Kinnevik NAV improves 3 percent, provides update on new investments

In trading update for the period January 1 to June 30, 2017, Kinnevik said NAV increased by 3 percent to 81.9billion Swedish krona (9.96 billion dollars), or 298 Swedish krona (36 dollars) per share, driven mainly by Zalando and Tele2. Adding back dividend paid of 2.2billion Swedish krona (267 million dollars), the value increase was 6 percent during the quarter. The company has announced the appointment of Georgi Ganev as CEO with effect from January 1, 2018.

“Continued high investment management activity combined with solid operating performance in our larger companies resulted in a 3 percent increase in our net asset value in the second quarter. We made a significant investment to become the largest shareholder in Com Hem, complementing our existing mobile and media companies in the Nordics, and successfully divested our remaining shares in Rocket Internet and Lazada. Our financial position is strong. we ended the quarter with a net debt position of 1 percent of our portfolio value,” said Joakim Andersson, the company’s acting CEO and CFO, in a press statement.

Kinnevik companies posts positive sales

On 18 July, Zalando announced preliminary results for the second quarter 2017, growing revenues by 19-21 percent to 1,091-1,109million euros (1,271-1,291 million dollars). The company expects to achieve an adjusted EBIT of 80-86million euros (93-100 million dollars) in the quarter, corresponding to a margin of 7.3-7.8 percent.

Zalando announced the launch of Zalando Zet, a new membership program that offers customised premium services like same day delivery, pick-up of returns on demand as well as additional benefits such as personal fashion advice or early access to sales.

Global Fashion Group (GFG) said number of active customers grew by 13 percent, totalling 9.6 million, NMV growth amounted to 17 percent and revenue growth amounted to 18 percent. The adjusted EBITDA margin improved by 11 percentage points to -13 percent, largely driven by path-to-profit initiatives.

On May 24, GFG announced a strategic partnership with Emaar Malls in the Middle East, whereby Emaar Malls acquired 51 percent of Namshi.

Qliro Group sales increased by 7 percent in the second quarter driven by an 18 percent increase in total GMV for CDON Marketplace and a 10 percent sales increase for Nelly. External merchant’s sales in CDON Marketplace grew by 83 percent and EBITDA improved by 23million Swedish krona (2.7 million dollars) to 36million Swedish krona (4.3 million dollars). QFS’ business volume increased by 34 percent during the second quarter.

Update on investment management activities

Kinnevik said total investments in the second quarter were 3.9billion Swedish krona (0.48 billion dollars), of which 3.7billion Swedish krona (0.45 billion dollars) was invested to acquire a 18.5percent stake in Com Hem.

The company also said that it gained total divestments of 3.1billion Swedish krona (0.38 billion dollars), which included 2.1billion Swedish krona (255 million dollars) from the sale of Kinnevik's remaining shareholding in Rocket Internet and 1 billion Swedish krona (115million dollars) from the sale of Kinnevik's remaining shareholding in Lazada. On July 21, the company announced an investment of 65million dollars in Betterment, increasing the ownership to 16 percent.

Picture:Facebook/Zalando

 

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