In 2024, TextMagic Group’s revenue amounted to €15,175 thousand, increasing by €205 thousand compared to 2023 (2023: €14,970 thousand). The operating profit amounted to €1,803 thousand (2023: €2,562 thousand), and the EBITDA figure was €6,145 thousand (2023: €6,232 thousand).
TextMagic Group has considered changing regulations, market dynamics, competitive offerings, and customer needs in shaping its growth strategies. To ensure sustainable growth, we continue to invest in software development and have temporarily expanded our product development teams to accelerate progress and bring new solutions to market faster while maintaining a competitive edge. The expansion of Textmagic’s product development team began in 2023 to increase development capacity and was completed in 2024, allowing for the implementation of significant updates.
In 2024, we launched a solution designed for high-volume messaging customers who want to benefit from the convenience of the Textmagic platform while continuing to use their existing telecommunications provider. Additionally, we extended the platform’s communication channels, as well as user and workflow management capabilities. We also improved the verification process for U.S. customers to accelerate campaign registration in compliance with regulatory requirements. In the first quarter of 2025, email and campaign management functionality will be introduced. These new features will help improve the product’s value proposition and expand its customer base.
Group unaudited key figures of 2024
| 2024 | 2023 | Change | |
| Revenue | €15.18 M | €14.97 M | +1 % |
| EBITDA | €6.15 M | €6.23 M | -1 % |
| Operating profit | €1.80 M | €2.56 M | -30 % |
The Group’s operating profit for 2024 decreased compared to the prior year, primarily due to higher amortization of intangible assets, resulting from increased capitalized development costs. In addition the increase in staff and operating expenses also had an impact. The EBITDA figure, which eliminates the effect of amortization, decreased by 1%. The EBITDA margin was 41% (2023: 42%), confirming the continued strong cash flow generation of the business.
Textmagic SMS platform’s sales results
| 2024 | 2023 | Change | |
| Unaudited revenue (thousand) | €14,533 | €14,580 | 0 % |
| Volume of SMS messages (thousand pcs) | 252,784 | 264,908 | -5 % |
| Active users* | 26,431 | 35,410 | -25 % |
| Average revenue per user (ARPU, 12 months)** | €549 | €412 | +33 % |
* An active user is any unique paying customer who has used Textmagic SMS platform services during the reporting period.
**ARPU is calculated as Unaudited revenue / Active users.
The revenue distribution of the TextMagic platform is similar to the prior year, with the key markets – the USA, Canada, and the United Kingdom – continuing to account for nearly 90% of total revenue. The U.S. and Canadian markets together accounted for 64% of total revenue (2023: 67%). The share of revenue from the United Kingdom increased to 24% (2023: 22%). The Australian market accounted for 6% of revenue (2023: 5%), while the European Union’s share remained at 3% (2023: 3%). All other regions collectively made up the remaining 3% of revenue (2023: 3%).
Key objectives of the Group for 2025
In 2025, the Group will focus primarily on marketing the Textmagic platform’s extended functionality and expanding its customer base to regain growth that has slowed in recent years. A key focus will be on maximizing customer satisfaction and attracting new customers to support sustainable growth.
In the coming period, the development team will be optimized and costs reduced as the rapid development phase has come to an end and the focus shifts to cost efficiency. The development team was reduced in the first quarter of 2025.
The goal is to increase both sales and profits by providing businesses with reliable and powerful solutions for fast, convenient and effective marketing and customer communication.
TextMagic AS’s consolidated unaudited interim report for the 12 months of 2024 is attached to the release in PDF format.
Additional information:
Getter Grünmann
TextMagic AS, CFO
[email protected]
https://investor.textmagic.com/
CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS FOR 12 MONTHS OF 2024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| (in thousands of euros) | 31.12.2024 | 30.06.2024 | 31.12.2023 | 30.06.2023 |
| Non-current assets | ||||
| Property, plant and equipment | 581 | 102 | 105 | 172 |
| Intangible assets and goodwill | 32,972 | 32,921 | 32,854 | 54,496 |
| Total non-current assets | 33,553 | 33,023 | 32,959 | 54,668 |
| Current assets | ||||
| Trade and other receivables | 22 | 90 | 24 | 24 |
| Prepayments | 165 | 200 | 231 | 157 |
| Financial Investments | 0 | 3,500 | 2,500 | 0 |
| Cash and cash equivalents | 3,432 | 4,229 | 3,900 | 5,608 |
| Total current assets | 3,619 | 8,019 | 6,655 | 5,789 |
| TOTAL ASSETS | 37,172 | 41,042 | 39,614 | 60,457 |
| Current Liabilities | ||||
| Current tax liabilities | 270 | 411 | 232 | 196 |
| Trade and other payables | 913 | 882 | 791 | 875 |
| Lease liabilities | 107 | 0 | 0 | 0 |
| Contract liabilities | 1,669 | 1,668 | 1,659 | 1,737 |
| Other provisions | 384 | 679 | 1,117 | 914 |
| Total current liabilities | 3,343 | 3,640 | 3,799 | 3,722 |
| Long-Term Liabilities | ||||
| Lease liabilities | 309 | 0 | 0 | 0 |
| Total long-term liabilities | 309 | 0 | 0 | 0 |
| Total liabilities | 3,652 | 3,640 | 3,799 | 3,722 |
| Equity | ||||
| Share capital | 850 | 33,575 | 850 | 850 |
| Share premium | 141 | 141 | 51,242 | 51,242 |
| Reserve capital | 85 | 85 | 85 | 85 |
| Voluntary reserve | 27,710 | 0 | 0 | 0 |
| Other reserve | 2,696 | 2,360 | 2,035 | 1,659 |
| Foreign currency translation reserve | (35) | (13) | (21) | (21) |
| Retained earnings | 2,073 | 1,254 | (18,376) | 2,920 |
| Equity attributable to owners of the parent | 33,520 | 37,402 | 35,815 | 56,735 |
| Total equity | 33,520 | 37,402 | 35,815 | 56,735 |
| TOTAL EQUITY AND LIABILITIES | 37,172 | 41,042 | 39,614 | 60,457 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| (in thousands of euros) | 01.01.2024-31.12.2024 | 01.07.2024-31.12.2024 | 01.01.2023-31.12.2023 | 01.07.2023-31.12.2023 |
| Revenue | 15,175 | 7,366 | 14,970 | 8,192 |
| Other income | 175 | 116 | 93 | 53 |
| Goods, raw materials and services | (4,764) | (2,368) | (4,786) | (2,502) |
| Other operating expenses | (1,887) | (837) | (1,715) | (864) |
| Work performed by the entity and capitalized | 4,327 | 2,244 | 2,651 | 1,567 |
| Employee expenses | (6,871) | (3,525) | (4,801) | (2,809) |
| Depreciation, amortization and impairment of non-current assets | (4,342) | (2,290) | (3,670) | (1,913) |
| Other expenses | (10) | 0 | (180) | (49) |
| Operating profit (loss) | 1,803 | 706 | 2,562 | 1,675 |
| Discontinued Operations | 0 | 0 | (23,392) | (23,211) |
| Financial Income | 258 | 106 | 183 | 127 |
| Profit (loss) before tax | 2,061 | 812 | (20,647) | (21,409) |
| Income tax | (8) | (4) | (10) | (5) |
| Profit (loss) for the period | 2,053 | 808 | (20,657) | (21,414) |
|
Other comprehensive income |
|
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| Items that are or may be reclassified subsequently to profit or loss | ||||
| Foreign currency translation differences | (14) | (22) | 20 | 0 |
| Other comprehensive income for the period | (14) | (22) | 20 | 0 |
| Total comprehensive income for the period | 2,039 | 786 | (20,637) | (21,414) |
CONSOLIDATED STATEMENT OF CASH FLOWS
| (in thousand euros) | 01.01.2024-31.12.2024 | 01.07.2024-31.12.2024 | 01.01.2023-31.12.2023 | 01.07.2023-31.12.2023 |
| Cash flows from operating activities | ||||
| Profit (loss) for the period – continuing operations | 2,053 | 808 | 2,735 | 1,797 |
| Adjustments for: | ||||
| Depreciation and amortization | 4,342 | 2,290 | 3,670 | 1,913 |
| Financial Income | (258) | (106) | (183) | (127) |
| Other adjustments | 318 | 149 | 489 | 278 |
| Total adjustments | 4,402 | 2,333 | 3,976 | 2,064 |
| Changes in trade and other receivables | 2 | 68 | (25) | 0 |
| Changes in contract liabilities | 10 | 1 | (96) | (78) |
| Changes in prepayments | 66 | 32 | (102) | (75) |
| Changes in trade and other payables | (573) | (406) | 519 | 194 |
| Cash flows from operating activities – continuing operations | 5,960 | 2,836 | 7,007 | 3,902 |
| Cash flows from operating activities – discontinued operations | 0 | 0 | (882) | (469) |
| Cash flows from operating activities | 5,960 | 2,836 | 6,125 | 3,433 |
|
Cash flows from investing activities |
||||
| Net cash flows from business combinations | 0 | 0 | (1,100) | 0 |
| Interest received | 258 | 106 | 183 | 127 |
| Fixed-term deposits | 2,500 | 3,500 | (2,500) | (2,500) |
| Acquisition of property, plant and equipment | (140) | (110) | (16) | (4) |
| Development expenditure | (3,962) | (2,037) | (2,278) | (1,495) |
| Cash flows from investing activities – continuing operations | (1,344) | 1,459 | (5,711) | (3,872) |
| Cash flows from investing activities – discontinued operations | 0 | 0 | (3,129) | (1,270) |
| Cash flows from investing activities | (1,344) | 1,459 | (8,840) | (5,142) |
|
Cash flows from financing activities |
||||
| Repayment of lease liabilities | (55) | (55) | 0 | 0 |
| Payouts to shareholders | (5,015) | (5,015) | (2,550) | 0 |
| Cash flows from financing activities – continuing operations | (5,070) | (5,070) | (2,550) | 0 |
| Cash flows from financing activities – discontinued operations | 0 | 0 | 0 | 0 |
| Cash flows from financing activities | (5,070) | (5,070) | (2,550) | 0 |
| TOTAL CASH FLOWS | (454) | (775) | (5,265) | (1,709) |
| Cash and cash equivalents at the beginning | 3,900 | 4,229 | 9 145 | 5,608 |
| Effect of movements in exchange rates on cash held | (14) | (22) | 20 | 1 |
| Cash and cash equivalents at the end | 3,432 | 3,432 | 3,900 | 3,900 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| (in thousands of euros) | Total equity attributable to owners of TextMagic AS | |||||||
| Share Capital | Share premium | Reserve capital | Voluntary reserve | Other reserve | Foreign currency translation reserve | Retained earnings | Total equity | |
| Balance at December 31, 2022 | 850 | 51,242 | 0 | 0 | 1,651 | (41) | 1,784 | 55,486 |
| Profit for the period | 0 | 0 | 0 | 0 | 0 | 0 | 757 | 757 |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 20 | 0 | 20 |
| Other changes in equity | 0 | 0 | 85 | 0 | 8 | 0 | 379 | 472 |
| Balance at June 30, 2023 | 85 | 51,242 | 85 | 0 | 1,659 | (21) | 2,920 | 56,735 |
| Loss for the period | 0 | 0 | 0 | 0 | 0 | 0 | (21,414) | (21,414) |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other changes in equity | 0 | 0 | 0 | 0 | 376 | 0 | 118 | 494 |
| Balance at December 31, 2023 | 850 | 51,242 | 85 | 0 | 2,035 | (21) | (18,376) | 35,815 |
| Profit for the period | 0 | 0 | 0 | 0 | 0 | 0 | 1,245 | 1,245 |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 8 | 0 | 8 |
| Covering loss | 0 | (18,376) | 0 | 0 | 0 | 0 | 18,376 | 0 |
| Other changes in equity | 32,725 | (32,725) | 0 | 0 | 325 | 0 | 9 | 334 |
| Balance at June 30, 2024 | 33,575 | 141 | 85 | 0 | 2,360 | (13) | 1,254 | 37,402 |
| Profit for the period | 0 | 0 | 0 | 0 | 0 | 0 | 808 | 808 |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | (22) | 0 | (22) |
| Transactions with shareholders | (5,015) | 0 | 0 | 0 | 0 | 0 | 0 | (5,015) |
| Other changes in equity | (27,710) | 0 | 0 | 27,710 | 336 | 0 | 11 | 347 |
| Balance at December 31, 2024 | 850 | 141 | 85 | 27,710 | 2,696 | (35) | 2,073 | 33,520 |
Attachments
- TextMagic AS_2024. aasta 12 kuu auditeerimata konsolideeritud vahearuanne
- TextMagic AS_2024 12 months consolidated unaudited interim report
