Philip Coombes

Philip Coombes

Xplora published its earning report for Q1 2022 this morning. The company realised 37% against the same quarter in 2021 with revenues of NOKm 74.0, up from NOKm 54.0 in Q1 2021. The company also increased its revenue from its recurring service revenues, both in absolute terms and as a share of its revenue. Recurring revenues totalled NOKm 33.6 in Q1 22 constituting 45% of total revenue, up 66% nominally from Q4 21, where recurring revenues comprised a lesser 19% of total revenue.

The strong service revenues were upheld by Xplora’s subscriber numbers which numbered 124.3k, a 55% growth year on year, but only a small growth on the numbers for Q4 21 which were 123.4k. Gross profit grew 115% year on year to NOKm 41.0 with EBITDA coming closer to breaking even at NOKm (2.9) for Q1 22, against NOKm (10.9) for Q1 21.

Xplora announced together with its expectations for 2022 its anticipation of Q1 being its weakest quarter of the year. While total revenue growth of 37% is below its full-year 2022 target of 50%, significant strides were made towards accelerating growth for the remainder of the year.

Xplora has thus far in 2022 announced numerous new distribution and service provider agreements. On the distribution side, Xplora has announced new partnerships in the UK and the US, with retail giants Target, and Walmart partnering in the US, together with electronics retailer VLC Distribution; and in the UK a telco distribution agreement was reached with EE. On the service provider side, Xplora has announced three new partnerships with IQ Mobile in the UK, AT&T in the U.S. and Transatel in France. In combination, the partnerships can help drive growth in both device and connectivity sales.

HC Andersen Capital receives payment from Xplora for a Digital IR/Corporate Visibility subscription agreement. /Philip Coombes, 15:45, 25-05-2022.