Release Date: October 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- VNV Global AB (LTS:0A89, Financial) has successfully raised approximately $150 million from asset sales, which will be used to pay down debt and achieve a positive net cash position.
- Several portfolio companies have raised funds at or above their marked values, indicating potential growth and increased valuation.
- The company has placed a new $850 million bond to refinance existing debt, providing financial flexibility.
- VNV Global AB (LTS:0A89) reports that three-quarters of its portfolio is EBITDA positive, reflecting strong underlying business performance.
- The company is seeing increased activity and signs of life in the tech market, suggesting potential future growth opportunities.
Negative Points
- The net asset value (NAV) per share decreased by 4% in USD terms, primarily due to a 20% markdown in BlaBlaCar's valuation.
- BlaBlaCar's revenue has been negatively impacted by delays in French government approval of energy-saving certificates, affecting short-term financial outlook.
- The tech market remains challenging, impacting the overall performance and valuation of VNV Global AB (LTS:0A89)'s portfolio.
- The company's outstanding debt and liabilities remain significant, affecting overall financial health.
- There is uncertainty regarding the timeline for the closure of the Get transaction, which is dependent on Australian antitrust approval.
Q & A Highlights
Q: Has BlaBlaCar remained EBITDA positive despite the volatility in energy saving certificates in France? What are the expectations for the new French law regarding these certificates?
A: Yes, BlaBlaCar remains EBITDA positive even with the absence of this revenue stream for much of 2024. The new French law is expected to provide more stability and long-term presence for these certificates. The revenue stream is anticipated to return in 2025 at a slightly lower level than in 2023, but with more stability.
Q: Will VNV Global pursue buybacks after the closure of the Get transaction?
A: Buybacks are a priority, but they depend on reducing current indebtedness levels. Once the bond is paid back, VNV Global will be ready for new investments, including potential buybacks, depending on the stock's trading conditions.
Q: Can you confirm if the small assets sold post-quarter were at approximately NAV?
A: Yes, the small assets sold post-quarter were at approximately NAV, making these exits NAV neutral compared to the Q3 report.
Q: How capital-intensive is VOI, and what kind of return on capital is expected?
A: VOI requires between $15 million and $25 million annually in CapEx. With the EUR125 million bond framework, this is well covered. The business is expected to generate returns within a year of CapEx investments.
Q: What is the significance of the energy saving certificates for BlaBlaCar in the medium term?
A: In 2025, energy saving certificates are expected to contribute around 10% of BlaBlaCar's revenue. However, this percentage is likely to decrease as new markets and products are monetized.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.