Performance for the quarter was at a historically high level and we note positive signals from our efforts to restore profitability during 2020.
FOURTH QUARTER AND 1 JANUARY - 31 DECEMBER 2019
2019 2019 2018 2019 2019 2018
(SEK million) Oct Oct Oct Jan Jan Jan-
-Dec -Dec -Dec -Dec -Dec -Dec
IFRS IAS IAS IFRS IAS IAS
16 17 17 16 17 17
Net sales 425 425 391 956 956 1,101
Pro rata sales 339 339 317 820 820 936
Operating profit/loss 79 36 19 52 -30 -14
Operating profit/loss 34 31 14 -44 -51 -34
Operating margin 8% 7% 4% -5% -5% -3%
Operating margin, pro 10% 9% 4% -5% -6% -4%
Earnings per share 0.63 0.65 0.67 -2.85 -2.66 -2.58
A WORD FROM THE CEO
I can confidently state that in terms of financial performance, the fourth quarter is the strongest in the Group's history, and that operating cash flow has been strengthened. However, the full year can be summarised as one of the worst financial performances the Group has delivered. We note that the initiatives we pushed through, especially during the last six months of the year, are beginning to give results, and there continues to be unrealised potential in all business areas.
Moment Group's business is characterised by seasonal operations, and the fourth quarter has a very high level of activity. This year was no different. Net sales totalled SEK 425 million (391), an increase of SEK 31 million compared to the previous year, which is mostly attributable to Live Entertainment. Operating profit/loss for the quarter is a vast improvement on previous years, and adjusted for non-recurring expenses in conjunction with the CEO replacement and the impairment of a right-of-use asset, it totalled SEK 60 million, calculated under current regulations. Taking the above expense into account, and adjusted for the effect of IFRS 16, earnings were SEK 57 million (27), which is an improvement of SEK 29 million over the previous year adjusted for non-recurring expenses. Broken down per business area, Live Entertainment showed an improvement of SEK 27 million and Immersive Venues SEK 5 million, while Event stood for a deterioration of SEK 2 million.
At the beginning of the quarter, prepaid ticket revenues were at a high level, suggesting a strong period ahead, as presented here in summary. During the quarter we noted an increase in earnings in the business areas Live Entertainment and Immersive Venues, and there also remains a continued potential for further performance improvements in the very important final quarter. Prepaid ticket revenue levels also look strong moving forward. At the same time, our event companies are also sending positive signals for 2020 as their selling-in levels in the run-up to spring are historically high.
Kungsportshuset in Gothenburg continued to burden the income statement, but it's pleasing to note that the measures taken are beginning to have an impact and that the Christmas by Wallmans initiative during November and December provided results beyond expectations. The unit's performance during the fourth quarter was just over SEK 3 million better than the same period the previous year despite the closure of the event arena for public operations in October.
Our highest priority focus area remains the restoration of profitability. We will thus continue reviewing business models and risk management with the ambition of increasing revenues and creating more dynamic cost bases. This is important for the company's continued advance.
We look forward to taking on 2020 with the positive signals the autumn has provided.
Gothenburg, 7 February 2020
pro tem CEO/Group CEO
+46 703 94 80 92
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