Tourn International (TOURN) Q2 2024 earnings summary

Executive summary

• Q2 2024 showed improved profitability in core businesses, with Agency and NAGATO increasing margins by 9 and 5 percentage points year-over-year, respectively, despite lower-than-expected revenue.

• Strategic activities included new collaborations, investments in Baud and TOURN ASA, and the launch of Challenge's tournament platform.

• Agency added four new profiles, and NAGATO expanded its offering, aiming to double revenue in the next 12 months.

Financial highlights

• Q2 2024 net revenue: 16.6 MSEK, down from 26.3 MSEK in Q2 2023.

• EBITDA for Q2: -6.1 MSEK (Q2 2023: -5.1 MSEK); Adjusted EBITDA for core business: -0.02 MSEK (Q2 2023: -2.0 MSEK).

• Net result for Q2: -4.2 MSEK (Q2 2023: -6.1 MSEK); EPS: -0.43 SEK (Q2 2023: -0.63 SEK).

• Cash position at quarter-end: 19.6 MSEK, with a positive cash flow of +4.6 MSEK during the quarter.

• Investments in Baud and TOURN ASA impacted results by -2.6 MSEK in Q2.

Outlook and guidance

• NAGATO expected to double revenue in the next 12 months due to new partnerships.

• Agency's new profiles anticipated to drive higher bookings in Q4 and 2025.

• Company targets 500 MSEK revenue and at least 10% profit margin by 2025, with full establishment in the US, Europe, and Asia.