Moment Group - New Q1’21 liquidity carries Moment into H2’21

Q1 EBITDA of SEK 2m vs. ABGSCe of SEK -19m New funding yields cash position of SEK 64m EV/EBIT of 12x-9x for ‘22e-‘23e Reduced cost-base and government aid carry Q1’21 Moment reported total income in Q1’21 of SEK 50m (whereby SEK 33m refers to government aid), -9. 1% vs. ABGSC estimates.

This, in combination with a much reduced cost-base, resulted in Moment generating EBITDA of SEK 2m in Q1’21, far above our estimate of SEK -19m. EBIT as such amounted to SEK -13m versus our estimate of SEK -34m. Additional liquidity secured in Q1’21, sharp recovery H2’21e H1’21e continues to be pressured by the lockdown, even though the rollout of vaccines is progressing rapidly.

In our latest update we noted that management was working hard at securing additional liquidity to fund the company throughout H1’21e, which would then allow a potential sharp recovery in H2’21e in conjunction with an easing of the lockdowns. During Q1’21, Moment has among other actions received SEK 33m in government aid, implemented a new share issue which gained the company SEK 53m before transaction costs, and it re-negotiated the terms of its outstanding bond, resulting in a write-down of SEK 100m. As such, Moment reported a cash position of SEK 64m at the end of Q1’21, which we think will carry the company through the remaining lockdowns into the important H2’21e.

EV/EBIT 12x-9x for ’22e-’23e Based on our updated estimates and at the current share price, Moment is trading at EV/sales of 0. 7-0. 3x for ’21e-’23e, and EV/EBIT of 12-9x for ’22e-’23e.

In terms of ’22e, we factor in a return to 2019 levels for the top line, but see Moment’s new and flexible cost base resulting in improved margins compared to 2019.