TextMagic AS is the parent company of the Group, which maintains a portfolio of B2B (business-to-business) software products. The group has three subsidiaries: TextMagic Ltd, the sales unit in the United Kingdom; TM Marketing Ops Srl, the marketing unit in Romania; and Edicy OÜ, an Estonian company that operates the Voog platform.
The group's unaudited consolidated total revenue increased in the second quarter of 2024 by 8% year-over-year to €3,782 thousand (Q2 2023: €3,507 thousand). Unaudited consolidated total revenues for the first six months of 2024 increased by 15% to €7,809 thousand (H1 2023: €6,779 thousand). On June 1, 2023, the group acquired a 100% subsidiary Edicy OÜ, that manages the Voog website and e-commerce platform. The financial results of the Voog platform have been consolidated from the date of acquisition.
| Quarter (in thousands) | Q2 2024 | Q2 2023 | Change |
| Textmagic SMS platform | €3,621* | €3,447 | +5 %* |
| Voog website and e-commerce platform | €161 | €60 | - |
| Total unaudited consolidated revenue | €3,782 | €3,507 | +8 % |
* Textmagic SMS platforms revenue is affected by foreign exchange rates. If exchange rates had been the same as in 2023, SMS platform revenue in Q2 2024 would have been €3,577 thousand and the growth rate would have been 4%.
| Half year (in thousands) | H1 2024 | H1 2023 | Change |
| Textmagic SMS platform | €7,490* | €6,719 | +11 %* |
| Voog website and e-commerce platform | €319 | €60 | - |
| Total unaudited consolidated revenue | €7,809 | €6,779 | +15 % |
* Textmagic SMS platforms revenue is affected by foreign exchange rates. If exchange rates had been the same as in 2023, SMS platform revenue in H1 2024 would have been €7,460 thousand and the growth rate would have been 11%.
Textmagic SMS platform's sales results for Q2 2024 and 6 months
| Quarter | Q2 2024 | Q2 2023 | Change |
| Volume of SMS messages (thousand pcs) | 60,852 | 63,898 | -5 % |
| Active users* | 20,852 | 29,240 | -29 % |
| Average revenue per user (ARPU), 3 months** | €174 | €118 | +47 % |
* 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.
| Half year | H1 2024 | H1 2023 | Change |
| Volume of SMS messages (thousand pcs) | 128,365 | 136,409 | -6 % |
| Active users* | 23,499 | 32,611 | -28 % |
| Average revenue per user (ARPU), 6 months** | €319 | €206 | +55 % |
* 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 volume of SMS messages sent decreased by 5% year-on-year in the second quarter and by 6% in the first half of the year. The main reasons for the decline continue to be U.S. regulations restricting the sending of bulk SMS messages from unregistered advertising campaigns and the financial situation of customers.
Average revenue per user (ARPU) increased by 47% compared to the second quarter of last year. The increase in ARPU was driven by a price increase in May, 2023 and the closure of low-volume customer accounts affected by U.S. regulatory restrictions and price sensitivity. As the number of active users declined, the quality of the customer portfolio improved, which is reflected in the ARPU growth. There will be no impact from price increases in the coming quarters.
Distribution to shareholders
The shareholders of TextMagic AS decided in the second quarter of 2024 to reduce the share capital and make a payout of EUR 0.59 per share, for a total of nearly €5 million. The payout will be made at the end of 2024, in accordance with the deadlines set out in the Commercial Code.
Additional information:
Getter Grünmann
TextMagic AS, CFO
investor@textmagic.biz
https://investor.textmagic.com/
