Sinch, a provider of cloud-based telecom services, reported an adjusted EBITDA result of SEK 240 million for the first quarter of 2021.
Analysts had forecast EBITDA of 299 million SEK, according to Infront estimates by seven analysts.
Adjusted earnings before interest, taxes, depreciation and amortization increased by 30 percent, but excluding currency effects and costs of the incentive programs, the increase was 52 percent, the company said.
Items affecting comparability are 47.8 million SEK and when included, the EBITDA score is 193 million SEK.
Here, the projections for the items affecting comparability were -34.6 million SEK and the EBITDA results of 264 million SEK.
Gross profit increased by 84% to SEK 820 million. Here, the forecast was 792 million SEK.
Net sales increased by 106% to 3,349 million SEK (1624). Organic growth in local currency reached 38 percent. The median forecast was sales of 2,992 million SEK, according to Infront.
Weight of investments and currency impacts
Investments and currency influences weighed the growth in Sinch’s EBITDA adjusted earnings during the first quarter.
This trend is expected to continue in the short term, as Sinchs CEO Oscar Werner indicated in their first quarter report.
“During the first quarter, we showed continued strong growth in gross profit with EBITDA increasing less rapidly due to exchange rate changes, incentive program costs, and investments in future growth. We expect this trend to continue in the short term as we invest in our scalability. To extract the synergies, the acquired business also has less margin than the rest of Sinch, ”he wrote in the report.