Update on growth and cost reduction initiatives
Reference is made to LINK’s Q2 2022 reporting in August, where an enhanced focus on current gross profit growth and cash generation was highlighted. LINK is recalibrating more resources to current market growth opportunities by prioritizing mature products and selected CPaaS solutions with proven market demand.
LINK has made detailed plans for substantial Opex and Capex reductions:
Opex will be reduced compared to the current cost base by NOK 9 million this year and by a further NOK 48 million next year.
Capex spend will be reduced by NOK 4 million through 2022 and by an additional NOK 31 million in 2023, compared to a previous forecasted capex level of NOK 180 million.
The above Opex and Capex initiatives will support adjusted EBITDA growth and continued strong free cash flow generation, materially deleveraging the group. Run rate total annual cash saving is NOK 89 million in Q4 2023.
LINK reiterates its 2022 forward-looking statement for an organic revenue growth range of 8-12%, with organic gross profit growth its main priority.