TextMagic AS 2024 12 months consolidated unaudited interim report

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...

In 2024, 25/02/2025 (informazione.news - comunicati stampa - economia)

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.

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

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%).

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. 

 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