Kinnevik (KINV) Q2 2024 earnings summary

Executive summary

• Completed the second and largest step of the Tele2 divestment, resulting in SEK 9.4bn proceeds and a SEK 6.4bn extraordinary cash distribution, marking a milestone in the transformation to a growth-focused investment firm.

• Net asset value (NAV) at SEK 39.3bn (SEK 140/share), down 4.7–5% quarter-over-quarter, mainly due to public market multiple contraction and a 7% write-down in the unlisted portfolio.

• Core growth companies now represent nearly half of portfolio value, up from 2% in Q4 2020, and delivered strong operational performance with average revenue growth of 70–71% over the last 12 months.

• E-commerce holdings (Oda/Mathem, Job&Talent, Instabee) continue to face challenges, with Oda/Mathem undergoing a major reset and write-down, while Instabee stabilized operations and raised new equity.

• Management team changes announced, including new Senior Investment Directors and departures.

Financial highlights

• Net cash position of SEK 12.8bn at quarter-end, with 81% of private companies by value profitable or funded to break even.

• SEK 12.2bn in net proceeds from the first two steps of the Tele2 sale in H1 2024; third step (SEK 0.6bn) expected later in 2024.

• Largest cash dividend in company history: SEK 23 per share, totaling SEK 6.4bn distributed.

• SEK 1,108m invested in H1 2024, mainly in core companies and new ventures, including SEK 598m in Q2 in Cityblock, Recursion, and Oda.

• Net loss of SEK 2.3bn in Q2 2024, compared to SEK 1.4bn loss in Q2 2023.

Outlook and guidance

• Capital deployment expected to intensify in H2 2024, with increased portfolio concentration in highest conviction companies.

• Core companies projected to grow revenues by over 40% and reach EBITDA break-even or positive in 2025.

• IPOs of core companies anticipated over the next 2–3 years, potentially shifting portfolio mix toward more public assets.

• October Capital Markets Day to outline long-term capital allocation framework and strategic roadmap.