Q3 adj. EBIT SEK -49m vs. ABGSCe SEK -32m

New financing in place to secure liquidity

EV/sales 1.5-0.5x for ‘20e-‘22e

COVID-19 pressures Moment’s business
The events and live entertainment business is currently under considerable strain due to COVID-19 restrictions. This has had a severe impact on Moment Group, as several of its businesses have had to close. Net sales, on a pro rata basis, amounted to SEK 31m, -42.6% vs. ABGSCe and relatively evenly split between segments. Despite the use of furloughs, layoffs (where possible) and cost-cutting, adj. EBIT came to SEK -49m, -51.4% vs. ABGSCe, pressuring Moment’s liquidity. During the quarter, Moment has continuously worked to secure working capital and long-term financing in order to ensure the survival of the company.

Combination of loans and share issues secure financing
On 27 November, management reported that it had successfully secured liquidity and long-term financing through a combination of means. A group representing the majority of Moment’s outstanding bond owners agreed to offer a bridge loan of SEK 18m at an interest rate of 10% + Stibor 3m. The same group has also agreed to provide a new loan of SEK 47m, running until 28 March 2024 with the same interest rate as the bridge loan. Additionally, the utilised amount of SEK 209m under the current bond framework will be written down to SEK 100m. The write-down is conditional upon Moment Group implementing a preferential rights issue, a directed share issue and a directed warrants issue. All in all, the financing package avoids the potential lack of liquidity previously forecasted during Q4’20.

Management provides guidance for ‘21e-‘23e
Our estimate changes are based on the Q3 report as well as the new financial guidance released on 27 November. Management expects revenues to amount to SEK 803m, 891m and 936m for ’21e-‘23e respectively, with an EBITDA margin of 5.7-8.6% for the same period.

research@abgsc.com (Introduce.se)

ABG Sundal Collier - Introduce.se