A word from the CEO – from 20 July 2018

An application to Nasdaq Stockholm submitted and yet another acquisition completed.

Moment Group is on its way to take the next step in establishing itself as the leading operator in the experience industry. In May, the Group submitted an application for listing on Nasdaq Stockholm and also carried out a start-up meeting with Nasdaq and the stock exchange auditor during the quarter. The main reasons were our growth ambitions in a burgeoning industry, and the fact that the Group has grown considerably larger since last year. On a rolling 12-month basis, sales (pro rata) have increased by 27 per cent. The second quarter also showed a high rate of growth totalling 45 per cent and reaching pro rata sales of SEK 237.9 million (163.8). The additional sales are mainly from Hansen in the Event businesses area, in Venues from the inauguration of Kungsportshuset in Gothenburg and the acquisition of Ballbreaker. In all during the quarter, 38 per cent constitutes organic growth, and 7 per cent acquired growth.

However, at the EBITDA level, earnings softened by SEK 5 million compared with the second quarter during the previous year. Trends in Venues are holding earnings back, where occupancy rates were worse due to extremely good weather in Sweden since the end of April, but mainly because the start-up at Kungsportshuset is also charged to this quarter. Internally, the Wallmans Group is focusing keenly on bringing Kungsportshuset into full operation during the autumn for it to gradually begin making positive contributions to the Group’s revenue generation. Adjusted for the operating loss during the Kungsportshuset start-up period, the second quarter shows instead a marginal improvement compared to the previous year. On a rolling 12-month basis, the Group’s EBITDA amounts to SEK 42.1 million (17.9).

The implementation of our growth strategy continues, and in June we acquired the STAR Bowling activity centre in Gothenburg. STAR has annual sales of SEK 50 million and an operating margin of around 22 per cent (2017). The purchase sum amounted to SEK 50 million, which corresponds to an EBITDA multiple of 4.5. STAR will operate as an independent company within the Venues business area as an affiliate to Ballbreaker. 

During the autumn, a new business area will be established – Immersive Experiences – with the ambition of reaching new target groups in the experience concept that differ from those in the Group’s existing portfolio. The focus will be on those parts of the industry where digitalization drives new consumption patterns and the borders between the real and virtual worlds are erased. Thus the initiative has a distinct future focus. The business will operate under the Moment Group brand and will consist of a portfolio of companies/brands aimed at both the consumer and commercial markets.

It’s going to be an exciting autumn, but before that I wish everyone a great summer!

Gothenburg 20 July 2018

Pelle Mattisson