T4F ENTRETENIMENTO S.A. T4F Entretenimento S.A.
4Q22 Earnings Release
T4F Entretenimento S.A.
B3: SHOW3
Closing on December 29th, 2022: R$2.39
4Q22 Average volume: 454 thousand (1.35% of the free float)
Market Cap on December 31st, 2022: R$161.1 million
Earnings Presentation through webcast http://ri.t4f.com.br/
Date: March 23rd, 2023
Portuguese
09:00 a.m. (US ET) | 10:00 a.m. (BR)
English
10:00 a.m (US ET) | 11:00 a.m. (BR)
4Q22 - Earnings Release
São Paulo, March 22nd, 2023 - T4F Entretenimento S.A. ("T4F" or "Company") (B3: SHOW3), leading live entertainment company in South America, announces the revised results for the fourth quarter of 2022 (4Q22). The financial and operational information herein were prepared according to International Financial Reporting Standards (IFRS) and the accounting practices adopted in Brazil.
4Q22 Highlights
- Gross cash balance of R$185.4 million and net cash balance of R$93.6 million, versus R$229.1 million and R$95.8 million, respectively, in 2021;
- EBITDA of R$40.2 million, reversing negative R$22.0 million in 2019;
- Recurring EBITDA of R$56.2 million, reversing negative R$5.9 million in 2019;
- End of restrictions on events imposed to contain the spread of COVID-19;
- Overthrow of PERSE vetoes, granting exemption on federal taxes for a period of 60 months;
- Payment of two installments of the debentures;
Financial Indicators (R$ million) | 2019 | 2021 | 2022 | Var. % | 4Q19 | 4Q21 | 4Q22 | Var. % |
(2022/2019) | (4Q22/4Q19) | |||||||
Net Revenue | 393.7 | 31.3 | 328.5 | -17% | 86.1 | 21.5 | 46.8 | -46% |
Events Promotion | 219.7 | 2.5 | 147.0 | -33% | 33.3 | 0.8 | 2.6 | -92% |
Live Music | 176.8 | 2.5 | 130.0 | -26% | 23.9 | 1.1 | 2.6 | -89% |
Family Events and Theater | 34.4 | 0.0 | 17.0 | -51% | 6.7 | - | - | -100% |
Sports Events | 8.5 | - | - | -100% | 2.7 | - | - | -100% |
Ticketing, F&B and Venues Operation | 78.4 | 24.5 | 117.2 | 50% | 25.6 | 16.6 | 28.7 | 12% |
Sponsorship | 95.6 | 4.4 | 64.2 | -33% | 27.2 | 4.1 | 15.5 | -43% |
Events Promotion | 77.0 | 3.7 | 62.8 | -18% | 18.1 | 3.5 | 15.4 | -15% |
Ticketing, F&B and Venues Operation | 18.6 | 0.6 | 1.4 | -92% | 9.1 | 0.6 | - | -100% |
Cost | (337.1) | (22.2) | (244.7) | 27% | (60.4) | (9.5) | (36.7) | 39% |
Gross Profit | 56.6 | 9.1 | 83.8 | 48% | 25.7 | 12.0 | 10.2 | -60% |
Gross Margin (%) | 14.4% | 29.0% | 25.5% | 11.1 p.p. | 29.9% | 55.7% | 21.7% | -8.2 p.p. |
SG&A | (73.0) | (34.5) | (43.3) | 41% | (25.0) | (9.2) | (11.2) | 55% |
Other Operating Revenues (Expenses) | (22.9) | (8.7) | (6.3) | 73% | 1.2 | (12.8) | 2.2 | 89% |
(-) Depreciation | 17.3 | 2.1 | 6.0 | -65% | 5.1 | 1.5 | 1.5 | -72% |
EBITDA | (22.0) | (54.1) | 40.2 | 283% | 7.0 | (8.6) | 9.4 | 34% |
EBITDA Margin (%) | -5.6% | -172.7% | 12.2% | 17.8 p.p. | 8.1% | -39.9% | 20.1% | 11.9 p.p. |
Recurring EBITDA (excl. one-off effects)⁽¹⁾ | (5.9) | (26.1) | 56.2 | n.a. | 2.6 | 3.1 | 4.6 | 75% |
Recurring EBITDA Margin (excl. one-off effects)⁽¹⁾ | -1% | -84% | 17.1% | 18.6 p.p. | 3.0% | 14.2% | 9.8% | 6.8 p.p. |
Other Results with Investments | (8.3) | - | - | 100% | - | - | - | n.a. |
Financial Result | (38.0) | (10.7) | (38.1) | 0% | (5.5) | (10.4) | 1.3 | 124% |
Income Tax And Social Contribution | 13.8 | 2.3 | (4.5) | -132% | (2.4) | 0.7 | (0.6) | 75% |
Net Result | (71.8) | (64.5) | (8.4) | 88% | (6.0) | (19.7) | 8.6 | 243% |
Net Margin (%) | -18.2% | -206.1% | -2.6% | 15.7 p.p. | -7.0% | -91.8% | 18.4% | 25.4 p.p. |
Net Financial Result (excl. one-off effects)⁽¹⁾ | (26.2) | (29.7) | 14.7 | 156% | (7.8) | 1.7 | (12.2) | -56% |
Net Margin (excl. one-off effects)⁽¹⁾ | -6.6% | -95.0% | 4.5% | 11.1 p.p. | -9.1% | 7.7% | -25.9% | -16.9 p.p. |
Operational Indicators | 2019 | 2021 | 2022 | Var. % | 4Q19 | 4Q21 | 4Q22 | Var. % |
(2022/2019) | (4Q22/4Q19) | |||||||
Live Music | ||||||||
Events Promoted | 176 | - | 30 | -83% | 46 | - | 9 | -80% |
Tickets Sold (000) | 868 | - | 372 | -57% | 318 | - | 34 | -89% |
Average Ticket Price (R$) | 210 | - | 367 | 75% | 225 | - | 214 | -5% |
Family Events and Theater | ||||||||
Events Promoted | 379 | - | 293 | -23% | 91 | - | 76 | -16% |
Tickets Sold (000) | 274 | - | 184 | -33% | 70 | - | 58 | -17% |
Average Ticket Price (R$) | 137 | - | 129 | -6% | 140 | - | 153 | 9% |
Total | ||||||||
Events Promoted | 555 | - | 323 | -42% | 137 | - | 85 | -38% |
Tickets Sold (000) | 1,142 | - | 556 | -51% | 388 | - | 92 | -76% |
Average Ticket Price (R$) | 192 | - | 288 | 50% | 210 | - | 175 | -17% |
- The description of the non-recurring effects excluded on EBITDA and Net Income for 4Q19, 4Q21 and 4Q22, as well as the non-recurring effects of 2019, 2021 and 2022, are available in the "EBITDA and Recurring EBITDA" and " Net Result" in this document.
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4Q22 - Earnings Release
Message from the Management
2022 was a year marked by the return of live entertainment, after the pandemic. In all the markets we operate, the remaining restrictions to contain the spread of the virus were removed, allowing the return of our major events. After almost two years without operating, we repositioned our portfolio and reviewed the organizational structure, with the objective of operating with healthier and recurring margins.
We ended the year with positive EBITDA in all quarters, totaling R$40.2 million and reversing the negative R$22.0 million result of 2019, prior to the pandemic. The cash and debt structure in the end of the year became healthier, in addition to the reduction in total debt, delivering a clean cash flow from events canceled during the pandemic. Gross cash balance was BRL 185.4 million, versus BRL 229.1 million in 2021. The latter increased by receipts from events that took place in 2020.
The first major event we promoted in the year was Lollapalooza 2022, an edition initially scheduled for March 2020, but postponed twice due to COVID-19 restrictions, until the beginning of this year. After that, we had the first edition of Festival Turá, a celebration of Brazilian music, with positive result in the first edition, additionally to the return of the Popload Festival in October, and many shows throughout the year, with emphasis on Jessie J, Billy Idol, Kenny G, Jão and Maria Bethânia.
We resumed promoting Broadway shows with the musical The Addams Family, which ran from March to August 2022, and its success earned him four Bibi Ferreira awards, the most important of Brazilian this industry. As a continuation of theater operations, in November we started the musical Anastasia, which will run until the beginning of May. We also took our first steps in immersive experiences. Major horror movie franchises from Warner Bros were part of the interactive scene.
Argentina and Chile also returned to operations at an accelerated pace, with better-than-expected operating results in both ticket and theater operations. In addition to ticket sales in neighboring countries, INTI's operation in Brazil continues on an upward trajectory, gaining important clients in the live music market, where it did not operate before joining T4F. Thus, the investment made in its acquisition is justified by the return of synergy in costs, besides the addition of recurring and diversified revenues.
The year 2023 begins with high expectations for the entertainment market, still with pent-up demand after the pandemic, and a greater than normal supply of artists. In addition to solo artist shows, we continue to work to strengthen our platform of festivals, Broadway productions and taking bigger steps into immersive experiences.
In the month of March, we promoted the second edition of Grls! Festival, and concerts by Paramore and The Black Crowes. With it, we were able to carry out our purpose of bringing people together through exciting experiences to celebrate life. Life that can be best celebrated with music, leaving the shadow of the pandemic more and more behind.
Fernando Alterio
CEO
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4Q22 - Earnings Release
Comments on Consolidated Economic and Financial Performance
To have a better comparative analysis, exceptionally this year, we will analyze the indicators versus 2019, the last year without the impact of COVID-19 in Brazil.
Data referring to 4Q21 and 2021 will also appear throughout this document, being used as a complement to analyzes when necessary.
Operational Indicators
Number of | Tickets (000) |
events | |
During 4Q22, we held 107 events, totaling 57 thousand tickets sold. In the same period of 2019, before the pandemic, we had held 144 events, selling 253 thousand tickets.
In 4Q22, we continued with the Warner Bros. 'Parque do Terror' immersive experience, where we performed 57 dates, accounted for in Family and Theater, with a total sale of 13 thousand tickets. In this same indicator, we count the beginning of the musical Anastasia, with 43 presentations and sales of 24 thousand tickets. In 4Q19, we promoted 77 performances of the musical O Fantasma da Ópera, with 56 thousand tickets sold.
In Live Music, we held 7 events, one of which was the Popload Festival, at the beginning of the quarter, in addition to the indoor shows we promoted in the period, such as - Pixies, David Garrett and Metronomy, in addition to three shows by Kenny G in São Paulo, Rio de Janeiro and Porto Alegre. There were 20 thousand tickets sold versus 197 thousand tickets for the 67 events held in the same period of 2019, when we still owned the venues in São Paulo, Rio de Janeiro and Belo Horizonte.
The repositioning carried out during the pandemic was reflected in the Company's results in 2022. We were able to deliver healthier margins, even with a smaller number of events and a smaller structure. 2022 Gross Margin of R$ 25.5% against 14.4% in 2019 demonstrates this.
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4Q22 - Earnings Release
Net Revenue
Net Revenue (R$ million) | 2019 | 2021 | 2022 | Var. % | 4Q19 | 4Q21 | 4Q22 | Var. % |
(2022/2019) | (4Q22/4Q19) | |||||||
Events Promotion | 219.7 | 2.5 | 147.0 | -33% | 33.3 | 0.8 | 2.6 | -92% |
Live Music | 176.8 | 2.5 | 130.0 | -26% | 23.9 | 1.1 | 2.6 | -89% |
Family Events and Theater | 34.4 | 0.0 | 17.0 | -51% | 6.7 | (0.3) | - | -100% |
Sports Events | 8.5 | - | - | -100% | 2.7 | - | - | -100% |
Ticketing, F&B and Venues Operation | 78.4 | 24.5 | 117.2 | 50% | 25.6 | 16.6 | 28.7 | 12% |
Sponsorship | 95.6 | 4.4 | 64.2 | -33% | 27.2 | 4.1 | 15.5 | -43% |
Events Promotion | 77.0 | 3.7 | 62.8 | -18% | 18.1 | 3.5 | 15.4 | -15% |
Ticketing, F&B and Venues Operation | 18.6 | 0.6 | 1.4 | -92% | 9.1 | 0.6 | - | -100% |
TOTAL | 393.7 | 31.3 | 328.5 | -17% | 86.1 | 21.5 | 46.8 | -46% |
Events Promoted | 555 | - | 323 | -42% | 144 | - | 107 | -26% |
Tickets Sold (000) | 1,142 | - | 556 | -51% | 253 | - | 57 | -77% |
Average Ticket Price (R$) | 192 | - | 288 | 50% | 129 | - | 188 | 46% |
In total net revenue, the Company reached BRL 46.8 million in 4Q22, a decrease of 46% compared to 4Q19, with BRL 86.1 million. This decrease is due to the lower number of events and tickets, as shown above, in addition to higher revenue from sponsorships recognized in 4Q22 related to content in this period. The result of this indicator is due to:
Net revenue from Event Promotion of R$2.6 million in the fourth quarter of 2022, 92% lower than 4Q19, with R$33.3 million. In 2019 we had more indoor shows, as we still had the venues, in addition to the sessions of the musical O Fantasma da Ópera and in 2022 the value is basically for the Popload Festival, plus concerts by David Garrett, Kenny G and Metronomy.
Event Promotion R$ mm
Net revenue from Box Office, Food & Beverage and Venues Operations increased in 4Q22 compared to 4Q19, totaling R$ 28.7 million against R$ 25.6 million. This increase is mainly due to the sales of Lollapalooza 2023, Paramore concerts, with sold-out on all dates, and higher-than-expected sales of third-party events also reflected positively in this line through Ticketek in Argentina and INTI in Brazil.
Net revenue from sponsorships totaled R$15.5 million in 4Q22, versus R$27.2 million in 4Q19. This reduction is mainly due to the greater number of events held in the same period of 2019, in addition to the naming rights of the own venues. In 2022, the number is mainly made up of sponsorship of the Popload festival and pre-sales of Lollapalooza.
Box Office, A&B, and Venues Operations R$ mm
Sponsorships
R$ mm
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T4F Entretenimento SA published this content on 22 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 March 2023 04:12:10 UTC.
