Västra Hamnen Corp. Finance (VH) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw operating income fall to 2.3 MSEK from 4.6 MSEK year-over-year, with an operating loss of -1.5 MSEK compared to a profit of 1.1 MSEK last year.

• Net result after tax was -1.5 MSEK versus 0.8 MSEK in Q3 2023; EPS was -1.53 SEK (0.84 SEK last year).

• For Jan–Sep 2024, operating income was 11.0 MSEK (14.7 MSEK), with a net loss of -1.9 MSEK (profit of 2.9 MSEK in 2023).

• The CEO notes a challenging quarter with lower deal activity and longer transaction cycles, but expects a busier Q4.

Financial highlights

• Q3 revenues declined by about 50% year-over-year due to lower commission income.

• Operating expenses increased 8% to 3.9 MSEK, mainly from organizational growth and relocation costs.

• Cash flow for Q3 was -1.4 MSEK, compared to -0.4 MSEK last year; cash at period end was 6.7 MSEK (12.5 MSEK in 2023).

• Equity at September 30, 2024, was 8.9 MSEK (13.5 MSEK in 2023), or 8.90 SEK per share.

Outlook and guidance

• Several assignments are expected to close in Q4, with a more active period anticipated.

• Nasdaq's IPO Pulse Index signals a potential increase in IPO activity over the next six months, though still below 2021 levels.