Q2’20 EBIT of SEK -41m

Limited opening of operations expected in September

EV/sales of 1.0x-0.5x for ‘20e-‘22e

Q2’20: Total sales of SEK 47m due to support pa
Moment Group was very hard hit by the COVID-19 pandemic in Q2’20, even more so than we had expected. The majority of operations were shut down and net sales followed suit. Moment did however report total sales of SEK 47m, where approximately SEK 33m is attributable to various support and relief packages. Management has also initiated sweeping furloughs in order to enhance cost control in conjunction with negations with landlords, thus drastically lowering opex in the quarter. Reported EBIT was SEK -41m, well below our estimate of SEK -16m. In order to ensure working capital and financing for the reopening of operations, Moment implemented a directed share issue yielding approximately SEK 8m, and management is continuing to work on ensuring adequate financing for the company.

Reopening of operations in September could save Q4
Management currently expects to start reopening its operations on a limited scale in September, which will then be gradually increased in preparation for the important fourth quarter. As such, we believe that Q3’20 will likely be similar to Q2 and we make sweeping negative estimate revisions on an annual basis. However, we do still estimate that Moment will have a solid fourth quarter, assuming that everything goes according to plan, as the underlying demand for Moment’s offering remains solid in our opinion.

Lease adj. ND/EBITDA of 1.1x-0.5x for ‘21e-‘22e
The share is down ~38% YTD. At the current share price, and based on our updated estimates, it is trading at an EV/sales of 0.96x-0.48x and an EV/EBITDA of -19.8x-3.6x for ‘20e-‘22e.

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