Tourn International (TOURN) Q4 2024 earnings summary

Executive summary

• Revenue decreased by 29% year-over-year, but margins improved significantly in both core segments, with Agency margins up 27% and Nagato up 23% in 2024.

• Strategic cost reductions and new, more profitable business agreements contributed to a 23% increase in group EBITDA compared to the previous year.

• Investments outside core operations, notably in Baud and World TOURN ASA, negatively impacted annual results by -12.4 MSEK.

• Q4 was the strongest quarter for both revenue and profitability, with Nagato and Agency showing improved net margins.

Financial highlights

• Group net sales for 2024: 69.2 MSEK (down from 98.7 MSEK in 2023); core business net sales: 63.8 MSEK.

• EBITDA for 2024: -3.7 MSEK (improved from -18.5 MSEK in 2023); adjusted EBITDA up 23% year-over-year.

• Net loss for 2024: -15.3 MSEK (improved from -18.6 MSEK in 2023); EPS: -1.56 SEK.

• Q4 2024 net sales: 22.3 MSEK; Q4 net loss: -3.8 MSEK; EPS: -0.39 SEK.

• Cash at year-end: 8.8 MSEK, with liquidity impacted by delayed customer payments and investments in Baud/World TOURN ASA.

Outlook and guidance

• 2025 core business revenue target: 100 MSEK with a profit margin of 5–10%.

• Baud expected to generate 80 MSEK in revenue in 2025, with full market establishment in Asia by Q4 2025.

• Long-term goal: 500 MSEK in revenue by 2028 with at least 10% profit margin; international expansion planned in the US, Europe, and Asia.

• Management sees improved market conditions and has already met Q1 2025 booking targets.