TextMagic AS 2025 6 months consolidated unaudited interim report

Core Insights - The company experienced a decline in revenue and profitability in the first half of 2025, primarily due to a competitive pricing strategy and increased amortization expenses [1][5][7] Financial Performance - Revenue for H1 2025 was €7,115 thousand, down from €7,809 thousand in H1 2024, representing a decrease of approximately 8.9% [1][5] - EBITDA decreased to €2,581 thousand in H1 2025 from €3,149 thousand in H1 2024, reflecting a decline of about 18.1% [1][5] - The operating loss for H1 2025 was €123 thousand, compared to an operating profit of €1,097 thousand in H1 2024 [1][5] - The EBITDA margin for H1 2025 was 36%, down from 40% in H1 2024, indicating a decrease in operational efficiency [5] User Engagement and Market Trends - Despite the revenue decline, there was a 7% increase in SMS message volumes sent on the Textmagic platform in Q2 2025 compared to the same period last year [2] - The company faced challenges in acquiring new customers in the US due to regulatory constraints, while experiencing growth in the UK and Australia [2] Product Development and Features - Since 2024, the development focus has been on enhancing the product's value proposition by adding new features and communication channels [3] - In Q1 2025, new communication channels such as Business Instagram and Facebook Messenger were integrated into the Textmagic platform, along with the launch of an email campaign feature in June 2025 [4] Operational Adjustments - The company downsized its development team in early 2025 to optimize activities and improve cost efficiency, which contributed to a slowdown in the pace of development [3] Key Metrics - Active users on the Textmagic SMS platform decreased by 9% to 21,307 in H1 2025 from 23,499 in H1 2024 [6] - The average revenue per user (ARPU) remained stable at €319 over the six-month period [6]