Fram Skandinavien (FRAM) Q2 2024 earnings summary

Executive summary

• Net asset value (NAV) as of July 31, 2024, was 154 mSEK (43 SEK/share), a 166% premium to share price but down 16% from June 2023.

• Focus remains on driving core holdings to profitability amid low investor appetite for unprofitable tech companies.

• DragonLend is being wound down and reported as discontinued operations; no further cash outflows expected.

• Portfolio consists of 3 private tech companies and 1 public tech company, with Carmudi representing 72% of NAV.

Financial highlights

• Group EBIT loss from continuing operations reduced to -399 KSEK in Q2 2024 from -851 KSEK in Q2 2023.

• Group EBIT losses reduced by 82% year-over-year.

• Q2 2024 GMV grew 47% year-over-year to 36,178 KSEK, mainly due to Carmudi.

• Total revenues for Q2 2024 were 1,812 KSEK, down from 14,594 KSEK in Q2 2023, reflecting a shift to more profitable transactions.

• Cash balance at period end was 13,491 KSEK; operational cash flow from continuing operations was -667 KSEK.

Outlook and guidance

• Main focus is on achieving breakeven in core holdings before seeking buyers.

• Valuation of Carmudi updated to a sum-of-the-parts approach to better reflect peer multiples.

• No additional investments expected in DragonLend as it winds down.