Year-end report 1 January – 31 December 2019
Performance for the quarter was at a historically high level and we note positive signals from our efforts to restore profitability during 2020.
FOURTH QUARTER AND 1 JANUARY – 31 DECEMBER 2019
| 2019 | 2019 | 2018 | 2019 | 2019 | 2018 | |||||||
| (SEK million) | Oct-Dec IFRS 16 |
Oct-Dec IAS 17 |
Oct-Dec IAS 17 |
Jan-Dec IFRS 16 |
Jan-Dec IAS 17 |
Jan–-Dec IAS 17 |
||||||
| Net sales | 425 | 425 | 391 | 956 | 956 | 1,101 | ||||||
| Pro rata sales | 339 | 339 | 317 | 820 | 820 | 936 | ||||||
| Operating profit/loss before depreciations (EBITDA) | 79 | 36 | 19 | 52 | -30 | -14 | ||||||
| Operating profit/loss (EBIT) | 34 | 31 | 14 | -44 | -51 | -34 | ||||||
| Operating margin | 8% | 7% | 4% | -5% | -5% | -3% | ||||||
| Operating margin, pro rata | 10% | 9% | 4% | -5% | -6% | -4% | ||||||
| Earnings per share | 0.63 | 0.65 | 0.67 | -2.85 | -2.66 | -2.58 |
A WORD FROM THE CEO
I can confidently state that in terms of financial performance, the fourth quarter is the strongest in the Group’s history, and that operating cash flow has been strengthened. However, the full year can be summarised as one of the worst financial performances the Group has delivered. We note that the initiatives we pushed through, especially during the last six months of the year, are beginning to give results, and there continues to be unrealised potential in all business areas.
Moment Group’s business is characterised by seasonal operations, and the fourth quarter has a very high level of activity. This year was no different. Net sales totalled SEK 425 million (391), an increase of SEK 31 million compared to the previous year, which is mostly attributable to Live Entertainment. Operating profit/loss for the quarter is a vast improvement on previous years, and adjusted for non-recurring expenses in conjunction with the CEO replacement and the impairment of a right-of-use asset, it totalled SEK 60 million, calculated under current regulations. Taking the above expense into account, and adjusted for the effect of IFRS 16, earnings were SEK 57 million (27), which is an improvement of SEK 29 million over the previous year adjusted for non-recurring expenses. Broken down per business area, Live Entertainment showed an improvement of SEK 27 million and Immersive Venues SEK 5 million, while Event stood for a deterioration of SEK 2 million.
At the beginning of the quarter, prepaid ticket revenues were at a high level, suggesting a strong period ahead, as presented here in summary. During the quarter we noted an increase in earnings in the business areas Live Entertainment and Immersive Venues, and there also remains a continued potential for further performance improvements in the very important final quarter. Prepaid ticket revenue levels also look strong moving forward. At the same time, our event companies are also sending positive signals for 2020 as their selling-in levels in the run-up to spring are historically high.
Kungsportshuset in Gothenburg continued to burden the income statement, but it’s pleasing to note that the measures taken are beginning to have an impact and that the Christmas by Wallmans initiative during November and December provided results beyond expectations. The unit’s performance during the fourth quarter was just over SEK 3 million better than the same period the previous year despite the closure of the event arena for public operations in October.
Our highest priority focus area remains the restoration of profitability. We will thus continue reviewing business models and risk management with the ambition of increasing revenues and creating more dynamic cost bases. This is important for the company’s continued advance.
We look forward to taking on 2020 with the positive signals the autumn has provided.
Gothenburg, 7 February 2020
Josefin Dalum
pro tem CEO/Group CEO
+46 703 94 80 92
josefin.dalum@momentgroup.com
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 07 February 2020 at around 08:30 CEST.
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 three 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.