Movinn (MOVINN) Q2 2024 earnings summary

Executive summary

• Group revenue grew 7% year-over-year in H1 2024 to DKK 44 million, with Denmark contributing DKK 40.4 million and Sweden DKK 3.6 million; Sweden achieved break-even EBITDA and 70% revenue growth.

• EBITDA from operations rose 118% to DKK 2.5 million (margin 5.7%), with Denmark at DKK 2.45 million and Sweden at DKK 41k.

• Net loss narrowed to DKK -0.96 million, a 57% improvement year-over-year; EPS improved to DKK -0.27.

• Strategic focus remains on core serviced apartment business (93.7% of revenue), tech-driven efficiency, and halting non-core initiatives.

• Positive cash conversion in Q2, with operational improvements and a structural agreement with a key client supporting future momentum.

Financial highlights

• Group EBITDA margin improved to 5.7% (from 2.8%); EBIT margin at -1.4% (from -5.3%); EBIT loss narrowed to DKK -0.6 million.

• Cash and cash equivalents at period end were DKK 4.9 million, down from DKK 11.5 million; net change in cash flow was DKK -2.1 million.

• Equity ratio decreased to 37.9% (from 41.8%); quick ratio at 1.05 (from 1.34); interest-bearing debt reduced to DKK 21.5 million.

• Revenue per unit rose 5.4% to DKK 196,000; average vacancy was 14.9% in H1.

• Cash conversion ratio at -21.2% for H1, but 58.7% in Q2; ROIC at -1.9% (improved from -3.7%).

Outlook and guidance

• Full-year 2024 group revenue guidance: DKK 88.5–93.5 million; EBITDA before listing/special items: DKK 8–10 million.

• Sweden's revenue guidance raised due to new Malmö aparthotel, but EBITDA unchanged due to ramp-up costs.

• No major investments planned in new units; growth to come from better utilization of existing capacity.

• Focus remains on sales efficiency, cost management, and cash conversion.

• Expecting improved demand in all domestic markets in H2 2024.