LINK Mobility Group Holding

Earnings Release • Feb 13, 2025

Interim financial report Fourth quarter 2024 LINK Mobility Group Holding ASA

13 February 2024

linkmobility.com

Highlights fourth quarter 2024

● Revenue growth lower than Gross profit due to mix effects

• Revenue reported at NOK 1 848 million and 2% organic decline in fixed currency
• Global Messaging revenue decline due to termination of low-value destinations
• Enterprise revenue growth impacted by shift from low margin traffic to higher margin products
• Gross profit NOK 436 million, organic growth in fixed currency of 8%
  • Growth driven by higher value clients and advanced products with higher margins
  • Resilient growth momentum on high comparables
• Adjusted EBITDA NOK 213 million, organic growth in fixed currency of 12%
• LINK awarded Juniper Platinum Award for best RCS solution in Europe

LINK Mobility Holding Group ASA

Q4 2024 – Concluding a strong year

LINK Mobility (LINK) reported a solid gross profit and adjusted EBITDA at NOK 436 million and NOK 213 million respectively, with organic growth in fixed currency at 8% and 12%. This concludes a strong year above expectations with double digit organic gross profit growth and improved profitability demonstrated through adj.EBITDA margin expansion. LINK continues to execute on the strategy of local presence in our markets resulting in strong commercial results securing future growth momentum. Enterprises have increased interest in richer channel such as RCS to improve end-user engagement, and by the recent award for best RCS business messaging solution in Europe by Juniper Research, LINK is well positioned for capturing growth in this space.

Inorganic growth is a key part of our strategy, as we see further potential to consolidate the European messaging market at accretive multiples. In 2024 LINK closed the acquisition of three prioritized targets in Europe and further replenished the acquisition pipeline with both bolt-on and level-up targets in Europe and beyond. The strong financial position enables LINK to continue its proven track record of inorganic growth with more than 35 acquisitions completed during the last decade. There is substantial scope for further consolidating the messaging market and LINK continue to pursue opportunities in a still highly fragmented industry.

LINK's ng an g ow ng b s n ss s v n by mo than 50,000 loyal customers continuing to increase their usage. Growth momentum is supported by increased adoption rates for digital messaging and traction on higher margin CPaaS softwa sol t ons an OTT hann ls l k RCS an What's pp Op ato s ppo t fo RCS B s n ss M ssag ng ont n to expand across LINKs footprint paving the way for future growth and LINK is well positioned to capture RCS growth.

Total reported messaging volumes increased by 24% in the fourth quarter. Acquisition of Net Real Solution in Spain added significant volumes from their LATAM business contributing to the strong reported volume growth. Other messaging continue to grow as new and richer channels are adopted.

Revenue is reported at NOK 1 848 NOK with a growth momentum behind gross profit growth due to several mix effects. Organic gross profit growth is reported at 8% while organic revenue growth is reported at negative 2%. Revenue growth has been impeded by replacing low-margin revenue with high margin traffic and advanced products, and termination of low value traffic in the Global Messaging segment. Profitability improved and was reflected through expansion in both gross margin and adjusted EBITDA margin to 23.6% and 11.5% respectively in the quarter.

Gross profit in the fourth quarter is reported at NOK 436 million or a reported growth of 13% while organic growth is reported at 8% in stable currency supported by organic gross profit growth of 8% in the enterprise segment and 10% in the Global messaging segment. The enterprise segment growth improved from last quarter mainly from strong performance on both domestic and Global clients in Central Europe region growing 23%, while Northern and Western Europe growth momentum remained in the low single digit range impacted by isolated churn from bankruptcy in Western Europe and high comparables last year. The overall gross margin improved with 2.1 percentage points impacted by positive client and product mix development towards higher value clients and more advanced products.

Reported adjusted EBITDA growth was 18% to NOK 213 million in the fourth quarter, with organic growth at 12% in fixed currency. Adjusted EBITDA margin increased mainly from improvement in gross margin related to improved mix between high and low margin revenue both related to traffic and products.

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

LINK Mobility Holding Group ASA

LINK well positioned for value generation going forward

LINK reiterates medium term ambitions of continued high single digit gross profit growth and adjusted EBITDA growth at higher pace supported by the scalable business model. Inorganic growth will continue to be a key pillar for building further scale and ambition level is to add 10% of adjusted EBITDA through bolt-on acquisitions. A sound capital allocation policy is set that prioritizes accretive M&A but within net debt to adjusted EBITDA roof of 2.0 – 2.5x.

LINK's x st ng b s n ss ons sts of a la g and diverse customer base which are served through a localized model. The business model have low customer churn due to sticky integration and a high and constantly replenished contract backlog. Beyond its recurring nature, LINK sees a significant upsell and new sale potential from higher margin multi-channel / twoway 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.

Acquisitions and pro forma

Smaller bolt-on acquisitions in existing markets are a priority to realize further scale, whilst level-up opportunities in both Europe and beyond are part of the pipeline. The M&A approach is disciplined, accretive, and opportunistic within the framework of a conservative financial policy. The acquisitions closed during 2024 are in line with LINKs M&A strategy and was closed at EV/Cash EBITDA multiples in the historical range of between 6-7x. The prioritized pipeline consists of 11 targets, whereof 4 are in due diligence stage and total pipeline value of EUR 30-40 million cash EBITDA. In the fourth quarter, LINK closed the acquisition of Reach Data in the UK. The acquisition was based on an enterprise value of GBP 3 million, implying an LTM EV/adj.EBITDA multiple of 6.3x and the transaction was settled fully in cash.

The tables below show updated pro forma figures (full-year effect of closed acquisitions as of the fourth quarter 2024) for Q4 24 and full year 2024 in reported currency. The financials are based on management estimates.

R v n
oss p of t	0
BIT

New agreements signed in fourth quarter 2024

LINK signed 843 new and expanding agreements in the fourth quarter, securing significant new revenue and future growth potential. The total contract value in terms of gross profit from the closed contracts was NOK 38 million whereof NOK 24 million from SMS A2P solutions and NOK 14 million from CPaaS solutions. The new agreements consisted of 678 signed direct customer contracts, 41 signed partner framework agreements and 124 new partner customers.

Market trends towards advanced multichannel conversational solutions

Ma k t a opt on fo s l t CPaaS p o ts a a l at ng as obs v by LINK's n w ont a t w ns g ow ng st ongly year-over year for these products. More advanced solutions including two-way messaging and richer channels need surrounding software solutions which typically are offered as a reccurring SaaS model.

The support for RCS on Apple phones is progressing and increased reach and demand for advanced messaging solutions across the Link footprint. As RCS and OTT support expands, opportunities across several use-cases emerges.

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 enhancing more value for clients.

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 1 848 million (NOK 1 796 million) or a reported growth of 3% versus the same period last year. Organic revenue in fixed currency was impacted by termination of low-value traffic in Global messaging inn line with last quarter and high comparables and declined 2% and impacted by positive currency translation effects in the quarter of NOK 22 million related to depreciation of NOK. Acquired growth in the quarter was NOK 58 million related to EZ4U in Portugal, Net Real Solutions in Spain and Reach-Data in the UK.

Reported organic Enterprise revenue growth was NOK 50 million, or 4% in fixed currency against high comparables same quarter last year and impacted by shift from low margin revenue to higher margin traffic and products. Central Europe continued to demonstrate double digit growth with a growth rate of 13% from both domestic and global clients. Northern and Western Europe growth momentum remained in the low single digit range impacted by isolated churn from bankruptcy in Western Europe and high comparables fourth quarter last year as the quarter inherently has a high share of marketing campaign events such as Black Week, Cyber Monday and Christmas sales.

Due to the termination of low-value traffic, the Global messaging segment reported a revenue decline of NOK 78 million, or negative 17% in fixed currency leading to total net retention reported at 93% while contribution from new clients was in line with historical levels supported by a strong backlog of new contracts signed over the last quarters. The termination of lowvalue traffic in Global Messaging impacted negative 8 percentage points to net retention, in line with last quarter.

Gross profit was reported at NOK 436 million (NOK 385 million) with a reported organic growth of NOK 30 million, or 8% in fixed currency and outpacing revenue growth from favourable revenue shift towards higher margin traffic and products. Organic gross profit growth in the Enterprise segment was 8% in fixed currency and was positively impacted by a resolution to the disputed operator price increase in Italy, with NOK 3 million in cost of goods sold accruals reversed the quarter. Acquired growth in the quarter was NOK 16 million related to EZ4U in Portugal, Net Real Solutions in Spain and Reach-Data in the UK.

Reported gross profit growth in the Global Messaging segment was NOK 3 million, or 10% in fixed currency. The conscious shift towards higher value traffic supports the gross margin improvement both year on year and compared to last quarter to 10% in the fourth quarter.

The total Group gross profit margin was reported at 23.6% (21.4%). The margin expansion in Global Messaging with a focus on higher value traffic, impacted positively total group margin by 1.1 percentage points. The reported Enterprise gross margin contributed with an improvement of 1.0 percentage points due to change in traffic and product mix.

LINK Mobility Holding Group ASA

Total operating expenses amounted to NOK 223 million (NOK 204 million) or an organic growth of 4% in stable currency compared to same quarter last year with negative currency impact of NOK 3 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 213 million (NOK 181 million), or an organic growth of 12% in stable currency compared to same quarter last year. In fixed currency the organic growth amounted to NOK 22 million driven by gross profit expansion of NOK 30 million partly offset by NOK 8 million growth in operating expenses. The Adjusted EBITDA margin improved from 10% to 12% as Gross Profit grew faster than the fixed cost base, displaying the scalability of the business model. The acquisitions of EZ4U in Portugal, Net Real Solutions in Spain and Reach-Data in the UK added NOK 9 million to adjusted EBITDA in the quarter.

Gross profit to adjusted EBITDA conversion reported at 49% (47%) and increased due to lower growth rate on operating expenses than gross profit.

EBITDA after non-recurring items was reported at NOK 162 million (NOK 135 million) after deduction of non-recurring cost of NOK 51 million (NOK 46 million) related to acquisitions, share option programs, restructuring and other non-recuring costs. The costs related to restructuring and other non-recurring was recorded at NOK 5 million (NOK 18 million) mainly related to severance agreements. In addition, NOK 18 million is related to a phishing incident in one of LINKs subsidiaries. An insurance claim related to the incident is in progress and not concluded. M&A costs were NOK 21 million in the quarter (NOK 3 million) due to recent M&A transactions and ongoing M&A processes. Costs related to share options was reported at NOK 8 million (NOK 26 million), the decline reflects the completion of an RSU program and maturity of remaining LTIP program.

Fourth quarter depreciation and amortization expense was NOK 82 million (NOK 91 million). The decrease compared to same quarter last year is mainly attributable to a catch-up effect related to completed projects at the end of the prior year of NOK 9 million. Depreciation and amortization is stable throughout FY2024 and is affected by periodic currency adjustments. Depreciation and amortization related to acquisitions is NOK 3 million.

Net financial expense was negative NOK 27 million (positive NOK 25 million. The net currency exchange gain in the quarter is NOK 14 million (NOK 46 million). The current quarter currency gain of NOK 15 million relates to the adjustment to the USD based earn-out receivable from divestment of Message Broadcast and was offset by NOK 1 million in net currency losses. The currency gain on adjusting the EUR bond loan outstanding had a greater effect and is representative of most of the foreign exchange gain reported in the prior year. Net interest expense is NOK 25 million (NOK 28 million). Net interest income is NOK 8 million higher and is offset by NOK 5 million in expensed loan set-up costs related to the component of LINK01 that was refinanced/cancelled in the current quarter. Net other financial expense is NOK 16 million (income NOK 7 million). The current year expense includes the call premium related to the refinancing of EUR 125 million of LINK01. The prior year comparative amount is a reversal of an earn-out accrual (NOK 7 million).

Balan sh t an ash flow

All comparative figures presented in the balance sheet and related to the US subsidiary Message Broadcast are p s nt n th sp t v balan sh t l n t ms as "ava labl fo sal "

Non-current assets amounted to NOK 6 633 million (NOK 6 372 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, Net Real Solutions, and Reach-Data in Q2 2024, Q3 2024, and Q4 2024, respectively. The acquisitions contribute NOK 200 million in the period. Other intangible assets are also revalued for currency but are also amortized an h n hav a l n ng p of l

Trade and other receivables amounted to NOK 1 610 million (NOK 1 380 million). The impact from changes in foreign n y x hang at s was pos t v NOK m ll on T a an oth vabl s n l s ll 's t an a n-out receivable from the sale of the US subsidiary (NOK 286 million); the estimated earn-out component of the receivable was first recognized in Q1 2024 and adjusted down in Q4 2024 based on the revenue performance of Message Broadcast during the year. Trade and other receivables from acquisitions contributes NOK 32 million; the remaining underlying development is related to improved collection.

Total ty amo nt to NOK 378 million (NOK 5 514 million) or 50% (47%) of balance sheet value. The net decrease was a result of the effect of the repurchase of LINK shares presented as treasury shares (NOK 345 million). This is partially offset by effects from foreign exchange and the positive net income year to date.

Long-term liabilities amounted to NOK 1 744 million (NOK 4 321 million). The largest components are external debt through a bond loan and deferred tax liability. External debt has declined comparatively after the cancellation of EUR 74 million in own bonds in the quarter. Deferred tax liabilities declined YoY by NOK 9 million; the decrease is related to amortization of intangible assets. External debt is subject to currency adjustment. 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.

Sho t-term liabilities, which include external debt and trade and other payables, amounted to NOK 3 600 million (NOK 1 846 million). Trade and other payables were reported at NOK 1 475 million (NOK 1 494 million) and include NOK 14 million from acquisitions. The impact from changes in foreign currency exchange rates was positive NOK 55 million, the underlying decrease is driven by organic growth and timing of payables. Short-term borrowings are representative of accrued interest on the bond loan is NOK 18 million (NOK 3 million) and the comparative increase is due to accrued interest on the LINK02 bond which falls due in January 2025. LINK01 (NOK 2 002 million) is now classified as shortterm. IFRS 16 lease liabilities (current) are slightly lower and have a declining profile as contracts approach maturity. Tax payable has increased by NOK 56 million, which includes a NOK 63 million accrual related to the sale of the US s bs a y

N t ash flow f om op at ng a t v t s was NOK m ll on (NOK m ll on) Coll t on of t a vabl s has improved comparatively despite a slight upswing in December. Trade and other payables are being settled faster as compared to the prior period. Bank deposit interest was received in the quarter and includes second-half 2024 interest on selected accounts; this is classified as other provisions with NOK 30 million, compared to NOK 18 million same period last year.

Net cash from investing activities was negative NOK 77 million (negative NOK 31 million). The net cash outflow related to the acquisition of Reach-Data was NOK 37 million. There were no acquisitions in the comparable period last year. Investment in CAPEX for both tangible and intangible asset has increased NOK 10 million comparatively. The increase over the prior period mainly attributable to increased investments in CPaaS solutions and investments related to recent acquisitions of NOK 3 million.

Net cash flow from financing activities was negative NOK 109 million (negative NOK 196 million). A total of NOK 36 million of LINK shares were repurchased during the quarter; there were no comparable transactions in the same period last year. Proceeds from borrowings is representative of the EUR 125 bond loan issued in the quarter; repayment of borrowings is representative of the EUR 125 million bond repayment plus call premium. Interest expense paid is comparatively lower as the outstanding bond loan has decreased and the remaining cash outflow was related to lease liabilities.

Total cash and cash equivalents were NOK 2 479 million at the end of the quarter (NOK 1 097 million).

Con ns onsol at n om stat m nt

Total op at ng v n s		0		0
t ost of s v n s		0	0
Pay oll an lat xp ns s
Oth op at ng xp ns s		00		0	0 0
R st t ng ost an oth ng t ms non				0	0
Sha bas omp nsat on		0
xp ns s lat to M		0			0
at on an amo t at on p			0
Impa m nt ost
N t
n y x hang ga ns (loss s) N t nt st xp ns			0	0
N t oth f nan al n om ( xp ns s)		0			00
In om tax
P of t (loss) f om s ont n op at ons	0			0
a n ngs (loss) p sha f om ont n ng op at ons		0	0	0	0
l t (loss) a n ngs p sha f om ont n ng op at ons		0	0	0	0
a n ngs (loss) p sha f om s ont n op at ons		0	0 0	0	0 0
l t (loss) a n ngs p sha f om s ont n op at ons		0	0 0	0	0 0

Condensed consolidated statement of comprehensive income

NOK '000	Q4 2024	Q4 2023	YID 2024	YELD 2023
Profit (loss) for the period	-80 244	37 413	255 483	67 282
Iotal effect - foreign exchange	-27 054	-116 828	-43 032	195 641
Gains and losses net investment hedge	-2 898	235	-52 678	-69 037
Tax on OCI that may be reclassified to P&L	637	-272	11 589	15 188
OCI that may be reclassified to P&L	-29 315	-115 864	-84 120	141 793
Actuarial gains and losses	-1 821	-1 757	-1 821	-1 757
OCI that will not be reclassified to P&L	-1 821	-1 757	-1 821	-1 757
Total Other Comprehensive Income (OCI)	-31 136	-117 622	-85 941	140 036
Total Comprehensive Income	-111 380	-80 209	169 542	207 318

Condensed consolidated statement of financial position

oo w ll	0	0
Oth ntang bl ass ts		0
R ght of s ass ts
pm nt an f xt s		0
f tax ass ts	0
Inv stm nt n bon s
Oth long t m vabl s	0
T a an oth vabl s	0 0	0
Cash an ash val nts	0	0
C nt ass ts h l as ava labl fo sal		0
Sha hol ty s		0
Long t m bo ow ngs	0	00 0
L as l ab l t s	0
f tax l ab l t s	0
Oth long t m l ab l t s	0 0
Bo ow ngs sho t t m	0
L as l ab l t s
T a an oth payabl s	00
Tax payabl		0
Sho t t m l ab l t s h l as ava labl fo sal

Condensed consolidated statement of changes in equity

YTD Q4 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	1	524 306	-378 434	-303 705	5 514 093
Changes in Net Income						255 483		255 483
Total Other Comprehensive Income (OCI)						-85 941		-85 941
Total Comprehensive Income		1		1	1	169 542		169 542
Changes due to issue of stock		8	14 415					14 423
Changes due to repayment of equity				-344 574				-344 574
Share based payment					24 691			24 691
Closing Balance	9	1 593	5 684 756	-344 574	548 996	-208 893	-303 705	5 378 174

YTD Q4 FY23 ('000 NOK)	Note	Share capital	Share premium	Other equity	Retained earnings	Other reserves	Total equity
Total Opening Balance		1 579	5 667 588	140 523	-473 456	-110 784	5 225 451
Changes in Net Income					67 282		67 282
Total Other Comprehensive Income (OCI)				-104 176	237 019	7 193	140 036
Total Comprehensive Income		I		-104 176	304 302	7 193	207 318
Changes due to issue of stock		6	2 752				2 759
Share based payment				78 565			78 565
Closing Balance	ರಿ	1 585	5 670 341	114 912	-169 154	-103 591	5 514 093

Condensed consolidated statement of cash flows

Tax s pa			0
nan n om ( xp ns )			0
p at on an amo t at on		0	0 0
mploy b n f t sha bas paym nts
N t loss s (ga ns) f om sposals			0
Chang n oth p ov s ons				0
Chang n t a an oth vabl s	0	0	0	0 0
Chang n t a an oth payabl s				0
Paym nt fo pm nt an f xt s			0
Paym nt fo ntang bl ass ts		0		0 0
P o s f om sal s of pm nt an f xt s			0
Paym nt fo a s t on of s bs a y n t of ash
sposal of s bs a y
of sha s P o s on ss		0
R paym nt of ty	0
s f om bo ow ngs P o
R paym nt of bo ow ngs		0		0
Int st pa	0	0		0
P n pal l m nts of l as paym nts
Cash an val nts at b g nn ng of p o	0	0	0
ff t of fo gn x hang at hang s		0	0
L ss Cash an val nts at n of th p o (h l fo sal )

Selected notes to the accounts

Note 1 – General information

The Board of Directors approved the condensed interim financial statements for the three months ended 31 December 2024 for publication on 5 February 2025. 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 on of op 's l a ng CPaaS providers within mobile communication, specializing in messaging and digital services. Headquartered in Oslo, Norway, the Group has 649 employees and operates in 18 European countries and 2 countries in LATAM.

Note 2 – Basis for preparation and significant accounting policies

The consolidated condensed interim financial statements have been prepared in accordance with Int nat onal nan al R po t ng Stan a s (I RS) I S "Int m nan al R po t ng " Th on ns interim financial statements do not include all information and disclosures required in the annual financial stat m nt an sho l b a n a o an w th th o p's ann al po t fo 0 wh h has b n 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 ass ss ng mpa m nt ass ts a g o p nto ash g n at ng n ts (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 nat of th sk b ng h g an how th nt ty w ll ass ss th h g ng nst m nt's ff t v n ss n offs tt ng th xpos to hang n th h g t m's fa val of ash flows att b tabl to th h g sk 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.

H g lat onsh ps that m t th m nts fo h g a o nt ng a a o nt fo n th o p'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 nt p tat ons ff t v f om 0 Jan a y 0 hav ha a s gn f ant mpa t on th o p's onsol at 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 v n ) an a st BIT n f n t onal op at ng s gm nts to th Boa of to s (th o p's h f operating decision makers). While LINK uses all four measures to analyze p fo man th o p's st at gy 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 (including subsidiaries in Columbia and Mexico), 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.

Whol sal /agg gato b s n ss s f n as an op at ng n t w th n LINK's n st y an that s 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	Q4 2024	Q4 2023	YID 2024	YO 22023
Northern Europe	429 091	420 795	1 535 959	1 489 934
Central Europe	448 395	392 017	1 689 181	1 369 426
Western Europe	592 230	536 420	2 105 343	1 842 380
Global Messaging	378 763	446 590	1 663 324	1 580 386
Total revenues	1 848 480	1 795 821	6 993 807	6 282 126

Gross profit by segment	Q4 2024	Q4 2023	YO 2024	YOU DE 2012-09-20
Northern Europe	113 337	112 261	426 743	409 637
Central Europe	132 223	106 349	446 637	373 343
Western Europe	152 454	132 484	518 732	448 403
Global Messaging	38 095	33 755	135 529	116 302
Total gross profit	436 110	384 849	1 527 641	1 347 685

Adj. EBITDA by segment	Q4 2024	Q4 2023	YID 2024	YID 2023
Northern Europe	74 829	70 745	271 483	256 367
Central Europe	93 214	72 001	309 030	250 595
Western Europe	80 059	69 751	269 478	222 469
Global Messaging	26 853	22 246	82 298	74 352
Group Costs	-61 610	-53 755	-214 320	-190 660
Total adjusted EBITDA	213 345	180 988	717 970	613 121

Reconciliation of adjusted EBITDA to Group profit (loss) before income tax	Q4 2024	Q4 2023	Y TD 2024	YID 2023
Adjusted EBITDA	213 345	180 988	717 970	613 121
Non-recurring items	-51 176	-46 378	-119 312	-135 269
Depreciation and amortization	-82 354	-90 796	-334 189	-337 535
Operating profit	79 815	43 814	264 468	140 317
Finance income (expense)	-26 568	24 585	-43 370	-89 345
Profit (loss) before income tax	53 246	68 399	221 098	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 31 December 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. As of 31 December 2024, LINK does not own any of its senior unsecured fixed rate bond issue.

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

Non-current assets	YTD 2024	YTD 2023
Investment in bonds		112 405
Total	I	112 405

Current assets	YTD 2024	YID 2023
Trade receivables	1 072 151	1 258 454
Unbilled revenue	188 110	173 563
Earn-out and SPA receivable	285 877
Other short-term receivables	63 886	- 51 604
Total	1 610 024	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 USD 14.7 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.

On 29 October 2024, LINK successfully placed a EUR 125 million senior unsecured bond due 29 October 0 ("LINK0 ") Th bon w ll hav a o pon of -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 ") mb 0 wh h was an ll Th UR m ll on of LINK0 bon s h l by LINK were also cancelled. Cancellations were executed on 23 October 2024.

The nominal outstanding amount in LINK01 is EUR 171 million; this is classified as a current liability.

Non-current financial liabilities	YTD 2024	YIDE 2023
Bond loan	1 457 521	4 008 320
Lease liability	19 608	31 421
Other long-term liabilities	10 037	6 834
Total	1 487 166	4 046 575

Current liabilities	YID 2024	YETDIZOZKE
Bond loan	2 001 760	l
Lease liability	11 948	14 549
Debt to financial institutions/bond loan*	17 895	2 741
Total	2 031 604	17 290

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

Note 7 – Options

In Q4 2024, an expense of NOK 8 million was recognized in relation to the LTIP, Chairman of Board, and employee option programs. The total expense is comprised of program costs of NOK 7.8 million and increased social security tax accrual of NOK 0.2 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:

	Q4 2024	Q4 2073	Y 11 22024	YED 2023
Equipment and fixtures	3 437	1 107	9 666	7 720
Right-of-use-assets	3 103	4 482	14 428	17 356
Intangible assets acquisitions*	59 083	56 338	228 713	221 549
Intangible assets - subsidiaries **	16 730	28 870	81 382	90 910
D&A from cont. operations	82 354	90 796	334 189	337 535
D&A from discont. operations		6 951	1	24 857
Total depreciation and amortization	82 354	97 747	334 189	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

Th o p's a n ngs p sha s al lat as b low

NOK '000			Q4 2024
Net (loss) income from continuing operations	48 590	53 180	171 458	38 356
Net (loss) income from discontinued operations	-128 834	-15 767	84 025	28 926
Owners of LINK Mobility Group Holding ASA	-80-244	37 413	255 483	67 282

Weighted average number of ordinary shares (basic)	Q4 2024	Q4 2023	YID 2024	YED 2023
Issued ordinary shares at 01 January	297 059	295 890	297 059	295 890
Effect of shares issued (05 June 2023)				175
Effect of shares issued (08 November 2023)		909		909
Effect of shares issued (22 December 2023)		85		85
Effect of shares issued (04 April 2024)			1 647
Weighted average number of ordinary shares	297 059	296 885	298 706	297 059
Basic earnings (loss) per share from total operations	(0,27)	0,13	0,86	0,23
Basic earnings (loss) per share from continuing operations	0,16	0,18	0,57	0.13
Basic earnings (loss) per share from discontinued operations	(0,43)	(0,05)	0,28	0,10
Weighted average number of ordinary shares (diluted)	Q4 2024	Q4 2073	YID 2024	YETDI 2020
Weighted average number of ordinary shares (basic)	297 059	296 885	298 706	297 059
Effect of share options on issue	8 209	8 478	8 209	8 478
Weighted average number of ordinary shares (diluted)	305 268	305 362	306 916	305 537
Diluted earnings (loss) per share from total operations	(0,27)	0.12	0,83	0,22
Diluted (loss) earnings per share from continuing operations	0,16	0,17	0,56	0,13
Diluted (loss) earnings per share from discontinued operations	(0,43)	(0,05)	0,27	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 v n
oss p of t
st BIT	0
Op at ng p of t (loss)	0
nan n om ( xp ns )
P of t (loss) b fo n om tax
In om tax

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):

P of t (loss) f om M ssag B oa ast LLC			0
C n y opt on p m m
L gal f s	0		0
amo t at on manag m nt f x ss val an nt ompany loan nt st
P of t (loss) f om op at ons b fo s ont n n om tax
In om tax (amo t at on of f tax l ab l ty)	0
In om tax xp ns lat to sposal		0 0
a n on sposal

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:

M ssag B oa ast LLC		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
a val of ont ng nt ons at on
Total sposal ons at on
Ca y ng amo nt of n t ass ts sol
a n on sal b fo n om tax an lass f at on of fo n y t anslat on gn s v
R lass f at on of fo n y t anslat on gn s v	0
In om tax xp ns on ga n	0 0
a n on sal aft n om tax
a val a stm nt of ont ng nt ons at on mb st

* The amount presented here is representative of the cash amount received upon close of the SPA.

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 will be recognized as a financial asset at fair value through the profit or loss.

At the beginning of the year, an earn-out accrual for USD 27 million was made based on estimated performance for FY2024. Based on actual performance in Message Broadcast at the end of FY2024, the estimated earn-out has been revised to USD 14.7 million. The reduction is presented in the table above as fair value adjustment of contingent consideration.

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

oo w ll
Oth ntang bl ass ts

Note 11 – Business combinations

Acquisitions during the period

C os ty Lay Inv st ga o Com n a o L a (h aft U)	P ov of mob l m ssag ng s v s an mob l sol t ons	May 0	00	LINK Mob l ty Spa n SLU
N t R al Sol t ons S L (h aft NRS)	P ov of mob l m ssag ng s v s an mob l sol t ons	S pt mb 0	00	LINK Mob l ty Spa n SLU
R a h ata Lt (h aft R a h)	P ov of mob l m ssag ng s v s an mob l sol t ons	0 O tob 0	00	LINK Mob l ty UK L m t

Acquisition of EZ4U

On 28 May 2024, LINK Mobility Group AS acquired the Portuguese company EZ4U. The acquisition xpan s LINK's g og aph al a h n op to Po t gal an off s n m o s ps ll ng oppo t n t s 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 m ssag ng w th fo s on SMS RCS Whats pp ma l IVR an hatbots U's softwa platfo m an 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.

Acquisition of Reach

On 30 October 2024, LINK Mobility UK Limited acquired Reach, headquartered in Doncaster, United Kingdom. This acquisition strengthens LINK's foothold in the UK market.

The purchase price is cash upon closing.

Reach was founded in 2002 and provides businesses with direct global communication routes. The company has specialized in cost-effective SMS marketing solutions by leveraging their user-friendly, bulk SMS messaging, platform.

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

R v n
BIT
N t p of t	0

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

R v n	00
BIT

Total consideration:

Cash	0
a n o t )	0

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.

NRS

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.

Reach

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 relationships as the major asset.

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.

C stom lat onsh ps	0 0		0
T hnology
T a ma k
pm nt an f xt s	0	0
Oth nt ass ts non
T a an oth vabl s			0
Cash an ash val nts			0
f tax l ab l ty
T a an oth payabl s

Goodwill

Total ons at on	0	0
a val of nt f abl n t ass ts a			0

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.

Acquisition related expenses

(Amounts in NOK 1 000) EZ4U NRS Reach
Total		1 343

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

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 and goodwill as major assets.

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.

LT RN TIV P R ORM NC M SUR S (" PM S")

The financial information in this report is prepared under International Financial Reporting Standards (I RS) as a opt by th U To nhan th n stan ng of LINK's p fo man th o p p s nts s v al alt nat v p fo man m as s (" PM's") n PM s f n by th op an S t s an 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 m as p ov s s f l nfo mat on ga ng th o p's ab l ty to s v bt an to f n ap tal 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	Q4 2024	Q4 2023	YTD 2024	YTD 2023
Operating profit (loss, ("EBIT")	79 815	43 814	264 468	140 317
Depreciation and amortization	82 354	90 796	334 189	337 535
EBITDA	162 169	134 610	598 657	477 853
Add: Restructuring cost	22 641	17 985	38 605	29 014
Add: Share based compensation	7 706	25 871	41 994	98 177
Add: Expenses related to acquisitions	20 829	2 521	38 713	8 078
Adjusted EBITDA	213 345	180 988	717 970	613 121
Operating revenues	1 848 480	1 795 821	6 993 807	6 282 126
Adjusted EBITDA	213 345	180 988	717 970	613 121
Adjusted EBITDA margin	11,5 %	10,1 %	10,3 %	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 l ss ash an ash val nts Payabl s ll 's ts hol ba k an a n-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	Q4 2024	YTD 2023
Bond Ioan - Principal	3 440 956	4 073 812
IFRS 16 liabilities	31 557	51 927
Less cash	-2 478 701	-1 108 232
Less: Bond assets		l
Net debt	993 811	3 017 506
LTM adjusted EBITDA (proforma)	736 567	782 186
Net debt/LTM adjusted EBITDA	1,3	3,9

* Calculated according to bond agreement

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