The group's unaudited consolidated total revenue decreased in the third quarter of 2024 by 9% year-over-year to €3,604 thousand (Q3 2023: €3,947 thousand). Unaudited consolidated total revenues for the first nine months of 2024 increased by 6% to €11,413 thousand (9m 2023: €10,726 thousand).
| Quarter (in thousands) | Q3 2024 | Q3 2023 | Change |
| Textmagic SMS platform | €3,444* | €3,780 | -9%* |
| Voog website and e-commerce platform | €160 | €167 | -4% |
| Total unaudited consolidated revenue | €3,604 | €3,947 | -9% |
* Textmagic SMS platforms revenue is affected by foreign exchange rates. If exchange rates had been the same as in 2023, SMS platform revenue in Q3 2024 would have been €3,447 thousand.
| January - September (in thousands) | 9M 2024 | 9M 2023 | Change |
| Textmagic SMS platform | €10,934* | €10,499 | +4%* |
| Voog website and e-commerce platform | €479 | €227 | - |
| Total unaudited consolidated revenue | €11,413 | €10,726 | +6% |
* Textmagic SMS platforms revenue is affected by foreign exchange rates. If exchange rates had been the same as in 2023, SMS platform revenue in 9M 2024 would have been €10,907 thousand.
Textmagic SMS platform's sales results for Q3 2024 and 9 months
| Quarter | Q3 2024 | Q3 2023 | Change |
| Volume of SMS messages (thousand pcs) | 61,014 | 58,513 | +4% |
| Active users* | 20,254 | 26,072 | -22% |
| Average revenue per user (ARPU), 3 months** | €170 | €145 | +17% |
* 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.
| January - September | 9M 2024 | 9M 2023 | Change |
| Volume of SMS messages (thousand pcs) | 189,379 | 194,922 | -3% |
| Active users* | 25,049 | 34,188 | -27% |
| Average revenue per user (ARPU), 9 months** | €437 | €307 | +42% |
* 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.
In the third quarter, the volume of SMS messages sent increased by 4% compared to the previous year, but over the full nine months, the volume decreased by 3%. The main reasons for the decline continue to be U.S. regulations that restrict the sending of bulk SMS messages from unregistered advertising campaigns, as well as customers' financial situation and price sensitivity. The decrease in revenue in the third quarter is related to both the end of the impact of price increases and a decline in the number of active users.
Q3 2024 Overview
Development activities on the Textmagic platform in the third quarter focused on extending the value proposition and functionality to make the product more attractive to new target groups.
In September, the local audit of our UK subsidiary for the year 2023 was completed, resulting in a disclaimer of opinion. During the procedures, it became apparent that due to the specifics of the platform's billing, the high volume of transactions, and the small amounts of individual transactions, the audit firm lacked the necessary control mechanisms to complete the procedures within a reasonable time and cost, and to obtain sufficient assurance. This event does not affect the consolidated financial statements of TextMagic AS for 2023.
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 share capital reduction was registered in the Commercial Register on August 26, 2024. In accordance with the deadlines set forth by the Commercial Code, the payout is scheduled for one week from November 27, 2024.
Additional information:
Getter Grünmann
TextMagic AS, CFO
investor@textmagic.biz
https://investor.textmagic.com/
