TextMagic AS's consolidated audited annual report for the financial year 2024
TextMagic Group’s revenue growth rate has slowed in recent years due to a combination of factors. In 2024, revenue increased by €0.21 million compared to 2023, reaching €15.18 million (2023: €14.97 million). The business focus in 2024 was to develop and expand the Textmagic platform to restore growth.
Textmagic has responded to regulatory changes in the U.S. as well as evolving market and customer dynamics by accelerating development efforts and temporarily expanding product development teams. In 2024, we launched a solution for high-volume messaging clients, enhanced the platform’s communication channels and user management features, and improved the verification process for U.S. customers. In the second quarter of 2025, email and campaign management capabilities will be added to strengthen the product’s value proposition and expand the customer base.
Groups’s key figures of 2024
| 2024 | 2023 | Change | |
| Revenue | €15.18 M | €14.97 M | +1 % |
| EBITDA | €6.15 M | €6.23 M | -1 % |
| Operating profit | €1.80 M | €2.56 M | -30 % |
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 operating cash flows.
Key objectives of the Group for 2025
In 2025, the Group will focus primarily on marketing the Textmagic platform's extended functionality and expanding its customer base. An important focus is also on maximizing the satisfaction of existing customers to support sustainable growth.
In the coming period, the development team will be optimized and costs reduced as the rapid development phase comes 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 modern tools for fast, convenient and effective marketing and customer communication.
TextMagic AS’s consolidated audited annual report for 2024 is attached to the announcement in PDF format.
There are no material differences with respect to the financial results of the audited consolidated annual report in comparison with the consolidated 12-month unaudited interim report published on February 25, 2025.
Additional information:
Getter Grünmann
TextMagic AS, CFO
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CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR 2024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| (in thousands of euros) | 31.12.2024 | 31.12.2023 |
| Non-current assets | ||
| Property, plant and equipment | 581 | 105 |
| Intangible assets and goodwill | 32,972 | 32,854 |
| Total non-current assets | 33,553 | 32,959 |
| Current assets | ||
| Trade and other receivables | 22 | 24 |
| Prepayments | 165 | 231 |
| Financial Investments | 0 | 2,500 |
| Cash and cash equivalents | 3,432 | 3,900 |
| Total current assets | 3,619 | 6,655 |
| TOTAL ASSETS | 37,172 | 39,614 |
| Current Liabilities | ||
| Current tax liabilities | 270 | 232 |
| Trade and other payables | 913 | 791 |
| Lease liabilities | 107 | 0 |
| Contract liabilities | 1,669 | 1,659 |
| Other provisions | 384 | 1,117 |
| Total current liabilities | 3,343 | 3,799 |
| Long-Term Liabilities | | |
| Lease liabilities | 309 | 0 |
| Total long-term liabilities | 309 | 0 |
| Total liabilities | 3,652 | 3,799 |
| Equity | ||
| Share capital | 850 | 850 |
| Share premium | 141 | 51,242 |
| Reserve capital | 85 | 85 |
| Voluntary reserve | 27,710 | 0 |
| Other reserve | 1,235 | 2,035 |
| Foreign currency translation reserve | (35) | (21) |
| Retained earnings | 3,534 | (18,376) |
| Equity attributable to owners of the parent | 33,520 | 35,815 |
| Total equity | 33,520 | 35,815 |
| TOTAL EQUITY AND LIABILITIES | 37,172 | 39,614 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| (in thousands of euros) | 01.01.2024- 31.12.2024 | 01.01.2023-31.12.2023 |
| Revenue | 15,175 | 14,970 |
| Other income | 175 | 93 |
| Goods, raw materials and services | (4,764) | (4,786) |
| Other operating expenses | (1,887) | (1,715) |
| Work performed by the entity and capitalized | 4,327 | 2,651 |
| Employee expenses | (6,871) | (4,801) |
| Depreciation, amortization and impairment of non-current assets | (4,342) | (3,670) |
| Other expenses | (10) | (180) |
| Operating profit (loss) | 1,803 | 2,562 |
| Discontinued Operations | 0 | (23,392) |
| Financial Income | 258 | 183 |
| Profit (loss) before tax | 2,061 | (20,647) |
| Income tax | (8) | (10) |
| Profit (loss) for the period | 2,053 | (20,657) |
| Other comprehensive income | | |
| Items that are or may be reclassified subsequently to profit or loss | ||
| Foreign currency translation differences | (14) | 20 |
| Other comprehensive income for the period, net of tax | (14) | 20 |
| Total comprehensive income for the period | 2,039 | (20,637) |
CONSOLIDATED STATEMENT OF CASH FLOWS
| (in thousand euros) | 01.01.2024-31.12.2024 | 01.01.2023-31.12.2023 |
| Cash flows from operating activities | ||
| Profit (loss) for the period - continuing operations | 2,053 | 2,735 |
| Adjustments for: | ||
| Depreciation and amortization | 4,342 | 3,670 |
| Financial Income | (258) | (183) |
| Other adjustments | 318 | 489 |
| Total adjustments | 4,402 | 3,976 |
| Changes in trade and other receivables | 2 | (25) |
| Changes in contract liabilities | 10 | (96) |
| Changes in prepayments | 66 | (102) |
| Changes in trade and other payables | (573) | 519 |
| Cash flows from operating activities – continuing operations | 5,960 | 7 007 |
| Cash flows from operating activities – discontinued operations | 0 | (882) |
| Cash flows from operating activities | 5,960 | 6,125 |
| Cash flows from investing activities | ||
| Net cash flows from business combinations | 0 | (1,100) |
| Interest received | 258 | 183 |
| Fixed-term deposits | 2,500 | (2,500) |
| Acquisition of property, plant and equipment | (140) | (16) |
| Development expenditure | (3,962) | (2,278) |
| Cash flows used in investing activities – continuing operations | (1,344) | (5,711) |
| Cash flows used in investing activities – discontinued operations | 0 | (3,129) |
| Cash flows used in investing activities | (1,344) | (8,840) |
| Cash flows from financing activities | ||
| Lease liability principal repayments | (55) | 0 |
| Payouts to shareholders | (5,015) | (2 550) |
| Cash flows from financing activities – continuing operations | (5,070) | (2 550) |
| Cash flows from financing activities – discontinued operations | 0 | 0 |
| Cash flows from financing activities | (5,070) | (2 550) |
| TOTAL CASH FLOWS | (454) | (5 265) |
| Cash and cash equivalents at the beginning | 3,900 | 9 145 |
| Effect of movements in exchange rates on cash held | (14) | 20 |
| Cash and cash equivalents at the end | 3,432 | 3 900 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| (in thousands of euros) | Total equity attributable to owners of TextMagic AS | |||||||
| Share Capital | Share premium | Reserve capital | Voluntary reserve | Other reserve | Foreign currency translation reserve | Retained earnings | Total equity | |
| Balance at December 31, 2022 | 850 | 51,242 | 0 | 0 | 1,651 | (41) | 1,784 | 55,486 |
| Loss for the period | 0 | 0 | 0 | 0 | 0 | 0 | (20 657) | (20 657) |
| Other comprehensive income for the period | 0 | 0 | 0 | 0 | 0 | 20 | 0 | 20 |
| Other changes in equity | 0 | 0 | 85 | 0 | 384 | 0 | 497 | 966 |
| Balance at December 31, 2023 | 850 | 51,242 | 85 | 0 | 2,035 | (21) | (18,376) | 35,815 |
| Profit for the period | 0 | 0 | 0 | 0 | 0 | 0 | 2,053 | 2,053 |
| Other comprehensive income for the period | 0 | 0 | 0 | 0 | 0 | (14) | 0 | (14) |
| Covering loss | 0 | (18,376) | 0 | 0 | 0 | 0 | 18,376 | 0 |
| Transactions with shareholders | 0 | (5,015) | 0 | 0 | 0 | 0 | 0 | (5,015) |
| Other changes in equity | 0 | (27,710) | 0 | 27,710 | (800) | 0 | 1,481 | 681 |
| Balance at December 31, 2024 | 850 | 141 | 85 | 27,710 | 1,235 | (35) | 3,534 | 33,520 |
Attachments
