Interim Report 1 January–30 June 2021

The announcement regarding the easing of restrictions beginning 1 July, which according to plan must come into force in four stages, means that we at last can see the light at the end of the tunnel after almost 18 months of virtual total closure of the majority of our operations. However, we continue to be seriously affected by the pandemic and its restrictions, which is clearly reflected in sales and the operating profit/loss for the period. During the last quarter we have continued to make the necessary adjustments to our organisation to be fully ready to go once the restrictions ease and we, our audiences and customers can return to a more normal social life.

A WORD FROM THE CEO

The announcement regarding the easing of restrictions beginning 1 July, which according to plan must come into force in four stages, means that we at last can see the light at the end of the tunnel after almost 18 months of virtual total closure of the majority of our operations. However, we continue to be seriously affected by the pandemic and its restrictions, which is clearly reflected in sales and the operating profit/loss for the period. During the last quarter we have continued to make the necessary adjustments to our organisation to be fully ready to go once the restrictions ease and we, our audiences and customers can return to a more normal social life.

Sales during the quarter totalled SEK 25 million (14) and came exclusively from the four units able to pursue operations, albeit to a limited extent. These are the event companies Hansen and Minnesota Communication along with the activity arenas STAR Bowling and Ballbreaker. During the period, support in the amount of SEK 20 million was recognised as revenue and we declare that all support was necessary for the Group’s survival during this long period of virtual shutdown. The operating loss for the period totalled SEK -25 million (-41).

The pandemic has affected our operation since 12 March 2020 when civil authorities introduced the first restrictions by limiting the number of guests at public gatherings. Nobody could predict the enormous effects the pandemic would have on society in general and our industry in particular, and even though the crisis seems to be petering out in our part of the world it is far from over, and in many places worldwide the trend is in the opposite direction. We are aware that the recovery will take time and we will have to work hard to recuperate from the negative liquidity effects the pandemic has entailed for our operations. It is thus unreasonable to believe that we and our colleagues in the industry will be able to repay the deferred taxes and charges granted by the spring of 2022 (which must take place according to current regulations). We await continued clarification from the government as to how they view this issue while the industry is demanding a second stimulants package to facilitate recovery from the worst crisis to affect the industry in modern times.

‘It is very satisfying that all the parts of the financing solution we negotiated last November are now in place, and that our balance sheet has been substantially strengthened. We’re looking forward to the challenging but also promising time ahead and we’re continuing to make plans for the best way to open all of our businesses as soon as restrictions are lifted.’

During the pandemic we have undertaken extensive structural cost-saving measures such as reducing office floor space, negotiating lower rents and terminating other fixed commitments. We have also taken measures to optimise the labour force and to reorganise our working methods in part. For example, we are currently bringing together specialist sales and marketing expertise for our ticketed events in a group that works across business area boundaries in the operations concerned. The same applies to the finance organisation, which will form a group working with all operations within the Group except for controller assignments, whose functions will remain in each individual operation in order to remain close to the business. We are convinced that this re-organisation will make us more efficient and promote the transfer of skills. It will allow the operations to devote more time to their respective core issues. Together with other measures, the above example will help create enduring profitability while we also continue to be an attractive employer. This will result in our becoming an even stronger player in the segments where we operate.

Thanks to reduced infection rates and eased restrictions, it was fantastic to once again attend a première in the beginning of July! Our summer theatre at the Vallarna in Falkenberg will be performing throughout the summer, albeit with a limited number of seats, and it is most satisfying for everyone involved that we are able once again to welcome guests and offer experiences. We are looking forward with great optimism to several premières in the autumn, and we hope that this positive trend with the easing of restrictions continue.

I would like to thank all of our employees and partners for their hard work and tireless commitment during these trying times and I hope you all have a fantastic summer!

Gothenburg 23 July 2021

Martin du Hane
pro tem CEO/Group CEO
martin.duhane@momentgroup.com
+46-721 64 85 65