Sinch announces financial leverage policy changes in Stockholm

On September 9, 2024, Sinch AB (publ) announced a significant change to its financial leverage policy, aiming to strengthen its financial position. The new guideline stipulates that net debt should remain below 2.5 times adjusted EBITDA, measured on a rolling twelve-month basis. This adjustment reflects a shift from the previous threshold of 3.5 times, indicating a more conservative approach to financial management. The phrase 'over time' allows for temporary exceedance of this limit, particularly following acquisitions, which suggests a strategic flexibility in managing debt levels during growth phases. The decision to revise the leverage policy underscores Sinch's commitment to maintaining a robust financial foundation while pursuing its long-term financing strategy. By tightening the leverage ratio, the company aims to enhance investor confidence and ensure sustainable growth. This move is particularly relevant in the context of the competitive landscape of customer communications, where financial stability can be a key differentiator. Sinch's proactive stance in adjusting its financial policies is likely to resonate well with stakeholders, as it demonstrates a focus on long-term viability and risk management. The company is positioning itself to navigate potential market fluctuations while still pursuing strategic acquisitions that may temporarily increase debt levels. Overall, this policy change reflects Sinch's dedication to responsible financial practices, which is essential for fostering trust among investors and supporting the company's ongoing innovation in the communications sector.