In This Article:
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Net Asset Value (NAV): SEK39.2 billion or SEK139 per share at the end of Q4 2024.
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Private Portfolio Value: Increased by SEK3 billion to SEK28.2 billion in Q4 2024.
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Net Cash Position: SEK10.9 billion at the end of Q4 2024.
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Core Companies Revenue Growth: 55% growth in 2024.
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Core Companies Profitability: Spring Health and TravelPerk were profitable in Q4 2024.
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TravelPerk Funding Round: Raised $200 million, valuing the company over 50% above Q3 mark.
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Investment in TravelPerk: SEK485 million in Q4 2024, total investment SEK1.4 billion.
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Investment in Enveda: Additional SEK438 million in Q4 2024.
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Full Year Investments: SEK3.6 billion during 2024.
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Private Portfolio Valuation Increase: 7% in SEK terms to SEK28.1 billion in Q4 2024.
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Core Companies Valuation Increase: 10% growth in value in Q4 2024, excluding Cityblock.
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Currency Impact: SEK1.7 billion positive impact from currency tailwinds in Q4 2024.
Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Kinnevik AB (KNEVF) has a strong cash position with a net cash of SEK10.9 billion, providing flexibility for future investments.
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The company's core companies, including Cityblock, Mews, Pleo, Spring Health, and TravelPerk, have shown significant revenue growth of 55% and improved margins in 2024.
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TravelPerk and Spring Health, two of Kinnevik's largest investments, were profitable in Q4 2024, allowing for increased growth investments.
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Kinnevik's private portfolio increased in value by SEK3 billion in Q4 2024, with a 7% rise in fair value driven by a large write-up in TravelPerk.
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The company has a disciplined capital allocation strategy, focusing on high-performing core companies and promising ventures like Enveda and Agreena.
Negative Points
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Cityblock's valuation faced a significant write-down due to multiple contractions in the healthcare sector, despite operational progress.
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Pleo's valuation declined by 10% due to increased OpEx investments impacting short-term margins.
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The private portfolio's valuation adjustments included a SEK450 million to SEK500 million hit due to more conservative valuations of smaller loss-making companies.
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The company faces challenges in accurately valuing Cityblock, with its valuation being significantly lower than co-investors' assessments.
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Kinnevik's core companies are refocusing on growth, which may lead to deviations from profitability in the short term, particularly for TravelPerk.
Q & A Highlights
Q: Can you provide insights on the growth trajectory for Spring Health and TravelPerk, given their recent profitability and focus on growth? A: Spring Health is closer to an IPO and will maintain profitability throughout 2025, focusing on expansion opportunities. TravelPerk, on the other hand, is aggressively expanding into the US and will operate at a high single-digit to low double-digit EBITDA loss margin in 2025, likely returning to profitability in 2026. (Samuel Sjostrom, CFO)