TextMagic AS Sees Revenue Shifts in 2025's Interim Report
TextMagic AS Interim Report Highlights
TextMagic AS has released its interim report for the first half of 2025, summarizing key performance metrics on its communication platform. Revenue for the period reached €7,115 thousand, down from €7,809 thousand in the prior year. This decline is largely attributed to the introduction of competitive pricing strategies on the TextMagic platform.
Financial Overview: Performance Insights
Revenue and Profitability
The company's EBITDA for H1 2025 was recorded at €2,581 thousand, marking a drop from €3,149 thousand in H1 2024. Operating profit transitioned into a loss of €123 thousand compared to a profit of €1,097 thousand in the previous year. Increased amortization expenses of €652 thousand are responsible for negatively impacting profitability, resulting from continued development activities aimed at enhancing the platform's value proposition.
Growth in Usage Despite Revenue Decline
Despite the downturn in revenue, TextMagic has observed growth in the volume of messages sent through its platform. Notably, in the second quarter of 2025, there was a 7% increase in SMS messages sent compared to the same period in the previous year. However, acquiring new customers in the U.S. has become increasingly challenging due to emerging regulations, whereas the UK and Australian markets are demonstrating promising growth trends.
Product Developments and Strategic Focus
Enhancing Value Proposition
Since 2024, TextMagic's primary development focus has been on enhancing the platform's features and communication channels to better serve business interactions. This strategy included adding new communication channels such as Business Instagram and Facebook Messenger in the first quarter of 2025, allowing users to handle a variety of customer queries within a single framework.
Email Campaign Feature Launch
June saw the launch of an email campaign feature, aimed at providing clients with a comprehensive solution for marketing and customer engagement that complements the SMS service. This additional functionality is expected to foster new customer acquisition opportunities.
Key Financial Figures at a Glance
As summarized in our latest report, here are the key figures:
- Revenue: €7.12 M (H1 2025) vs €7.81 M (H1 2024)
- EBITDA: €2.58 M (H1 2025) vs €3.15 M (H1 2024)
- Operating Profit (Loss): -€0.12 M (H1 2025) vs €1.10 M (H1 2024)
Outlook and Market Conditions
The operating challenges for TextMagic are multifaceted. The company’s decision to offer more budget-friendly plans and free usage options has contributed to the revenue decline. Additionally, strict U.S. regulations limiting mass messaging for unregistered campaigns, alongside fluctuating currency exchange rates, have further influenced revenue performance, compounded by customer price sensitivity amid varying economic conditions.
Future Steps for TextMagic AS
TextMagic AS is proactively refining its offerings and enhancing its operational capabilities. Moving forward, the company is committed to navigating the competitive landscape through strategic adjustments and innovative solutions aimed at improving customer satisfaction and retention.
Frequently Asked Questions
What was the overall revenue for TextMagic AS in H1 2025?
The revenue for TextMagic AS in the first half of 2025 was €7,115 thousand.
How did TextMagic's EBITDA change compared to H1 2024?
TextMagic's EBITDA decreased from €3,149 thousand in H1 2024 to €2,581 thousand in H1 2025.
What factors contributed to the decline in revenue?
The decline in revenue can be attributed to a new pricing strategy and regulatory challenges in the U.S. market.
What new features were added to the platform in 2025?
New communication channels, including Business Instagram and Facebook Messenger, were added in addition to an email campaign feature.
How is TextMagic responding to current market challenges?
TextMagic is focusing on enhancing its service offerings, exploring new markets, and adjusting its pricing strategy to adapt to market conditions.
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