Moment Group AB: Interim report January-September 2024

THIRD QUARTER 2024
2024 2023 2024 2023
SEK million Jul-Sep Jul-Sep Jan-Sep Jan-Sep
Net sales 228 200 735 648
Pro rata sales* 210 196 707 612
EBITDA -3 8 20 37
EBIT -19 -8 -33 -11
Profit/loss before -29 -15 -60 -31
income tax
Operating margin -8% -4% -4% -2%
Operating margin, -9% -4% -5% -2%
pro rata*
Earnings per share -1.05 -0.59 -2.16 -1.29
before dilution,
SEK**
Earnings per share -1.05 -0.59 -2.16 -1.29
after dilution,
SEK**

A WORD FROM THE CEO

A quarter with increased sales and lower profitability

While sales during the third quarter increased year-on-year, the operating profit went in the opposite direction. Our show and activity venues continued to be affected negatively by the tough economic climate the restaurant industry is exposed to and the resulting lower guest numbers. This was balanced to a certain extent by increased sales and the strong operating profit in business area Event & Communication. Although the summer months are a quieter period, the summer theatres enjoyed high seat occupancy in July, while the productions with premières during September went according to plan. Once again, we note that the breadth of operations in the Group is a strength, as a decline in any single part can be compensated by the continued strength of other operations.

Net sales for the quarter totalled SEK 228 million (200) with an operating loss of SEK -19 million (-8). It's gratifying to note that business area Event & Communication is continuing its strong performance, as are the summer theatres. On the other hand, our show and activity venues continued to experience profitability challenges. Accumulated sales for the year totalled SEK 735 million (648) and the operating loss was SEK -33 million (-11). Our businesses experience great seasonal variations, and our venues generate earnings largely during the fourth quarter, when earnings usually exceed net annual income.

In August, we were pleased to announce that we had acquired the legendary Lorensbergsteatern, one of Gothenburg's foremost theatres. 2Entertain and Vicky Nöjesproduktion will take possession of Lorensbergsteatern on 7 January 2025 through their joint company, Oscarsteatern AB. This means we gain an additional scene for our many successful theatre and musical productions. The acquisition also means we gain additional guests with whom we can hold dialogues, while the theatre's location in Gothenburg, where the Group is headquartered, is an added benefit.

It was with a heavy heart that we decided in September to close our Hamburger Börs business in Stockholm following an extended period wrestling with profitability issues. Because of the unreasonable rent level and greater cost base, continued operations were unfortunately unsustainable. Work is now in hand to find a solution that will not only reduce our exposure to risk but is also sustainable over the long term.

We leave the period with a liquidity of SEK 72 million (79). Cash flow from operating activities totalled SEK 13 million (25). The decline is attributable to lower profitability but is compensated to a certain degree by less capital tied up in our operations. Our investments during the period totalled SEK 4 million (17) after a conscious decision to be cautious due to the economic climate.

Cash flow for the quarter came in at SEK 12 million (-8) and the improvement compared to the previous year is due to the amortisation of the SEK 35 million super loan facility in June 2023 combined with a bridging loan raised in July 2024. The bridging loan totalled SEK 17.5 million and was raised to cover our capital requirement due to liquidity-intensive implementations in business area Event & Communication. The loan will be finally amortised in the middle of December 2024.

As an indicator of the sales position moving forward, prepaid ticket revenues at the end of the period stood at SEK 127 million (121). However, the figure is affected by the way the production portfolio differs from year to year.

Much work is in progress that will bear fruit in time and allow us to continue providing relevant experiences and reaching out to even more guests and customers with everything we have to offer. While the economic climate continues to be tough, we are focusing our efforts on what we are able to influence, and our sights are set on the 2028 financial goals we announced one year ago, namely SEK 1.3 billion in sales, an operating margin of 8-10% and an interest coverage ratio no lower than 5 on a rolling 12-month basis.

Providing experiences is more than just a good business idea, it also contributes to a more sustainable society where a sense of community and well-being are at the heart. While our offerings are fundamentally more sustainable than most other consumption, this does not mean we can kick back and relax. We all have important work to do for a more sustainable future, and sustainability is not just a Group goal, but also a journey that involves all our businesses. Read more about our sustainability work at www.momentgroup.com.

Whenever I'm out at our venues and various undertakings I'm always proud to see what our employees do to create all these memorable experiences for our guests. I'm utterly convinced that meeting face-to-face and experiencing things together with others is a source of positive energy and even more important in a world that many of us feel is getting tougher.

And so let me say I hope to have the pleasure of meeting more of you very soon and I wish you all a great time in the upcoming Christmas holidays.

Gothenburg, 15 November 2024  

Martin du Hane 
Group CEO 
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 15 November 2024 at around 08:30 CET.