Release Date: July 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- VNV Global AB (LTS:0A89, Financial) successfully sold Gett for $83 million, which will improve liquidity once the transaction closes.
- The company has a net asset value (NAV) of $600 million, reflecting a diverse investment portfolio.
- BlaBlaCar, a major holding, is performing well with positive EBITDA and cash flow, and has recently acquired Obilet, enhancing its market position.
- Voi, another key investment, is EBITDA positive and expected to become EBIT positive, indicating strong financial health.
- The portfolio is becoming increasingly EBITDA positive, with 62% of holdings achieving this status, indicating overall portfolio strength.
Negative Points
- The NAV per share decreased by 10% this quarter, primarily due to valuation adjustments in BlaBlaCar, Gett, and HousingAnywhere.
- The sale of Gett was slightly below NAV, impacting the overall valuation negatively.
- The company is still awaiting regulatory approval for the Gett transaction, which introduces uncertainty regarding the timing of liquidity improvements.
- The investment portfolio is becoming increasingly concentrated, with the top three holdings representing over 70% of total NAV, which could pose a risk if any of these investments underperform.
- The company is trading at a significant discount to its NAV, indicating potential market skepticism or undervaluation.
Q & A Highlights
Q: How should one think about buying back stock now that VNV Global might enter a net cash position post-sale of Gett?
A: Per Brilioth, Managing Director, stated that they are ready to buy back stock and have the necessary approvals. They plan to proceed once the Gett transaction closes, which will put them in a net cash position. They are set up to buy back stock and see it as a favorable opportunity given the current stock levels.
Q: Which portfolio company is closest to a sale or an IPO?
A: Per Brilioth indicated that BlaBlaCar is the closest to an IPO, potentially in the latter part of next year. While not formally announced, the company is mature enough for an IPO. Other companies like Voi and HousingAnywhere are not as close to an IPO.
Q: How do you view the liquidity situation, and are there any further exits on the agenda?
A: Per Brilioth mentioned that after selling Gett, they expect to be net cash positive. They are advanced in discussions for liquidity from other portfolio companies, which could result in a significant cash balance by year-end, potentially between $20 million and $70 million, depending on the success of these transactions.
Q: Do you plan to keep any mature companies as cash generators for new investments?
A: Per Brilioth confirmed this ambition, citing BlaBlaCar and Voi as potential cash generators. The goal is to have a company similar to Avito, which provided significant cash flow, allowing for operational expenses and new investments without relying on exits.
Q: What is the current environment for primary and secondary transactions, and what pricing can be expected?
A: Per Brilioth stated that they are not under pressure to sell and are looking for fair prices. Recent sales like Booksy and Gett were around NAV, and future sales will be based on price and portfolio strategy. They are advanced in discussions for some transactions, which are expected to be around or above NAV.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
