VO2 Cap (VO2) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 increased by 5.3% year-over-year to 78,754 KSEK, driven by organic growth, while Q1–Q3 revenue rose 1.2% to 249,180 KSEK.

• Adjusted EBITDA margin improved to 7.1% in Q3 (from 4.8%), but EBIT was heavily impacted by a 63.7 MSEK impairment in Borg Owilli, resulting in a Q3 EBIT of -52,937 KSEK.

• Net result for Q3 was -49,367 KSEK (2,598 KSEK last year); for Q1–Q3, -54,724 KSEK (5,984 KSEK last year).

• New CEO Patrik Sandberg appointed in August 2024, bringing extensive media and tech experience.

Financial highlights

• Q3 EBITDA was 16,094 KSEK (20.4% margin), adjusted EBITDA 5,558 KSEK (7.1% margin); Q1–Q3 EBITDA 25,332 KSEK (10.2%), adjusted EBITDA 14,796 KSEK (5.9%).

• Q3 EBIT margin dropped to -67.2% due to non-cash impairments; Q1–Q3 EBIT margin -22.2%.

• Cash flow from operations in Q3 was -8,749 KSEK, mainly due to working capital effects; Q1–Q3 cash flow from operations was 439 KSEK.

• Liquidity at period end was 9,730 KSEK; net debt 11,608 KSEK; equity ratio 46.9%.

• Earnings per share for Q3 were -0.87 SEK (0.05), and for Q1–Q3 -0.97 SEK (0.11).

Outlook and guidance

• Management sees a positive trend in the ad market, with media investments in Sweden up 8% YTD and digital out-of-home segment growing over 27% in Q3.

• Strategic focus on strengthening digital out-of-home and AdTech segments, and on both acquisitions and divestments for portfolio optimization.

• Optimism for Q4, with ongoing business development initiatives and a long-term margin target of 8% EBITDA.