Moment Group AB: Interim report January-September 2023

THIRD QUARTER 2023
2023 2022 2023 2022 2022
SEK million Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec
Net sales 200 163 648 455 848
Pro rata sales* 196 162 612 433 773
Other operating income 2 -1 3 33 35
EBITDA 8 -2 37 28 123
EBIT -8 -17 -11 -17 63

A WORD FROM THE CEO

 Profits exceed expectations despite uncertain times

Despite a tougher economic climate and unrest in the world at large, both the quarter and the first nine months have seen us achieve the strongest earnings in the Group's history. The fourth quarter is the most important financially for the Group with earnings that usually exceed the full year's. Thus accumulated earnings and the end of the third quarter are always negative and came in this year at SEK -11 million (-17), while the quarter shows SEK -8 million (-17). This is a clear improvement for both periods compared to previous years. Our strategy continues to be a gradual reduction in seasonal dependency, and the investments in the new proprietary concepts of SLICE and BERMUDA are a step in the right direction as earnings from the activity restaurants are more evenly distributed throughout the year.

Our summer theatres in Falkenberg and Kalmar and the summer club at Golden Hits in Stockholm were open for business during the vacation period. We delivered entertainment to cruise liners and resorts and staged a number of major events. Our other businesses and arenas opened up again gradually during August and September, and September in particular was characterised by premières. Many strong productions are currently playing in our venues and on tour, and 10 November saw our extremely successful Grand Opening for the BERMUDA DECK SHUFFLE CLUB concept in Malmö, which will be joined in the new year by the SLICE concept - ping pong & pizza. Both have the ambition of setting up in more locations in Scandinavia.

Net sales for the quarter totalled SEK 200 million (163) with an operating loss of SEK -8 million
(-17). Sales for the quarter were SEK 37 million higher than the equivalent period for the previous year, largely attributable to the business areas Event & Communication and 2Entertain.

As an indicator of the sales position moving forward, prepaid ticket revenues at the end of the period stood at SEK 121 million (120). However, the figure may be affected by the way the production portfolio differs year-on-year. This year we can once again boast of a very attractive production portfolio, so it's all the more important that we combine this with the successful promotion of our offerings, now that we are in a challenging economic climate.

We ended the period with SEK 79 million (173) in cash and cash equivalents. Cash flow is proceeding according to plan, and among the things we chose to do during the quieter period was invest in our venues for a total of SEK 17 million. The Group also amortised SEK 16 million. Cash flow from the operation for the quarter totalled SEK 25 million.

During the year, cash flow was affected by accumulated amortisations totalling SEK 91 million and investments of SEK 30 million. Accumulated cash flow from operations totalled SEK 9 million.

The SEK 109 million corporate bond constitutes the Group's external financing and matures on 28 March 2024 in accordance with the current terms. On 16 November, a written procedure was issued with proposals for changes to the terms and conditions, including an extension of 18 months. At the time of publication of this report, more than 2/3 of the bondholders have undertaken to vote in favour of the amendments to the terms and conditions and the final outcome will be published on or around 12 December. It feels good to have secured financing for the longer term and this is in line with our strategy for growth and increased profitability.

The Group's deferred taxes, fees and rents total SEK 80 million, and will be repaid in increments up until 31 August 2027.

On 14 November, we published the company's new financial targets, which cover long-term growth, operating margin targets and targets for our financial expenses in relation to operating earnings.

After several tough years, it feels great to be able to set long-term financial targets and express a clear ambition for the years ahead based on our current conditions. Even though we're living in an uncertain world, we can be confident in the things we're able to influence ourselves. We're convinced that the experience industry is a growth industry, and that the expression `Collect moments not things' is more relevant than ever, and where we seek to be the go-to choice in the experience industry.

Moving forward, we continue to work in establishing a stable platform for long-term sustainable profitability, where a great deal of effort is put into streamlining working methods and amassing specialist knowledge in various groupings. All in order to continue benefiting from belonging to a group in an evermore complex world. The platform also enables our growth agenda and our strategy moving forward.

It's very satisfying to see how well our proprietary concepts BERMUDA DECK SHUFFLE CLUB and SLICE have taken shape over recent months. This work reflects the entrepreneurship that clearly permeates the entire Group, and which is essential if we're to realise even more of everything we have on the drawing board aimed at development and growth.

At 14:00 on 21 November, I will be making an on-line presentation in which I will address the new financial targets in more detail. I welcome everyone who is interested to listen in; the link to the digital meeting can be found on our website.

Welcome!

Gothenburg, 17 November 2023

Martin du Hane
Group CEO
martin.duhane@momentgroup.com
+46 (0)721 64 85 65

This disclosure comprises information that Moment Group AB is obliged to disclose according to the EU market abuse regulation. The information was submitted through the auspices of the above-mentioned contacts, for publication on 17 November 2023 at around 08:30 CET.