Moment Group AB: Year-end report January-December 2023

FOURTH QUARTER 2023
2023 2022 2023 2022
SEK million Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Net sales 394 393 1042 848
Pro rata sales* 378 356 990 788
Other operating income 4 1 8 35
EBITDA 96 96 133 123
EBIT 79 80 67 63

A WORD FROM THE CEO

Strong performance in challenging times

In summary, 2023 was the strongest financial year in the Group's history! I can declare with pride that all of our businesses delivered positive earnings and succeeded well in countering the effects of the uncertain world we live in. Despite all the challenges, we even developed two new concepts during the year. Once again, I'm truly pleased by the breadth of our businesses and the commitment of everyone in the Group, which clearly shows we are stronger together.

Net sales for the quarter totalled SEK 394 million (393) with an operating profit of SEK 79 million (80). Accumulated sales for the year came in at SEK 1,042 million (848) with an operating profit of SEK 67 million (63) - the strongest operating profit in the Group's history! It's worth noting that the fourth quarter was impacted positively by the settlement with the 2Entertain Germany bankruptcy estate, an outcome that is SEK 12 million better than provided for. Adjusted for this one-off effect, operating profit for the full year was SEK 55 million, which is a strong performance under the prevailing global situation. 

During the year we once again boasted a very attractive production portfolio and, in combination with the successful promotion of our offerings in the current challenging economic climate, this is important. The business areas 2Entertain and Event & Communication clearly exceeded expectations, while the tougher economic climate was more severe for our two business areas that are closer to the restaurant industry, namely Kungsportsgruppen and Wallmans Group. During the year, these business areas noted a certain reduction in both demand and average revenues, which together with increased costs provided earnings that were lower than expected.

It is clear that the breadth of operations in the Group is a strength as external effects in one segment can be compensated for in that other operations are affected less. 

The Group is running several development projects in parallel with its focused operational work. During the year we successfully launched our new Bermuda Deck Shuffle Club concept in Malmö, where it will shortly also be première for our next activity-based concept, SLiCE. These investments harmonize well with our strategy of profitable growth and a gradual even spread of seasonal dependencies.

As an indicator of the sales position moving forward, prepaid ticket revenues at the end of the period stood at SEK 85 million (87). However, the figure may be affected by the way the production portfolio differs year-on-year.

We ended the year with a liquidity of SEK 108 million (191), where cash flow from operating activities totalled SEK 56 million (93). During the year, the Group invested SEK 42 million (11) in fixed assets, amortised SEK 108 million (60) and received SEK 12 million (0) in a new issue by exercising warrants. We succeeded in reducing our indebtedness (excluding an IFRS 16 adjustment), which is in line with our strategy of strengthening the balance sheet and achieving a more stable interest coverage ratio.   

During the fourth quarter we also secured long-term financing through new bond conditions, which include a new due date of 28 September 2025. This provides us with good conditions for continuing to adapt the future capital structure according to the Group's ambitions and needs.  

Our recently presented financial targets for 2028 indicate our ambitious growth agenda, and this year's earnings are pointing in the right direction. Our strategy moving forward is to continue growing and developing our offerings. One of our priorities is to establish further businesses within the Group, as they will increase profitability by helping to cover our fixed cost base and the Group's financing costs. 

After several tough years, being able to express a clear ambition for the future is a sign of great strength, and even though we live in uncertain times we are secure in the things we can influence ourselves. We're convinced that the experience industry is a growth industry, and that the expression `Collect moments not things' is more relevant than ever, and where we seek to be the go-to choice in the experience industry.

We will also continue to take important steps in our sustainability work to reduce our impact for coming generations. This is in line with our business idea of developing sustainable operations in the experience industry and continuing to be a leader in Scandinavia in our respective markets. Sustainability work is an important component in continuing to develop our platform for profitable growth, and it forms the basis for enabling the strategy and agenda we have ahead of us.  

I'm looking forward to continuing at the helm on our Group's exciting experience industry voyage, with all my fabulous crew aboard! Together, we will continue to create sustainable experiences for all of our guests, our customers, our shareholders and for us! 

Gothenburg, 9 February 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 9 February 2024 at around 08:30 CET.