Kinnevik (KINV) Q3 2024 earnings summary

Executive summary

• Completed the Tele2 divestment, ending a six-year transformation and increasing core companies' share of the portfolio to 52%, up from 30% at end-2022.

• Core companies, including Cityblock, Mews, Pleo, Spring Health, and TravelPerk, grew revenues by over 60% year-over-year and are expected to generate positive EBITDA as a group in 2025.

• NAV declined 5% to SEK 37.4bn, mainly due to a full write-down of VillageMD and SEK 0.7bn negative currency impact.

• Major investments were made in Spring Health (USD 80m in a USD 100m round, increasing ownership to 15%) and Aira (EUR 20m+), supporting rapid expansion.

• Portfolio is now more concentrated in high-performing assets, with continued investment in select early-stage ventures.

Financial highlights

• Net asset value (NAV) at quarter-end was SEK 37.4bn (SEK 132/share), down 5% from the previous quarter.

• Private portfolio value declined by 7% to SEK 25.2bn, mainly due to the VillageMD write-down and SEK 0.7bn negative currency impact.

• SEK 2.4bn invested year-to-date, with over 75% directed to focus companies.

• Net cash position of SEK 12.2bn at quarter-end, providing significant financial flexibility.

• Net loss of SEK 1,913m in Q3 2024 and SEK 4,417m for the first nine months.

Outlook and guidance

• Core companies expected to achieve positive EBITDA and cash flow profitability as a group in 2025, with revenue growth rates stabilizing above 40%.

• Anticipates deploying up to SEK 1bn in Q4 through larger funding rounds and secondary acquisitions.

• Capital Markets Day scheduled for 23 October to discuss long-term strategy and capital allocation.