 86 million (NOK 83 million). The increase compared to same quarter last year is mainly attributable to the effect of foreign exchange translation on intangible assets and NOK 1 million related to acquisition of EZ4U in Portugal.

Net financial expense was negative NOK 21 million (negative NOK 1 million). Interest income recognized in the quarter is NOK 35 million (NOK 12 million). Interest expense in the quarter is NOK 48 million (NOK 47 million) Effects from foreign exchange have a large impact on net financial expense as the trend against NOK has been negative for the largest foreign currencies. Exposure to currency adjustment of the bond loan and to intercompany loans are the largest drivers of the net currency exchange loss.

Balance sheet and cash flow

All comparative figures presented in the balance sheet and related to the US subsidiary Message Broadcast are presented under their respective balance sheet line items as "available for sale "

Non-current assets amounted to NOK 7 492 million (NOK 6 386 million). The two largest components of non-current assets are goodwill and other intangible assets. Goodwill is comparatively higher as the result of the acquisition of EZ4U and Net Real Solutions in Q2 2024 and Q3 2024 and together with remaining non-current assets, the acquisitions contribute NOK 189 million in the period. Other intangible assets are also revalued for currency but are also amortized and hence have a declining profile Investment in own bonds is representative of the repurchase of EUR 74 million of own bond outstanding and this is the largest comparative increase over the prior period (NOK 871 million). No own bonds holdings were reported in the comparative period.

Trade and other receivables amounted to NOK 1 699 million (NOK 1 304 million). The impact from changes in foreign currency exchange rates was positive N K million Trade and other receivables include seller's credit and earn-out receivable from the sale of the US subsidiary and reclassified to current receivable since last quarter (NOK 393 million). Trade and other receivables from acquisitions contributes NOK 26 million; the remaining underlying development was positive following improved collections from clients.

Total e uity amounted to N K million (N K million) or % ( %) of balance sheet value. The net decrease was a result of the effect of the repurchase of LINK shares presented as treasury shares (NOK 309 million). This is partly offset by effects from foreign exchange and the positive net income year to date.

Long-term liabilities amounted to NOK 4 602 million (NOK 4 432 million). The largest components are external debt through a bond loan and deferred tax liability. External debt is subject to currency adjustment which is the main driver for the increase (NOK 207 million). Deferred tax liabilities declined YoY by NOK 26 million; the decrease is related to amortization of intangible assets.

Short-term liabilities, which include trade and other payables, amounted to NOK 1 562 million (NOK 1 742 million). Trade and other payables were reported at NOK 1 411 million (NOK 1 339 million). The impact from changes in foreign currency exchange rates was positive NOK 63 million, the underlying marginal increase is driven by organic growth and timing of payables. Short-term borrowings are representative of accrued interest on the bond loan. IFRS 16 lease liabilities (current) are slightly lower and have a declining profile. Tax payable has increased by NOK 70 million, which includes a N K million accrual related to the sale of the US subsidiary Short-term liabilities from acquisitions contribute NOK 19 million in the period.

Net cash flow from operating activities was NOK 201 million (NOK 45 million). Trade receivables normalized during the quarter following build in the previous quarter and was only partly offset by the release of trade payables from vendor payments in the quarter. Bank deposit interest received in the quarter included first half 2024 interest on selected accounts and was recognized under other provisions with NOK 55 million, compared to NOK 11 million same period last year.

Net cash from investing activities was negative NOK 149 million (negative NOK 28 million). The net cash outflow related to the acquisition of Net Real Solutions was NOK 107 million. There were no acquisitions in the comparable period last year. Investment in CAPEX for both tangible and intangible asset has increased NOK 14 million comparatively.

Net cash flow from financing activities was negative NOK 132 million (negative NOK 5 million). A total of NOK 128 million of LINK shares were repurchased during the quarter; there were no comparable transactions in the same period last year. Remaining cash outflow was related to lease liabilities.

Total cash and cash equivalents were NOK 2 491 million at the end of the quarter (NOK 1 066 million).

Condensed consolidated income statement

NOK '000	Note	Q3 2024	Q3 2023	YTD 2024	YTD 2023	Year 2023
Total operating revenues	3	1 657 744	1 596 633	5 145 327	4 486 305	6 282 126
Direct cost of services rendered		-1 300 915	-1 279 899	-4 053 796	-3 523 469	-4 934 441
Gross profit	3	356 828	316 734	1 091 531	962 836	1 347 685

Payroll and related expenses		-117 603	-105 432	-366 151	-339 842	-464 155
Other operating expenses		-72 799	-64 262	-220 755	-190 860	-270 408
Adjusted EBITDA	3	166 427	147 040	504 625	432 133	613 121
Restructuring cost		-8 904	-1 558	-15 965	-11 028	-29 014
Share based compensation	ర్	-15 374	-24 759	-34 288	-72 305	-98 177
Expenses related to M&A		-13 232	-791	-17 884	-5 557	-8 078
EBITDA		128 917	119 932	436 489	343 243	477 853
Depreciation and amortization	8	-85 571	-83 461	-251 835	-246 739	-337 535
Impairment cost	8
Operating profit (loss)		43 346	36 472	184 654	96 504	140 317
Finance income and finance expenses
Net currency exchange gains (losses)		-7 974	34 694	219 378	-1 347	44 319
Net interest expense		-12 457	-34 861	-38 659	-112 017	-139 667
Net other financial income (expenses)	10	-223	-419	76 044	-566	6 002
Finance income (expense)		-20 655	-585	256 763	-113 930	-89 345
Profit (loss) before income tax		22 691	35 886	441 417	-17 426	50 972
Income tax		-1 973	-13 548	-105 690	2 603	-12 616
Profit (loss) from continuing operations		20 718	22 339	335 727	-14 823	38 356
Profit (loss) from discontinued operations	10		20 294		44 693	28 926
Profit (loss) for the period		20 718	42 632	335 727	29 869	67 282

Earnings per share (NOK/share):
Earnings (loss) per share from continuing operations		0,07	0,08	1,12	-0,05	0,13
Diluted (loss) earnings per share from continuing operations		0,07	0,07	1,09	-0,05	0,13
Earnings (loss) per share from discontinued operations		0,00	0,07	0,00	0,15	0,10
Diluted (loss) earnings per share from discontinued operations		0,00	0,07	0,00	0,15	0,09

Condensed consolidated statement of comprehensive income

NOK '000	Q3 2024	Q3 2023	YID 2024	YETD 2023	Year 2023
Profit (loss) for the period	20 718	42 632	335 727	29 869	67 282
Total effect - foreign exchange	149 769	-165 994	-384 776	312 471	195 641
Gains and losses net investment hedge	-34 960	42 798	-49 780	-70 272	-69 037
Tax on OCI that may be reclassified to P&L	7 691	-9 415	10 952	15 460	15 188
OCI that may be reclassified to P&L	122 500	-132 612	-423 604	257 660	141 793
Actuarial gains and losses	0	0	0	0	-1 757
OCI that will not be reclassified to P&L	1	1	1	1	-1 757

Total Other Comprehensive Income (OCI)	122 500	-132 612	-423 604	257 660	140 036
Total Comprehensive Income	143 218	-89 980	-87 877	287 529	207 318

Condensed consolidated statement of financial position

oodwill	0		0
ther intangible assets	0		0
Right of use assets	0 0
uipment and fi tures			0
eferred ta assets		0 0
Investment in bonds	0
ther long term receivables


Trade and other receivables		0	0
Cash and cash e uivalents	0	0	0
Current assets held as available for sale			0




Shareholders e uity			0


Long term borrowings	0	0	00 0
Lease liabilities	0 0
eferred ta liabilities		0 0
ther long term liabilities


Borrowings short term		0
Lease liabilities		0
Trade and other payables	0 00
Ta payable			0
Short term liabilities held as available for sale		0

Condensed consolidated statement of changes in equity

YTD Q3 FY24 ('000 NOK)	Note	Share capital	Share premium	Treasury funds	Other equity	Retained earnings	Other reserves	Total equity
Total Opening Balance		1 585	5 670 341	I	925 387	-378 434	-335 987	5 882 891
Changes in Net Income						335 727		335 727
Total Other Comprehensive Income (OCI)						-423 604		-423 604
Total Comprehensive Income		I		1		-87 877		-87 877
Changes due to issue of stock		8	14 415					14 423
Changes due to repayment of equity				-308 595				-308 595
Share based payment					17 308			17 308
Closing Balance	8	1 593	5 684 756	-308 595	942 695	-466 311	-335 987	5 518 151

YTD Q3 FY23 ('000 NOK)	Note	Share capital	Share premium	Other equity	Retained earnings	Other reserves	lotal equity
Total Opening Balance		1 579	5 667 588	140 779	-473 456	-111 043	5 225 447
Changes in Net Income					29 869		29 869
Total Other Comprehensive Income (OCI)				22 955	238 784	-4 079	257 660
Total Comprehensive Income		1	1	22 955	268 653	-4 079	287 529
Changes due to issue of stock		1	1 675				1 677
Share based payment				63 198			63 198
Closing Balance	8	1 580	5 669 264	226 932	-204 803	-115 122	5 577 851

Condensed consolidated statement of cash flows

NOK '000	Note	Q3 2024	Q3 2023	YTD 2024	YID 2023	Year 2023
Net cash flows from operating activities
Profit before income tax from continuing operations		22 691	35 886	441 417	-17 426	50 972
laxes paid		-34 552	-19 677	-79 718	-33 401	-41 635
Finance income (expense)		20 655	3 041	-256 653	116 386	89 345
Depreciation and amortization		85 571	83 461	252 716	246 739	337 535
Employee benefit - share based payments		5 685	20 621	17 308	63 198	78 565
Net losses (gains) from disposals		-169	-74	-169	-248	-248
Change in other provisions		41 969	-3 003	71 405	-6 019	20 384
Change in trade and other receivables		167 727	-125 545	150 736	-142 008	-201 025
Change in trade and other payables		-108 116	50 478	-156 247	60 737	198 402
Net CF from operating activities from cont. operations		201 459	45 189	440 795	287 958	532 296
Net CF from operating activities from discont. operations		-	39 255		185 822	190 902
Net cash flows from investing activities
Payment for equipment and fixtures		-3 719	-2 591	-6 908	-3 738	-5 857
Payment for intangible assets		-38 414	-25 101	-102 811	-74 641	-110 270
Proceeds from sales of equipment and fixtures		169		169
Payment for acquisition of subsidiary, net of cash	9	-106 634		-146 316	-7 227
Disposal of subsidiary				2 211 993
Net CF from investing activities from cont. operations		-148 599	-27 692	1 956 126	-85 607	-116 127
Net CF from investing activities from discont. operations			-14 465		-47 419	-63 986
Net cash flows from financing activities
Proceeds on issue of shares				14 423	1 677	2 759
Repayment of equity		-128 275		-308 595
Proceeds from borrowings	6
Repayment of borrowings				-730 813		-117 038
Interest paid		-534	-802	-73 476	-74 357	-150 264
Principal elements of lease payments		-3 186	-4 159	-11 739	-12 292	-16 583
Net CF from financing activities from cont. operations		-131 995	-4 961	-1 110 200	-84 971	-281 127
Net CF from financing activities from discont. operations			-713		-1 589	-2 506
Net change in cash and cash equivalents		-79 134	36 613	1 286 721	254 193	259 452
Cash and equivalents at beginning of period		2 519 112	1 088 897	1 108 232	826 851	826 851
Effect of foreign exchange rate changes		50 998	-21 031	96 023	23 435	21 928
Less: Cash and equivalents at end of the period (held for sale)			-38 156		-38 156	-11 636
CCE at end of the period from cont. operations		2 490 975	1 066 323	2 490 975	1 066 323	1 096 596

Selected notes to the accounts

Note 1 – General information

The Board of Directors approved the condensed interim financial statements for the three months ended 30 September 2024 for publication on 5 November 2024. The Group financial statements for the third quarter have not been subject to audit or review by auditors; figures for FY2023 are audited.

LINK Mobility Group Holding ASA (LINK) is a public limited company registered in Norway. The Company is one of urope's leading CPaaS providers within mobile communication specializing in messaging and digital services. Headquartered in Oslo, Norway, the Group has 641 employees and operates in 18 countries.

Note 2 – Basis for preparation and significant accounting policies

The consolidated condensed interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) IAS "Interim Financial Reporting " The condensed interim financial statements do not include all information and disclosures required in the annual financial statement and should be read in accordance with the roup's annual report for 0 which has been prepared according to IFRS® accounting standards as adopted by the EU and the Norwegian Accounting Act.

The preparation of interim financial statements requires the Group to make certain estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income, and expenses. Estimates and judgements are continually evaluated by the Group based on historical experience and other factors, including expectations of future events that are deemed to be reasonable under the circumstances. Actual results may differ from these estimates. The most significant judgements used in preparing these interim financial statements and the key areas of estimation uncertainty are the same as those applied in the consolidated annual report for 2023.

Goodwill and other intangible assets with an indefinite useful economic life are not amortized but are tested annually for impairment. The company performs an impairment test for goodwill on an annual basis or when there are circumstances which would indicate that the carrying value of goodwill may be impaired. When assessing impairment assets are grouped into cash generating units (C U's)

The presentation currency of the consolidated financial statement is Norwegian kroner (NOK). Unless otherwise stated, amounts presented are in thousands of NOK.

The accounting policies applied in the preparation of the consolidated interim financial statements are consistent with those applied in the preparation of the annual IFRS financial statements for the year ended December 31, 2023.

Hedging

The Group applies hedge accounting for hedges that meet the criteria for hedge accounting. The Group has a hedge of net investments in foreign operations.

At the inception of each hedge relationship, the Group designates and documents the hedge accounting relationship, risk management objective, and strategy for undertaking the hedge.

The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging instrument's effectiveness in offsetting the e posure to change in the hedged item's fair value of cash flows attributable to the hedged risk Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they have been highly effective throughout the financial reporting periods for which they were designated.

Hedge relationships that meet the re uirements for hedge accounting are accounted for in the roup's consolidated financial statements as follows:

Hedge of a net investment

A hedge of a net investment in a foreign operation is accounted for in a similar way to a cash flow hedge. Foreign exchange gains or losses on the hedging instrument relating to the effective portion of the hedge are recognized directly in comprehensive income while any foreign exchange gains or losses relating to the ineffective portion are recognized in the income statement. On disposal of the foreign entity, the cumulative foreign exchange gains or losses recognized in other comprehensive income is reclassified to the income statement.

Exchange rate risk

Net investment hedge accounting is applied when possible.

For information related to amendments to standards, new standards, and interpretations effective from 01 January 2024, please refer to the Group Annual Report for 2023. None of the amendments, standards, or interpretations effective from 0 January 0 have had a significant impact on the roup's consolidated interim financial information.

Note 3 – Segment reporting

Beginning in the first quarter 2024, the Netherlands as a CGU has been moved from Central to Western Europe following an internal reorganization. All historical segment financials are presented to reflect this change.

The Group reports revenue, gross profit (revenue less direct costs), gross margin (gross profit divided by revenue) and ad usted BIT A in functional operating segments to the Board of irectors (the roup's chief operating decision makers) While LINK uses all four measures to analyze performance the roup's strategy of profitable growth means that adjusted EBITDA is the prevailing measure of performance (refer to alternate performance measures).

An examination of operating units based on market maturity and product development as well as geography identifies four natural reporting segments. These are Northern Europe, Western Europe, Central Europe and Global Messaging; these represent market clusters. Generally, regions are segregated into similar geographic locations as these follow similar market trends. Global Messaging includes all regions with aggregator traffic; the other four have enterprise traffic.

The regions are:

Northern Europe

The Nordics is composed of Norway, Sweden, Denmark and Finland.

Central Europe

Central Europe is composed of Bulgaria, Romania, North Macedonia, Poland, Hungary, Germany, and Austria.

Western Europe

Western Europe is composed of Spain, France, the United Kingdom, Italy, Portugal and the Netherlands.

Global Messaging

Global messaging is comprised of non-enterprise traffic and is representative of either stand-alone business or as a component of revenues in countries included above. If a business is comprised of both enterprise and wholesale/aggregator transactions, the latter is segregated here. The Swiss operation Horisen Messaging is included here.

Wholesale/aggregator business is defined as an operating unit within LINK's industry and that use LINK connections in markets where they do not have such connections themselves. This business can generally be referred to, at least partly, as a direct competitor that use LINK connections. Smaller local aggregators cannot be expected to be covered efficiently by Global Messaging and as such they are still subject to local handling (not a focus area though because they are generally low margin and switch easily).

Revenue per segment	10872024	03 2023		YED 2024 YED 2023	Year 2023
Northern Europe	354 902	346 875	1 106 867	1 069 139	1 489 934
Central Europe	409 628	336 912	1 240 786	977 409	1 369 426
Western Europe	474 284	424 264	1 513 113	1 305 961	1 842 380
Global Messaging	418 930	488 582	1 284 561	1 133 796	1 580 386
Total revenues	1 657 744	1 596 633	5 145 327	4 486 305	6 282 126

Gross profit by segment	03 2024	Q3 2023	YELD 2024	YIDE 2023	Year 2023
Northern Europe	99 630	95 144	313 406	297 376	409 637
Central Europe	108 669	90 521	314 413	266 993	373 343
Western Europe	112 164	105 004	366 278	315 919	448 403
Global Messaging	36 366	26 064	97 434	82 547	116 302
Total gross profit	356 828	316 734	1 091 531	962 836	1 347 685

Adj. EBITDA by segment	03 2024	Q3 2023	Your Dr2024	YO 2023	Year 2023
Northern Europe	63 375	62 042	196 655	185 622	255 007
Central Europe	73 747	59 766	215 816	178 594	249 606
Western Europe	53 221	51 291	189 419	152 718	221 535
Global Messaging	24 235	15 312	55 445	52 107	74 352
Group Costs	-48 151	-41 371	-152 710	-136 907	-187 379
Total adjusted EBITDA	166 427	147 040	504 625	432 133	613 121

Reconciliation of adjusted EBITDA to Group profit (loss) before income tax	Q3 2024	Q3 2023	YTD 2024	YELD 2023	Year 2023
Adjusted EBITDA	166 427	147 040	504 625	432 133	613 121
Non-recurring items	-37 510	-27 108	-68 136	-88 891	135 269
Depreciation and amortization	-85 571	-83 461	-251 835	-246 739	337 535
Operating profit	43 346	36 472	184 654	96 504	140 317
Finance income (expense)	-20 655	-585	256 763	-113 930	-89 345
Profit (loss) before income tax	22 691	35 886	441 417	-17 426	50 972

* Non-recurring items are expenses related to significant one-time, non-recurring events such as acquisitions and restructuring activities and share-based compensation

Note 4 – Related party transactions

Balances and transactions between LINK Mobility Group Holding ASA and its subsidiaries, have been eliminated on consolidation and are not disclosed in this note. As of 30 September 2024, the Group has not entered any transactions with related parties.

Note 5 – Assets

Investment in bonds is representative LINK's own holding of bonds. To date, LINK has repurchased EUR 74 million of its five-year senior unsecured fixed rate bond issue.

In FY2023, investments in own bonds is included as a reduction long-term borrowings.

Non-current assets	YED 2024	Year 2023
Investment in bonds	870 573	112 405
Total	870 573	112 405

Current assets	YID 2024	Year 2023
Trade receivables	1 132 054	1 258 454
Unbilled revenue	173 636	173 563
Earn-out receivable	392 815
Other short-term receivables	434	- 51 604
Total	1 698 939	1 380 412

The above trade receivables and other receivables represent the Group's maximum exposure to credit risk at the balance sheet date.

Trade accounts receivable relate to the sale of mobile messaging transactions, payment services, licenses, and consulting services; these are within the normal operating cycle.

Unbilled revenue are representative of an estimate for messaging traffic. An accrual for revenue is made to best reflect volumes in advance of when an invoice from the telecommunications provider is received.

The earn-out receivable related to the divestment of Message Broadcast LLC (US subsidiary) is comprised of a seller note of USD 10 million and an earn-out component of up to USD 30 million.

Note 6 – Debt

On 15 December 2020, LINK Mobility Group Holding ASA (LINK) successfully completed the issuance of EUR 200 million senior unsecured bonds, with a EUR 350 million borrowing limit. Part of the proceeds from the bond issue were used to repay the remaining outstanding senior facility agreement (SFA).

On 23 June 2021, LINK issued EUR 170 million new bonds in LINK's outstanding 5-year senior unsecured 3.375% fixed rate bond issue, raising the total outstanding amount to EUR 370 million. The bond were issued at par.

The bond have a 5-year tenor and a fixed coupon of 3.375% p.a.; any outstanding bonds are to be repaid in full at the maturity date.

Non-current financial liabilities	YED 2024	Year 2023
Bond loan	4 327 807	4 008 320
Lease liability	20 055	31 421
Other long-term liabilities	9 945	6 834
Total	4 357 808	4 046 575

Current liabilities /	YTD 2024	Year 2078
Lease liability	12 369	14 549
Debt to financial institutions/bond loan*	42 849	2 741
Total	55 218	17 290

* Instalments falling due within a 12-month period, including non-capitalized interest, are classified as current.

Note 7 – Options

In Q3 2024, an expense of NOK 15 million was recognized in relation to the LTIP, Chairman of Board, and employee option programs. The cost comprise of program costs of NOK 6 million and increase in social security tax accrual of NOK 9 million.

Please refer to the annual report for 2023 and to Company press releases regarding details for the respective option programs.

Note 8 – Depreciation, amortization and impairment

Depreciation and amortization are comprised of the following amounts:

	03 2024		Q3 2023 YTD 2024 YI D 2023		Year 2023
Equipment and fixtures	2 121	2 426	6 229	6 612	7 720
Right-of-use-assets	3 308	4 413	11 325	12 875	17 356
Intangible assets acquisitions*	57 729	55 334	169 630	165 212	221 549
Intangible assets - subsidiaries**	22 413	21 287	64 652	62 040	90 910
D&A from cont. operations	85 571	83 460	251 835	246 739	337 535
D&A from discont. operations		2 913		17 906	24 857
Total depreciation and amortization	85 571	86 374	251 835	264 644	362 391

* Acquisitions: depreciation of allocated surplus values from purchase price allocations on acquisitions (Group level)

** Subsidiaries: depreciation of amounts booked in subsidiary balances. Includes book values from acquisitions

There is no impairment of intangible assets or goodwill in the periods presented.

Note 9 – Earnings per share

The roup's earnings per share is calculated as below:

NOK '000	Q3 2024	Q3 2023	YID 2024	YID 2023	Year 2073
Net (loss) income from continuing operations	20 718	22 339	335 727	-14 823	38 356
Net (loss) income from discontinued operations	0	20 294	0	44 693	28 926
Owners of LINK Mobility Group Holding ASA	20 718	42 632	335 727	29 869	67 282
Weighted average number of ordinary shares (basic)	Q3 2024	Q3 2023	YTD 2024	YID 2023	Year 2023
lssued ordinary shares at 01 January	297 059	295 890	297 059	295 890	295 890
Effect of shares issued (05 June 2023)		175		175	175
Effect of shares issued (08 November 2023)					909
Effect of shares issued (22 December 2023)					85
Effect of shares issued (04 April 2024)	1 647		1 647
Weighted average number of ordinary shares	298 706	296 065	298 706	296 065	297 059
Basic earnings (loss) per share from total operations	0,07	0,14	1,12	0,10	0,23
Basic earnings (loss) per share from continuing operations	0,07	0,08	1,12	- 0,05	0,13
Basic earnings (loss) per share from discontinued operations		0,07		0.15	0,10
Weighted average number of ordinary shares (diluted)	Q3 2024	Q3 2023	YOU 2024	YOUD 2023	Year 2023
Weighted average number of ordinary shares (basic)	298 706	296 065	298 706	296 065	297 059
Effect of share options on issue	7 928	4 546	7 928	4 546	8 478
Weighted average number of ordinary shares (diluted)	306 635	300 611	306 635	300 611	305 537
Diluted earnings (loss) per share from total operations	0,07	0,14	1,09	0,10	0,22
Diluted (loss) earnings per share from continuing operations	0.07	0,07	1,09	- 0,05	0.13
Diluted (loss) earnings per share from discontinued onerations		0,07		0.15	0.09

Note 10 – Discontinued Operation

Operations presented as discontinued operations include Message Broadcast LLC (US subsidiary), which was effectively sold upon the signing of a sales and purchase agreement (SPA) on 7 November 2023.

Discontinued operations represent a separate major line of business that has been disposed.

Discontinued operations are excluded from the results of continuing operations and are presented on a single line after tax in the income statement. Discontinued operations are also excluded from the segment reporting (note 3).

The profit (loss) of the disposed US subsidiary presented as discontinued operations until disposal, and subsequent adjustments are shown in the table below:

Total revenue	0	0 0
ross profit	0	0
Ad usted BIT A		0
perating profit (loss)		0
Finance income (e pense)		0
Profit (loss) before income ta		0 0
Income ta

The figures presented above are only representative of the US subsidiary. As a result of the disposal, related expenses are also classified in the discontinued operations line item in the condensed consolidated income statement.

Statement of profit and loss from discontinued operations (continued):

Profit (loss) from Message Broadcast LLC		0
Currency option premium
Legal fees		0
cess value amortization management fee and intercompany loan interest
Profit (loss) from discontinued operations before income ta	0
Income ta (amortization of deferred ta liability)

The currency option premium is representative of costs incurred to secure a EUR call option (EUR/USD).

The accumulated amounts for discontinued operations recognized in other comprehensive income (OCI) within equity are as follows:

Message Broadcast LLC	0	0	0 0

The divestment of Message Broadcast LLC (US subsidiary) was closed on 3 January 2024. The amount of the transaction is USD 260 million, including a seller note of USD 10 million and an earn-out component of up to USD 30 million. The earn-out is linear from USD 7.5 million, increasing with revenue growth to match historic Message Broadcast LLC performance for full payout.

Details of the sale of the US subsidiary are as presented below:

Cash
Fair value of contingent consideration
Total disposal consideration
Carrying amount of net assets sold
ain on sale before income ta and reclassification of foreign currency translation reserve
Reclassification of foreign currency translation reserve	0
Income ta e pense on gain	0 0

If operations of the discontinued operation achieve certain performance criteria during the period 01 January 2024 to 31 December 2024, as specified in an earn-out clause in the SPA, additional cash consideration of up to USD 30 million will be receivable. The earn-out is recognized as a financial asset at fair value through the profit or loss and is included in long-term receivables in the consolidated statement of financial position.

The carrying amounts of assets and liabilities as at the date of sale (03 January 2024) were:

oodwill
ther intangible assets

* The amounts presented are held in LINK Mobility Group Holding ASA as excess values. Other amounts held in the US subsidiary are included in the total amount presented as current assets held as available for sale in the consolidated statement of financial position.

Note 11 – Business combinations

Acquisitions during the period

Curiosity Layer Investiga o e Comunica o Lda (hereafter U)	Provider of mobile messaging services and mobile solutions	May 0	00%	LINK Mobility Spain SLU
Net Real Solutions S L (hereafter NRS)	Provider of mobile messaging services and mobile solutions	September 0	00%	LINK Mobility Spain SLU

Acquisition of EZ4U

On 28 May 2024, LINK Mobility Group AS acquired the Portuguese company EZ4U. The acquisition e pands LINK's geographical reach in urope to Portugal and offers numerous upselling opportunities through superior local customer success services in Portuguese.

The purchase price is settled through cash upon closing. The transaction includes an earn-out structure related to financial performance for FY 2024.

EZ4U was founded in 2010 and is headquartered in Porto. The company is dedicated to enterprise messaging with focus on SMS RCS WhatsApp email IVR and chatbots U's software platform and APIs facilitate seamless communications between businesses and customers, serving more than 500 clients across such diverse sectors as healthcare, transportation and retail.

Acquisition of NRS

On 24 September 2024, LINK Mobility Spain SLU acquired Net Real Solutions (NRS), headquartered in Castellon, Spain. This acquisition expands LINK's geographical reach in Europe and unlocks opportunities in Latin America, where NRS has a significant market share.

The purchase price is cash upon closing. The transaction includes an earn-out structure related to financial performance for FY 2024.

NRS, founded in 2001, specializes in SMS marketing, email marketing, and voice services, catering to sectors such as finance, retail, technology, and services, among others. Last year, NRS sent over 2 billion SMS messages globally. In addition to offering operational and automated multi-channel communications, the company advises B2C, B2B companies, and startups on designing marketing and omnichannel communication strategies.

Revenue and EBITDA, in the period from the date of acquisition until 31 December 2024:

Revenue	0	0
BIT A

Estimated revenue and EBITDA, as if the acquisition had occurred 01 January 2024:

Revenue
BIT A	0

Total consideration:

Cash	0
arn out )

1) Earn-outs

The purchase price of EZ4U includes an earn-out payment based on financial performance at the end of FY2024. The purchase price of NRS includes an earn-out payment based on financial performance at the end of FY2024.

Identifiable assets and liabilities recognized on the date of the business combination:

EZ4U

Assets assumed in connection with the business combinations have been recognized at the estimated fair value on the date of the business combination. Management has identified customer relations as the major asset.

Net Real Solutions

Assets assumed in connection with the business combinations have been recognized at the estimated fair value on the date of the business combination. Due to the timing of this acquisition, sufficient time has not passed for the completion of a purchase price acquisition. At the date of this report, allocation is to goodwill.

Note that the estimates are provisional and may be subject to change during the measurement period, which is one year from the date of the acquisition.

Customer relationships	0 0
Trademark
uipment and fi tures	0	0
ther non current assets
Trade and other receivables
Cash and cash e uivalents
eferred ta liability	( )	( )
Trade and other payables	( )	( )

Goodwill

(Amounts in N K 000)
Total consideration	0
Fair value of identifiable net assets ac uired

Goodwill originating from the business combination is primarily related to anticipated synergies from ongoing operations and the benefit of integrating the entire business into the group. No impairment has been recognized after the business combination.

Goodwill that has arisen as part of the business acquisition is not tax deductible.

Identifiable assets and liabilities recognized on the date of the business combination

Note that the estimates are provisional and may be subject to change during the measurement period, which is one year from the date of the acquisition.

Note 12 – Events after the reporting date

On 7 October 2024, LINK Mobility Group Holding ASA, together with its subsidiaries (hereafter LINK), announced that Pareto Securities and SpareBank 1 Markets were mandated as joint lead managers to arrange a series of fixed income investor meetings that would commence 8 October 2024. Subject to inter alia market conditions, a senior unsecured 5-year floating rate EUR denominated bond issue might follow.

On 9 October 2024, it was announced that LINK successfully placed a EUR 125 million senior unsecured bond due 29 October 2029. The bond will have a coupon of 3-month EURIBOR + 2.35% per annum. Listing will be on the Oslo Stock Exchange and the Frankfurt Open Market.

With the new bond issue, the company has bought back EUR 125 million of LINK01 (ISIN: NO0010911506) ("LINK0 ") due ecember 0 which will be cancelled The UR million of LINK0 bonds held by LINK will also be cancelled.

On 23 October 2024, the cancellations were executed and the nominal outstanding amount in LINK01 is EUR 171 million.

On 30 October 2024, LINK announced the acquisition of Reach-Data Ltd in the UK. This acquisition expands the UK foothold and adds access to a diverse client base.

The purchase price is settled through cash upon closing.

Reach-Data Ltd. Was founded in 2002 and is headquartered in Doncaster. The company has built a strong foothold in the UK market, providing businesses with direct global communications routes. Specializing in cost-effective SMS marketing solutions, companies can efficiently connect with their customers via mobile messaging. A user-friendly platform supports bulk SMS messaging from desktop, mobile, and tablet devices.

Due to the timing of this acquisition, estimates have not been made and the purchase price allocation process will be performed during Q4 2024.

ALT RNATIV P RF RMANC M ASUR S ("APM S")

The financial information in this report is prepared under International Financial Reporting Standards (IFRS) as adopted by the U To enhance the understanding of LINK's performance the roup presents several alternative performance measures ("APM's") An APM is defined by the uropean Securities and Markets Authority (ESMA) guidelines as a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework (IFRS).

Below, LINK presents certain APMs, including gross margin, EBITDA, adjusted EBITDA, and adjusted EBITDA margin. APMs such as EBITDA are commonly reported by companies in the markets in which LINK competes and are widely used by investors when comparing performance on a consistent basis without regard to factors such as depreciation and amortization, which can vary significantly, depending upon accounting methods (particularly when acquisitions have occurred) or based on non-operating factors.

APM figures presented in the following tables are exclusive of Message Broadcast LLC (US subsidiary), except for LTM adjusted EBITDA (proforma) for year 2023.

LINK uses the following APMs:

Gross Profit

Gross Profit means revenues less direct costs of services rendered.

Gross margin

Gross margin means gross profit as a percentage of total operating revenues.

Adjusted EBITDA

Adjusted EBITDA means EBITDA adjusted by expenses related to significant one-time, non-recurring events such as acquisitions and restructuring activities, and share-based compensation. LINK has presented adjusted EBITDA in the consolidated statement of profit and loss because management believes the measure provides useful information regarding operating performance.

Adjusted EBITDA margin

Adjusted EBITDA margin is presented as adjusted EBITDA as a percentage of total operating revenues in the respective periods.

EBITDA

EBITDA means earnings before interest, taxes, amortization, depreciation, and impairments. LINK has presented EBITDA in the consolidated statement of profit and loss because management believes that the measure provides useful information regarding the roup's ability to service debt and to fund capital expenditures and provides a helpful measure for comparing its operating performance with that of other companies.

See below for a reconciliation of EBITDA to Adjusted EBITDA, and adjusted EBITDA margin.

NOK "000	Q3 2024	Q3 2023	YID 2024	YID 2023	Year 2023
Operating profit (loss, ("EBIT")	43 346	36 472	184 654	96 504	140 317
Depreciation and amortization	85 571	83 461	251 835	246 739	337 535
EBITDA	128 917	119 932	436 489	343 243	477 853

Add: Restructuring cost	8 904	1 558	15 965	11 028	29 014
Add: Share based compensation	15 374	24 759	34 288	72 305	98 177
Add: Expenses related to acquisitions	13 232	791	17 884	5 557	8 078
Adjusted EBITDA	166 427	147 040	504 625	432 133	613 121
Operating revenues	1 657 744	1 596 633	5 145 327	4 486 305	6 282 126
Adjusted EBITDA	166 427	147 040	504 625	432 133	613 121
Adjusted EBITDA margin	10,0 %	9,2 %	9,8 %	9,6 %	9,8 %

Net debt*

The Group monitors Net debt according to bond loan terms which includes interest-bearing debt and debt like arrangements. Net debt is derived from the balance sheet and consists of both current and non-current liabilities such as bond loan, other debt from financial institutions and current and non-current lease liabilities less cash and cash e uivalents Payable seller's credits holdback and earn-outs are included in net debt to the extent they are interest-bearing.

Net debt/LTM Adjusted EBITDA*

LINK measures leverage ratio as Net debt/Last Twelve Months Adjusted EBITDA. The measure provides useful information about the financial position. Due to M&A activity LINK use Last Twelve Months Proforma Adjusted EBITDA to calculate net debt to present a comparable measure over time.

Below is a reconciliation of Net debt and Net debt/Adjusted EBITDA ratio:

NOK '000	Q3 2024	Year 2023
Bond Ioan - Principal	4 291 537	4 073 812
IFRS 16 liabilities	32 424	51 927
Less cash	-2 490 975	-1 108 232
Less: Bond assets	-858 307	l
Net debt	974 679	3 017 506
LTM adjusted EBITDA (proforma)	702 411	782 186
Net debt/LTM adjusted EBITDA	1,4	3,9

* Calculated according to bond agreement