Positive operating earnings in the first quarter
| FIRST QUARTER 2024 | ||||||
| 2024 | 2023 | 2023 | ||||
| SEK million | Jan-Mar | Jan-Mar | Jan-Dec | |||
| Net sales | 296 | 250 | 1,042 | |||
| Pro rata sales* | 286 | 226 | 990 | |||
| Other operating income | 0 | 1 | 8 | |||
| EBITDA | 21 | 26 | 133 | |||
| EBIT | 3 | 10 | 67 | |||
| Profit/loss before income tax | -6 | 3 | 43 | |||
| Operating margin | 1% | 4% | 6% |
A WORD FROM THE CEO
Positive operating earnings in the first quarter
We begin 2024 with positive operating earnings as anticipated. Our strong theatre and musical production portfolio continues to perform very well and has made a strong start to the year, while our event companies carried out many major projects during the quarter and continue to deliver very good earnings. At the same time, we launched our proprietary concept SLiCE, which had its première in Gothenburg on 8 March. However, our business areas in the restaurant segment are feeling the economic climate with lower seat occupancy and a higher cost situation.
Net sales for the quarter totalled SEK 294 million (250) with an operating profit of SEK 3 million (10). It's worth noting that the previous year was affected positively by around SEK 7 million from production closure effects in 2022. Adjusted for this, operating earnings are on the same level as the year-over-year period. We note that our operations close to the restaurant industry continue to be affected negatively by the prevailing economic climate with somewhat lower seat occupancy and higher costs as a result of increasing inflation.
The attractive 2Entertain production portfolio continued into 2024, and the business area continues to perform very strongly. Business area Event & Communication also continues to exceed expectations with many fine performances of complex assignments, and above all Hansen continues to deliver very strong earnings.
The breadth of operations in the Group is once again a strength as a decline in any given business can be compensated by the continued strength of other operations.
Sustained profitability is contingent upon our continuing to offer relevant experiences. Constant development and the courage to take decisions for the long term are essential for us as an organisation. We continue to focus on our work with sustainability, which is an important component in continuing to develop our platform for profitable growth.
One growth initiative already accomplished is the proprietary concept SLiCE, which threw open its doors in Gothenburg in March. The successful première weekend was graced by a visit from J-O Waldner, our brand ambassador, who made the weekend shine for us and our ping-pong playing guests.
We leave the period with a liquidity of SEK 117 million (171). Cash flow from operating activities totalled SEK 30 million (5) and was affected positively by the conversion into liquidity of the large proportion of accounts receivable we began the year with, while we also paid off the ticket liability that follows our seasonal pattern. Our investments during the period totalled SEK 6 million (4), and we also amortised SEK 16 million (20). This provided us with a positive cash flow for the period totalling SEK 8 million (-19).
As an indicator of the sales position moving forward, prepaid ticket revenues at the end of the period stood at SEK 68 million (70). However, the figure may be affected by the way the production portfolio differs year-on-year, and because we are entering our low season during the second and third quarters.
I hope I have the opportunity to meet many of our shareholders at our Annual General Meeting or one of our summer theatres, and July will also see the première for our new Höga Kusten outdoor theatre. This is one of the reasons I'm looking forward so happily to the summer and the many exciting projects we will implement.
Gothenburg, 3 May 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 3 May 2024 at around 08:30 CEST.
