Dividend Sweden (DIV) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased to 3.2 MSEK from 2.4 MSEK year-over-year, but net income after tax was -2.8 MSEK compared to -1.6 MSEK.

• For the first nine months, net sales were 7.5 MSEK (21.8 MSEK prior year), with net income after tax of 14.2 MSEK (2.0 MSEK), mainly due to portfolio revaluations.

• The company’s largest holding, Evendo, launched a new AI search service and a travel guide app, driving strong portfolio growth.

Financial highlights

• Q3 2024 net sales: 3.2 MSEK (2.4 MSEK Q3 2023); Q3 net income: -2.8 MSEK (-1.6 MSEK); EPS: -0.03 SEK (-0.02 SEK).

• 9M 2024 net sales: 7.5 MSEK (21.8 MSEK); net income: 14.2 MSEK (2.0 MSEK); EPS: 0.15 SEK (0.03 SEK).

• Equity at period end: 75.8 MSEK (65.6 MSEK); cash and equivalents: 1.4 MSEK (1.1 MSEK).

• Portfolio value: 71.7 MSEK (63.5 MSEK), with 0.87 MSEK in listed and 70.8 MSEK in unlisted holdings.

• Substansvärde per aktie: 0.82 SEK (0.87 SEK); soliditet: 94% (86%).

Outlook and guidance

• Management expects continued positive market conditions, supported by interest rate cuts and increased risk appetite.

• Fewer ownership spread deals are expected for the year, but at least one is anticipated in Q4.

• Anticipates increased advisory assignments and guarantee commissions due to more listings and rights issues.

• Positive outlook for Q4 2024 and especially for 2025, with expectations of reduced discount to NAV.