INTERIM REPORT 1 January–30 September 2019

As anticipated, the quarter showed a lower level of activity, but positive signals moving forward. From here on, we can focus sharply on restoring profitability. 

THIRD QUARTER AND JANUARY–SEPTEMBER 2019
    2019   2019   2018   2019   2019   2018
(SEK million)   Jul–Sep
IFRS 16
  Jul–Sep
IAS 17
  Jul–Sep
IAS 17
  Jan–Sep
IFRS 16
  Jan–Sep
IAS 17
  Jan–Sep
IAS 17
Net sales   146   146   170   531   531   710  
Pro rata sales   135   135   149   481   481   619
Operating profit/loss before depreciations (EBITDA)   -10   -23   -25   -27   -66   -34
Operating profit/loss (EBIT)   -27   -29   -31   -78   -83   -49
Operating margin   -19%   -20%   -18%   -15%   -16%   -7%
Operating margin, pro rata   -20%   -21%   -21%   -16%   -17%   -8%
Earnings per share   -1.10   -1.05   -2.07   -3.95   -3.78   -3.37
                                     

A WORD FROM THE CEO

In October 2019, I took up the position as pro tem CEO/Group CEO. Having been Group CFO for more than four years, I know the companies well, and together with the management groups from our various businesses, I will focus sharply on ensuring that Moment Group is once more a profitable business. 

Moment Group’s business is characterised by seasonal operations and for major parts of the group, the third quarter means a lower level of activity. This year is no different. Net sales totalled SEK 146 million (170), a reduction of SEK 24 million compared to the previous year, which is mostly attributable to the production portfolio in the Live Entertainment business area. However, the operating loss for the quarter is an improvement on previous years and adjusted for expenses in conjunction with the CEO replacement, totalled SEK -24 million, calculated under current regulations. Taking the above cost into account, and adjusted for the effect of IFRS 16, the loss was SEK -26 million (-31), which is an improvement of SEK 5 million over the previous year. Broken down per business area, live entertainment showed an improvement of SEK 10 million  while Immersive Venues stood for a deterioration of SEK 4 million. Business Area Event is performing on a par with last the same quarter last year.  

The quarter began strongly with the summer’s performance at Vallarna’s Outdoor Theatre in Falkenberg, a production that attracted an audience of more than 53,000 people. We can also characterise September as a good month for premières both within 2Entertain and our cabaret venues, and the warm reception by both the public and reviewers bodes well for future quarters. Prepaid ticket revenues as of the end of September totalled SEK 147 million (87), which is SEK 60 million higher than the previous year. The improvement is mainly attributable to 2Entertain’s ticket-based business, but also to our cabaret venues. This is a good indicator of the sales situation even though it is also affected by the size of the production portfolio.  

Kungsportshuset continued to burden the income statement during the third quarter, but to a lesser extent, and the building is now being prepared for the special Wallmans performance during November and December. At the same time, a transition is under way to a more content-based venue centred around the Kungsportshuset Eventarena, which will be filled with various types of entertainment, productions and corporate events. 

Following a number of years with a major focus on growth and acquisition, a return to profitability will be the highest priority in the short term. Analyses of revenues and expenses are under way in every business operation aimed at identifying better business models and more effective ways ahead. At the same time, the parent company organisation is being driven forward with a radically reduced cost burden for the phase the Group is currently in. On the same theme, Group management consists of purely operative capabilities alongside the Head of IR/PR and the Group CEO, with a clear focus on business and business support. 

We have now entered the strongest quarter of the year, and our various business operations are looking forward to welcoming and taking care of all of the guests the quarter will bring! 

Gothenburg 25 October 2019
Josefin Dalum
pro tem CEO/Group CEO
josefin.dalum@momentgroup.com

 

Moment Group is one of the leading players within the Scandinavian experience industry. The Group creates experiences for more than 2 million guests every year. Moment Group operations are conducted in four business areas from offices in Gothenburg, Stockholm, Copenhagen, Oslo, Hamburg, Falkenberg and Växjö. Moment Group is listed on Nasdaq Stockholm, Main Market.

Hansen and Minnesota Communication operate in the business area Event, and together they are the largest operator in the Nordic events industry. Hansen plans, develops and implements events that are firmly established in the client’s business strategy. Minnesota works with brand engagement, which means it helps customers create arenas for dialogues and participation through meetings, experiences and digital solutions.

In the Immersive Venues business area seven arenas in Scandinavia are run – Wallmans in Stockholm, Copenhagen and Oslo, Golden Hits in Stockholm and Kungsportshuset in Gothenburg. Within the business area two modern activity centres are also run – Ballbreaker in Stockholm and STAR Bowling in Gothenburg, where experiences are created where guests participate in activities based on games and competitions in combination with food & beverages.

Kungsportshuset in Gothenburg also hosts KPH Matbar – a Scandinavian dining experience with flavours from around the world.

In the Live Entertainment business area, 2Entertain produces musicals, theatre, shows and concerts. It creates special-order entertainment, arranges artists for corporate customers and runs five theatre venues and
one venue for dinner & show. 2Entertain also runs the ticket booking site SHOWTIC.se.

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