Substantial growth in Movinn Sverige with a positive EBITDA and metrics improving in Danmark in line with expectation. We maintain guidance for the full year. 

Company Announcement nr. 46 - 2024
8 May 2022 09.00 CET. 
This company announcement contains inside information. 

Copenhagen, Denmark - The Interim Report covers results from the first quarter (Q1) of the year (1 January - 31 March 2024), as approved by Executive Management and the Board of Directors. 

In Q1 Movinn has realized revenue of 21.48 mDKK on group level - up from 20.63 mDKK in the same period last year - corresponding to a 4.1% revenue increase. Revenue in Sweden grew to 1.66 mDKK, which is up from 1 mDKK in the same period last year, corresponding a growth rate of 65.6% 

Realized EBITDA from existing danish operations was 1.18 mDKK corresponding to an EBITDA-margin of 6.0%. On group level, the operational EBITDA was nominally 1.24 mDKK, corresponding to a 5.7% EBITDA-margin. Realized EBIT was (255) tDKK in Denmark and (291 tkr) on Group Level corresponding to a (1.4%) EBIT-margin. Annualized Return On Invested Capital (ROIC) was (1.8%) for the existing danish operations and (2.2%) on group level. 

Bottom line metrics are improving following a disappointing 2023 and is in line with expectations. 

The Swedish operations have surpassed their break-even B/E point, which is in line with expectations and the performance in Denmark is in line with expectations. We continue to work on improving demand in secondary domestic markets. In Sweden, we launched a fourth market in the city of Västerås. The city has a diversified presence of large swedish and international corporations and has strategic importance in the developing key client relationships in Sweden. 

The Executive Management is executing on the sales-facing technological features, which was communicated in Q3 2023 and is starting to see the positive effects of the efforts. In parallel, executive management is working with key accounts and stakeholders to strengthen our long-term strucutural position as one of the market leaders in Denmark. 
The Executive management continue to pursue growth opportunities in Sweden - mainly in existing markets for synergy puposes - but also aiming at other key Swedish cities. Executive management remain committed to launching in Germany as well, but are not pressuring through a launch until all our existing markets are strenghtened. 

Financial highlights in Q1 2024: 

  • Revenue increased by 4.1% to 21.48 mDKK (20.63 mDKK) 
  • EBITDA margin from danish operations of 6.0% (5.0%)
  • EBITDA margin from consolidated operations of 5.7% (3.7%) 
  • EBIT margin of (1.2%) (3.6%) 
  • Return On Invested Capital (ROIC) of (2.2%) ((6.1%))
  • Maintaining guidance for the full year.

Business highlights in Q1 2024: 

  • We have launced a fourth market in Sweden.   
  • Sweden is surpassed the B/E point. 
  • Improvements in bottom line metrics across the line. 
  • We are deploying tech-features to automate our sales effort to a higher degree. 
  • We have a continued focus on the existing Danish operations - mainly secondary domestic markets.

Patrick Blok, Movinn CEO states: 
"The quarter has developed in line with expectations, so I am happy. We still have a lot of work to do, but we can the see the positive effects of some of the initiatives we deployed in Q4. Sweden is displaying high growth figures and has a positive EBITDA, which is a great achivement i think. We also launched a new market in Sweden, showing that we are committed to the cause - and we will continue to look for the right opportunities in Sweden. In Denmark, we are building and deploying technology inhouse to strenghten our sales, with the aim of automations and structurally improving our long term value drivers. Secondary markets remain weaker-than-average on the demand side, but we are doing a lot of work internally - and I see improved market conditions in the horizon. So I am confident".

Disclosure regulation

The attached Q1 Interim Report contains forward looking guidance. Such guidance are subject to risk and uncertainties as different factors, some of which are beyond the control of Movinn, may cause the actual development and results to differ from forward looking expectations. Interim Report has not been subject to audit or review.

Contacts

Patrick Blok
CEO, Movinn A/S
pb@movinn.dk
+45 28940879

Certified Advisor
Per Lönn
Västra Hamnen Corporate Finance AB
ca@vhcorp.se
+46 40 200 250

About Movinn

Founded in October 2014, Movinn A/S has grown to become one of Denmark's leading providers of fully serviced apartments, operating within the PropTech industry and delivering space-as-a-service to mainly large domestic and international corporations and organizations. To stay at the forefront of trends in the real estate and serviced living industry - and to diversify activities - the company has created a house of brands that cover both traditional and emerging client segments.
Inhouse, the company has created a highly integrated value chain and comprehensive tech-products (several software platforms & IoT hardware) to help provide the best possible service and quality to the company's clients and to help scale profitable growth. Movinn has a strong presence in Denmark, covering Aarhus, Odense and Copenhagen (the latter being the largest and primary market), and the company is planning to expand its operations into new European destinations.

Movinn A/S has received approval for admission to trading of its shares on Nasdaq First North Growth Market Denmark under the ticker "MOVINN".

https://news.cision.com/movinn/r/movinn-q1-2024---interim-report--high-growth-in-sweden-with-bottom-line-metrics-improving-in-across-,c3975555

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