Tessin Nordic (TESSIN) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was 6.1 MSEK, down 52% year-over-year; H1 2024 revenue was 12.3 MSEK, down 45% year-over-year.

• EBITDA for H1 2024 was -7.5 MSEK (vs. -1.7 MSEK), and EBIT was -9.3 MSEK (vs. -5.0 MSEK).

• Loan volume mediated in H1 2024 was 111.5 MSEK, a sharp decline from 426 MSEK in H1 2023.

• Key milestones include a 600 MSEK institutional capital letter of intent with Pollen Street Capital and new principal owners.

• Fully subscribed rights issue post-period raised 5.8 MSEK before costs.

Financial highlights

• Q2 2024 net loss was -2.8 MSEK (vs. -0.8 MSEK); H1 2024 net loss was -8.0 MSEK (vs. -5.5 MSEK).

• EPS for Q2 2024 was -0.01 SEK (vs. -0.00 SEK); H1 2024 EPS was -0.03 SEK (vs. -0.02 SEK).

• Cash flow from operations in H1 2024 was -6.1 MSEK; cash and equivalents at June 30, 2024, were 55.7 MSEK.

• Equity at period end was 25.7 MSEK, with an equity ratio of 7.6%.

• Mediated loan volume in Q2 2024 was 57.5 MSEK (vs. 242 MSEK); credit losses remained low at 0.3%.

Outlook and guidance

• Management targets profitability, with the 600 MSEK loan facility expected to enable new lending and revenue growth.

• Demand for property financing remains strong, with a pipeline of about 2 billion SEK in loan demand.

• Anticipated market recovery as interest rates fall and property market activity increases.