The full year from January through December 2020 was very turbulent for Moment Group, as the strong start to the year was quickly transformed in March to one dominated by the Corona pandemic's negative consequences for the entertainment and experience industry. Net sales from operations for the full year totalled SEK 330 million (956), a reduction of almost 65%, and in Q4 the loss of revenue was no less than 88%, which reflects the industry's ability to operate under the draconian government restrictions that have characterised society since March. During the pandemic, the company's focus was twofold; most important was managing our very strained liquidity and implementing the refinancing that became available on 27 November. At the same time, the Group has made determined efforts to develop and implement robust strategies to enable its arenas to be profitably opened again as the Corona-related restrictions are lifted.
Up until February, the year began strongly with an operating profit greater than last year. This worsened severely over the following months with the group now reporting an operating loss of SEK -44 million for the fourth quarter, which is SEK 78 million greater than for the same period during the previous year, which is due to the closure of the Group's operations as a result of the much stricter restrictions. The operating loss for the full year totalled SEK -196 million (-44), which is SEK 152 million greater than the same period last year. The operating loss for the full year includes items affecting comparability in the amount of SEK 59 million, giving an adjusted EBIT of SEK -137 million. During the year, support in the amount of SEK 67 million was recognised as revenue under other operating income.
Since March, intensive efforts have been ongoing in Moment Group to parry the negative effects Covid-19 has on the Group. Apart from our event companies Minnesota and Hansen and the activity arenas STAR and Ballbreaker, most of the Group's businesses have been fully or largely closed during the pandemic as a result of the restrictions, which can almost be termed as a ban on trade. A purchase and investment freeze has been in place since March, and intensive efforts to reduce the weight of costs remain ongoing in parallel with the implementation of short-term furloughs and large-scale redundancies. Available state support packages have been sought to the full extent of our entitlement. With some success, continuous negotiations have been conducted with landlords during the pandemic, aimed at minimising rental costs for premises and arenas which, as a result of the restrictions, have not been possible to keep open. Despite all these measures, liquidity in the company has been under severe strain, and to avoid liquidity shortages, it would have been necessary for the level of activity in our operations to have normalised gradually from the end of the third quarter, 2020.
When the restrictions not only remained and but also increased during the autumn, intensive negotiations were held with bondholders, investors and shareholders aimed at securing access to working capital both to ensure short-term liquidity and to find a solution for the company's long-term financing. This refinancing was successfully completed in November.
During 2020, the board resolved to relocate the Group's head office to Stockholm in 2021. This will allow management to get closer to the core business operations as most of the Group's Swedish venues are located in and around the capital, and the move will also improve opportunities for future skills supply.
In parallel with day-to-day work and securing liquidity necessary for the Group to survive the pandemic, management groups in all operations are also working intensively to implement strategies and plans adopted by the board in 2020 for the post-corona period, where the focus will be on building on the essentially strong and healthy businesses that make up the Group. We have already come a long way in one of the most important strategic focus areas by creating a more flexible cost base for a more efficient, adaptable business for the post-corona era, enabling improved profitability across all four quarters of the year.
The corona pandemic is far from over and we must therefore continue to focus on pushing the authorities for substantially improved support packages for the industry and, once the situation allows, an appropriate easing of the restrictions that are crippling us today. This work is crucial for the future of the event industry.
Gothenburg, 5 February 2021.
pro tem CEO/Group CEO
+46-708 64 55 04
This disclosure comprises information that Moment Group AB is obliged to disclose according to the EU market abuse regulation. The information was submitted through the auspices of the above-mentioned contacts, for publication on 05 February 2021 at around 08:30 CEST
This information was distributed by Cision http://www.cisionwire.se/