Tourn International (TOURN) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw improved profitability in core operations, with adjusted EBITDA up 17.1% year-over-year, despite continued negative impact from investments outside the core business, notably Baud and World TOURN ASA, which reduced results by -1.6 MSEK in the quarter.

• NAGATO achieved a milestone with 1 MSEK operating profit and significant growth in channels and views, offsetting lower CPMs typical for Q1.

• Agency expanded its profile portfolio, signing two new profiles and increasing campaign sales volume, with 2025 campaign sales already at 43% of 2024's total.

• Baud initiated a strategic partnership with RUYI for premium headphones, securing a 2.3 MSEK order post-quarter, and continued its expansion in China with Daniel Wu as a key partner.

Financial highlights

• Net sales for Q1 2025 were 14.4 MSEK, nearly flat year-over-year (Q1 2024: 14.7 MSEK).

• Adjusted EBITDA for core operations improved by 17.1% to 682 TSEK compared to Q1 2024.

• Group result after financial items was -3.5 MSEK (Q1 2024: -4.3 MSEK), showing a reduced loss.

• Cash position at quarter-end was 5.3 MSEK, down 3.6 MSEK during Q1, but a significant improvement over the -14.3 MSEK decrease in Q1 2024.

• Earnings per share for Q1 2025 was -0.36 SEK (Q1 2024: -0.45 SEK).

Outlook and guidance

• Confident in generating positive results and cash flow in Q2 2025, with all business segments showing improvement early in the quarter.

• Short-term target: 100 MSEK in core business sales for 2025 with a 5–10% profit margin; 80 MSEK in Baud sales for 2025.

• Long-term target: 500+ MSEK in sales by 2028 with at least 10% profit margin and full establishment in the US, Europe, and Asia.