Kinnevik AB

Latest Results (12.06.2024):

Q1 2024 Financial Overview

In the first quarter of 2024, Kinnevik AB reported a Net Asset Value (NAV) of SEK 47.9 billion, or SEK 170 per share, marking a slight decrease of 0.5 percent from the previous quarter. This was primarily due to a SEK 1.3 billion write-down in the fair value of unlisted assets and a significant SEK 2.0 billion write-down related to its stake in VillageMD, influenced by WBA’s goodwill impairment.

Tele2 Divestment Impact

Kinnevik AB completed a major strategic move by divesting its entire stake in Tele2 to iliad/NJJ for SEK 13 billion. This transaction not only reshapes Kinnevik’s investment portfolio but also strengthens its financial position, enabling further focus on growth-oriented investments. The board has proposed an extraordinary cash distribution of SEK 6.4 billion, or SEK 23 per share, leveraging this liquidity to enhance shareholder value.

Core Growth Companies Performance

During Q1 2024, Kinnevik AB’s core growth companies, including Cityblock, Mews, Pleo, Spring Health, and TravelPerk, demonstrated robust performance. These companies have collectively grown their revenues by 75 percent over the last twelve months and are on a clear path to profitability, with expectations to generate positive EBITDA by 2025. These five companies now represent 46 percent of Kinnevik’s growth portfolio.

Investment in Mews

Kinnevik AB led a funding round for Mews, investing SEK 419 million, as part of its strategy to concentrate investments in high-conviction growth companies. Mews, which is redefining the hospitality industry with its innovative software solutions, has shown promising growth and expansion into new markets, justifying Kinnevik’s increased investment to accelerate its global reach and product development.

Financial Position and Outlook

Following the divestment of Tele2 and the proposed extraordinary cash distribution, Kinnevik AB maintains a strong and flexible financial stance with SEK 13.9 billion in pro forma net cash. This positions the company well to capitalize on new investment opportunities and support its existing portfolio, despite the flat NAV growth impacted by WBA’s accounting adjustments related to VillageMD in Q1 2024.