TextMagic AS 2025 6 months consolidated unaudited interim report
In the first half of 2025, revenue amounted to €7,115 thousand (H1 2024: €7,809 thousand). The decline was mainly due to a more competitive pricing strategy that was implemented on the Textmagic platform. EBITDA was €2,581 thousand (H1 2024: €3,149 thousand), and the operating loss totaled to €123 thousand (H1 2024: operating profit of €1,097 thousand). Profitability was negatively affected by an increase in amortization expenses of €652 thousand, resulting from the higher volume of development activities in previous periods with the goal of improving the value proposition.
Although sales revenue has declined, we have seen growth in usage volumes since March on the Textmagic platform - in the second quarter of 2025, 7% more SMS messages were sent than in the same period last year. Acquiring new customers in the US market has become more difficult due to regulations, while in the UK and Australia we are seeing a growth trend in new users.
Since 2024, Textmagic platform's development has focused on expanding the product's value proposition by adding features and communicaton channels that support business interactions. In the first quarter of 2025, the rapid development pace slowed down, because the team was downsized to optimize development activities and improve cost efficiency.
In the first quarter of 2025, new communication channels were added to the Textmagic platform, including Business Instagram and Facebook Messenger, allowing users to manage a wide range of customer inquiries and information exchanges in a single environment. In June, we launched an email campaign feature to offer our clients a more comprehensive solution for marketing and customer communication in addition to SMS. Email functionality opens up new opportunities to expand the customer base.
Group unaudited key figures
2025 H1
2024 H1
Revenue
€7.12 M
€7.81 M
EBITDA
€2.58 M
€3.15 M
Operating profit (loss)
-€0.12 M
€1.10 M
Operating profit decreased due to a decline in sales revenue and an increase in the amortization of intangible assets. The increase in depreciation was due to higher capitalized development costs in recent years. Labor and operating expenses decreased in the first half of 2025 compared to the same period in 2024. The EBITDA margin was 36% (H1 2024: 40%), confirming that the company's cash flow from operating activities remains strong.
Textmagic SMS platform's sales results
2025 H1
2024 H1
Change
Unaudited revenue (thousand)
€6,804
€7,490
-9 %
Volume of SMS messages (thousand pcs)
125,913
127,046
-1 %
Active users*
21,307
23,499
-9 %
Average revenue per user (ARPU, 6 months)**
€319
€319
0 %
* An active user is any unique paying customer who has used Textmagic SMS platform services during the reporting period. **ARPU is calculated by dividing unaudited revenue by the number of active users.
Despite the recovery in usage volumes, revenue has still decreased due to various factors. The main impact comes from offering less expensive plans and free usage options. U.S. regulations remain a significant reason for the decline, as they restrict mass messaging for unregistered marketing campaigns. Additionally, revenue has been affected by currency exchange rates, as well as customers' financial situations and price sensitivity.
TextMagic AS's consolidated unaudited interim report for the 6 months of 2025 is attached to the release in PDF format.
Additional information: Getter Grünmann TextMagic AS, CFO https://investor.textmagic.com/
CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS FOR 6 MONTHS OF 2025CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(in thousands of euros)
30.06. 2025
31.12. 2024
30.06. 2024
31.12. 2023
Non-current assets
Property, plant and equipment
483
581
102
105
Intangible assets and goodwill
31,941
32,972
32,921
32,854
Total non-current assets
32,424
33,553
33 023
32 959
Current assets
Trade and other receivables
20
22
90
24
Prepayments
184
165
200
231
Financial Investments
0
0
3,500
2,500
Cash and cash equivalents
4,060
3,432
4,229
3,900
Total current assets
4,264
3,619
8,019
6,655
TOTAL ASSETS
36,688
37,172
41,042
39,614
Current Liabilities
Current tax liabilities
215
270
411
232
Trade and other payables
734
913
882
791
Lease liabilities
115
107
0
0
Contract liabilities
1,506
1,669
1,668
1,659
Other provisions
338
384
679
1,117
Total current liabilities
2,908
3,343
3,640
3,799
Long-Term Liabilities