Moment Group AB: Interim report 1 January - 30 September 2022

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THIRD QUARTER
2022
2022 2021 2022 2021 2021
SEK million Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec

Net sales 163 92 455 137 396
Pro rata 150 92 421 137 367
sales[1)]
Other -1 10 33 64 87
operating
income
EBITDA -2 -1 28 -9 60
Adjusted -2 -2 27 -10 58
EBITDA, SEK
million
EBIT -17 -16 -17 -54 -17

A WORD FROM THE CEO

The strongest operating profit for the first nine months in the history of the Group. There is a sense of security in the things we can influence ourselves in an unpredictable future.

We anticipated a lower level of activity in the third quarter as the majority of our operations and venues are closed during the summer vacation period. However, our summer theatres Vallarna Outdoor Theatre in Falkenberg and the Krusenstiernska Theatre in Kalmar bucked the summer trend and enjoyed very good seat occupancy and great reviews in July and August. Fortunately, Vallarna was able to report an audience success with more than 55,000 visitors, and the performance "Alla tiders Åsa-Nisse" is on tour this autumn and playing at close on 20 different theatres from Malmö in the south to Luleå in the north. During August and September the other businesses and venues opened successively, and in general seat occupancy and sales in the Group reached their anticipated levels. After a number of tough years and restrictions, it feels great to note that our guests and customers are once again demanding attractive, exciting experiences

Consolidated net sales for the quarter totalled SEK 163 million (92) with an operating loss of SEK -17 million (-17). Adjusted for the repayment of SEK 3.5 million in state aid received in 2021, our operating loss came in at SEK -13.5, which means that the third quarter, like the second quarter, was the best in the Group's history compared to the same period in previous years. The accumulated operating loss for the first nine months came in at SEK -17 million (-54), which can also be compared to the outcome on 30 September 2019 (the latest comparable period) which was SEK -78 million, an improvement in earnings of SEK 61 million. This is a clear sign that our work on creating sustainable profitability in the Group continues to be on the right track, even though we naturally have things left to do.

September was a great month for premières in our theatrical and musical productions as well as our cabaret venues. Sales in our activity arenas were lower than expected in August, which was probably due to the excellent summer weather, but sales went on picking up during the autumn. The Event businesses are experiencing a substantial increase in demand and the autumn is characterised by many predominantly live-event performances following a long period of digital meetings.

Cash flow from operating activities was positive during the period and totalled SEK 31 million (32). This means the Group exited the period with SEK 173 million in cash and cash equivalents, which is better than forecast. During the quarter, the Group took advantage of an additional deferment of taxes and fees, which had a positive effect on cash flow in the amount of SEK 29 million. Even if deferments used are excluded, cash flow is better than expected for both the quarter, and accumulated for the year. At the end of the quarter, prepaid ticket revenues totalled SEK 120 million (94), which can provide an indication of the company's sales position in the run-up to upcoming periods. However, this is affected by differences in the production portfolio from year to year. 

Shows, concerts, musicals, plays, activities and events - often accompanied by good food and drink - are offered to a seldom witnessed extent, and it's more important than ever to follow both trends and our guests' wishes while also choosing the proper channels for reaching out with attractive offers. Just like our guests, we're experiencing great uncertainty with war in our continental neighbourhood, interest rate rises, skyrocketing energy prices and inflation leading to increased costs. This impacts the Group's costs and our guests' wallets, and any sums set aside for experiences, entertainment and activities may well dwindle. We will continue to focus on planning for the periods ahead in order to counter any unforeseen events.

Magnus Widell will take up the position of COO and Deputy Group CEO as of 1 February. He will play an essential part in our continued journey. We are very well equipped organisationally and enjoy the great commitment of our employees. It gives me confidence in all the things we can do ourselves to influence an unpredictable future.

Pretty soon we'll be in our most important financial quarter, and we're excited about continuing to welcome our guests to our arenas and events!

Gothenburg, 18 November 2022

Martin du Hane
Group CEO Moment Group
martin.duhane@momentgroup.com
+46 721 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 18 November 2022 at around 08:30 CET.