TextMagic AS 2025 6 months consolidated unaudited interim report

In the first half of 2025, revenue amounted to €7,115 thousand (H1 2024: €7,809 thousand). The decline was mainly due to a more competitive pricing strategy that was implemented on the Textmagic platform. EBITDA was €2,581 thousand (H1 2024: €3,149 thousand), and the operating loss totaled to €123 thousand (H1 2024: operating profit of €1,097 thousand). Profitability was negatively affected by an increase in amortization expenses of €652 thousand, resulting from the higher volume of...

Tallinn, 12/08/2025 (informazione.news - comunicati stampa - economia)

In the first half of 2025, revenue amounted to €7,115 thousand (H1 2024: €7,809 thousand). The decline was mainly due to a more competitive pricing strategy that was implemented on the Textmagic platform. EBITDA was €2,581 thousand (H1 2024: €3,149 thousand), and the operating loss totaled to €123 thousand (H1 2024: operating profit of €1,097 thousand). Profitability was negatively affected by an increase in amortization expenses of €652 thousand, resulting from the higher volume of development activities in previous periods with the goal of improving the value proposition.

Although sales revenue has declined, we have seen growth in usage volumes since March on the Textmagic platform - in the second quarter of 2025, 7% more SMS messages were sent than in the same period last year. Acquiring new customers in the US market has become more difficult due to regulations, while in the UK and Australia we are seeing a growth trend in new users.

Since 2024, Textmagic platform's development has focused on expanding the product’s value proposition by adding features and communicaton channels that support business interactions. In the first quarter of 2025, the rapid development pace slowed down, because the team was downsized to optimize development activities and improve cost efficiency.

In the first quarter of 2025, new communication channels were added to the Textmagic platform, including Business Instagram and Facebook Messenger, allowing users to manage a wide range of customer inquiries and information exchanges in a single environment. In June, we launched an email campaign feature to offer our clients a more comprehensive solution for marketing and customer communication in addition to SMS. Email functionality opens up new opportunities to expand the customer base.

Operating profit decreased due to a decline in sales revenue and an increase in the amortization of intangible assets. The increase in depreciation was due to higher capitalized development costs in recent years. Labor and operating expenses decreased in the first half of 2025 compared to the same period in 2024. The EBITDA margin was 36% (H1 2024: 40%), confirming that the company's cash flow from operating activities remains strong.

Textmagic SMS platform’s sales results

Despite the recovery in usage volumes, revenue has still decreased due to various factors. The main impact comes from offering less expensive plans and free usage options. U.S. regulations remain a significant reason for the decline, as they restrict mass messaging for unregistered marketing campaigns. Additionally, revenue has been affected by currency exchange rates, as well as customers’ financial situations and price sensitivity.

 Additional information:
        Getter Grünmann
         TextMagic AS, CFO
         investor@textmagic.biz
         https://investor.textmagic.com/

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF CASH FLOWS

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attachments