Interim Report - H1 2024

H1 2024 marks a half year with continued focus on improving bottom-line metrics and cash conversion.

Financial highlights
We have realized revenue og 40.4 mDKK in Denmark and 44.0 mDKK on Group level corresponding to a 7% revenue growth compared to the same period last year as well as a 118% improvement in EBITDA-margin. Realized EBITDA on group level was 2.5 mDKK, which is up from 1.15 mDKK in the comparable period of last year.

We are reporting a stronger cash conversion rate of 58.7% in Q2 2024 and a cash positive Q2 on a standalone basis. This is a result of our stronger focus on improving bottom-line metrics and better managemenet of working capital. We are satisfied with this improvement and will continue to have a complete focus on bottom line performance thoughout the year.

Business highlights

• Launched a new market in Sweden in Q1. It was a smaller launch, but the market has strategic importance.
• We signed a multi-year framework agreement with a C25 company in Q2, covering several of our existing markets.
• Head of Operations, Jakob Thye was promoted to COO in Q2.
• We signed a long term operating lease on a hotel / aparthotel property in a top location in Malmö, containing 22 rooms and apartments when in full operations. The property is expected to generate 6.5 mSEK - 8.5 mSEK in revenue and 1.3 - 1.8 mSEK in EBITDA. We have not had any substantial investments in the property, so the EBITDA and EBIT are more or less identical.

Technology updates
We have deployed several technology features to automate our sales efforts and operating efficiency.
The inhouse-built technology is an important part og our sales structure, and during september 2024, we are launching the final piece of the sales-related tech roadmap - corporate booking platform Velocity Pro. This will give structural clients and partners the ability to source, manage and book without us being a stopping factor, meaning we can disconnect the relationship between sales and employees in the sales organization. It will also increase the general velocity of sales in the marketplace, which has great potential for the company - but also to improve the workflow of our important partners.

Updated guidance
We expected a marginally higher revenue in the first half of 2024 and consequently a higher EBITDA, meaning we have updated our guidance based on our expectations for the last part of 2024.
We are narrowing our EBITDA-guidance on Group level to the lower end of the original range.
We adjust our revenue-guidance in Sweden upwards, while keeping EBITDA-guidance for Sweden constant, due to general ramp up costs of hotel TwentySix.

CEO, Patrick Blok, States:
”We expected to be a bit further on both revenue and EBITDA in Denmark, but we can see that our efforts in H1 are generating the proper momentum. Q2 displayed a good cash conversion and generated a positive cash flow on a standalone-basis. We have launched a new market in Sweden and we are launching a hotel and apartment hotel in in Malmö in late august. We have done a multi-year structural, framework agreement with an important corporate client that covers several of our existing markets and our deployment of newly developed technology is moving fast. I expect this to make us a better partner and stronger competitor in the long run. So we are keeping busy. In this writing stage, Odense remains the runt of the litter, so to speak, and our focus is now on getting that market back to previous peaks”.