Q2 2024 Kinnevik AB Earnings Call Transcript
Key Points
- Kinnevik AB (KNEVF) completed the second and largest step of the Tele2 divestment, significantly enhancing their financial resources.
- The company reported strong operational performance in core companies like Cityblock, Mews, Pleo, Spring Health, and TravelPerk.
- Kinnevik AB (KNEVF) ended the quarter with SEK12.8 billion in net cash, providing a solid financial position.
- 81% of their private companies by value are either profitable or funded to breakeven, indicating strong financial health.
- The company distributed the largest cash dividend in its history, amounting to SEK6.4 billion, demonstrating shareholder value creation.
- Net asset value (NAV) decreased by 4.7% in the second quarter, reflecting challenges in the market.
- The fair value of unlisted investments was written down by 7%, driven by significant multiple contraction in public markets.
- E-commerce companies in their portfolio, such as Oda and Job&Talent, have struggled post-pandemic, impacting overall performance.
- The company faced significant write-downs in investments like Oda, reflecting challenges in the e-commerce sector.
- Cedar's valuation was impacted by a 34% write-down due to multiple contractions and a new employee stock option program, indicating operational challenges.
Good morning, everyone, and welcome to the presentation of Kinnevik's result for the second quarter of 2024. I'm Georgi Ganev, Kinnevik's CEO; and with me today is our CFO, Samuel Sjöström; and our Director of Corporate Communications, Torun Litzén.
On today's call, we will walk you through the key events during the quarter, including our most recent investment activity and the completion of the second and largest step of the Tele2 divestment. I will also give a short update on our core growth companies and how they continue to deliver a strong operational performance and the continued challenges we also see in our e-commerce companies.
Samuel will then cover our financial position and the development of our net asset value. Finally, I will talk about our priorities and expectations as we embark further on our next phase as a leading growth investor. And as usual, we will end with a Q&A.
So let's start on page 4. Closing the second step in the divestment of Tele2 to iliad/NJJ in the quarter is a true milestone for
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