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Yahoo
12-06-2025
- Business
- Yahoo
Molten Ventures PLC (GRWXF) Full Year 2025 Earnings Call Highlights: Strong Realizations and ...
Fair Value Growth: GBP72 million or 5% increase, comprised of GBP180 million valuation uplift and GBP108 million valuation reductions. Adverse FX Headwinds: GBP22 million impact. GPV (Gross Portfolio Value): GBP1.4 billion. NAV (Net Asset Value): GBP1.2 billion. Realizations: GBP135 million, exceeding GBP100 million guidance. Investments: GBP73 million into the portfolio, plus GBP34 million from EIS and VCT funds. Share Buybacks: GBP15 million completed, with a further GBP15 million ongoing. NAV per Share: 671p, up from 662p last year-end. Cash Position: GBP89 million at year-end, plus GBP30 million from post-period realizations. Undrawn RCF (Revolving Credit Facility): GBP60 million available. Target Annual Returns: 20% through the cycle, with an average annual return of 28% since IPO. Portfolio Realizations Target: 10% of portfolio value annually, with an average of 15% since IPO. Core Portfolio Average Revenue: Over GBP400 million. Core Portfolio Gross Margins: 70%. Core Portfolio Growth Rate: 35%-36%. Core Portfolio Profitability: 44% of companies turning to profitability. Warning! GuruFocus has detected 4 Warning Signs with VRA. Release Date: June 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Molten Ventures PLC (GRWXF) reported strong realizations, exceeding their guidance with GBP135 million in exits, demonstrating effective portfolio management. The company achieved a fair value uplift of GBP72 million or 5%, despite adverse FX headwinds, indicating robust portfolio performance. Molten Ventures PLC (GRWXF) has a strong cash position with GBP89 million at year-end and additional liquidity from recent realizations. The company has implemented a balanced capital allocation policy, including share buybacks, enhancing NAV per share returns. Molten Ventures PLC (GRWXF) is well-positioned with a refocused strategy on Series A and B investments, aiming to drive shareholder value and capitalize on differentiated return profiles. Despite the fair value uplift, the GPV and NAV slightly decreased due to realizations exceeding investments. Adverse FX movements negatively impacted the fair value growth by GBP22 million. The technology sector's public company multiples have softened, affecting some portfolio company valuations. The company acknowledges that it is currently investing at about half the level of capital it could be for the size of the market. Molten Ventures PLC (GRWXF) faces competition for the best deals, requiring disciplined pricing strategies to ensure value. Q: How have valuation multiples for new investments changed compared to a year ago, and what is the current competition for capital? A: Ben Wilkinson, CEO, explained that AI investments are receiving a 30% premium in pricing. Overall, pricing has remained static compared to the previous year. Companies are becoming more capital efficient, raising less capital and extending the duration between funding rounds to about two years. Competition for the best deals remains, but Molten Ventures is disciplined with pricing. The European market invested about 66 billion last year, similar to levels from three years ago, indicating a healthy depth of capital. Q: What progress has been made in raising third-party capital, and can we expect any transactions this year? A: Ben Wilkinson, CEO, stated that raising third-party capital is a long-term goal. They are exploring the right vehicle for this, such as a GPLP structure. The most immediate third-party structure is Molten East, targeting a first close of around EUR100 million within the financial year, focusing on Eastern European development centers. Q: What is the expected split of investments for this year, and what is the typical timeframe for realizing secondary investments? A: Ben Wilkinson, CEO, mentioned that follow-ons are expected to be around GBP15 million to GBP20 million, similar to previous years. Approximately GBP15 million will go into Fund of Funds, and another GBP15 million to GBP20 million into new secondary opportunities. The typical timeframe for realizing secondary investments is around two to three years. Q: How should we think about realizations over the next few years, and any updates on the Connect Ventures investments? A: Ben Wilkinson, CEO, noted that the core portfolio, valued at over GBP800 million, should turn to cash over the next two to four years. Regarding Connect Ventures, Typeform and Soldo are mature businesses with potential pathways to market, depending on market conditions. Q: How is Molten Ventures positioning itself for the AI wave, and are there any changes in the investment team? A: Ben Wilkinson, CEO, highlighted that they are focusing on hiring into the investment team, including a Chief People Officer to manage junior team members' growth. They are open to bringing in more talent to align with technological shifts and ensure the team has the necessary expertise. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
27-03-2025
- Business
- Yahoo
Evoke PLC (EIHDF) (Q4 2024) Earnings Call Highlights: Navigating Growth and Challenges
Revenue Growth: Full-year revenue growth of 3%, with second-half growth of 8%. Adjusted EBITDA: Increased by 4% to GBP312 million. Adjusted EBITDA Margin: 22% in the second half of 2024, expected to be 20% for full-year 2025. Online Growth: Online markets grew 12% year-over-year. UK Gaming Growth: UK online gaming up 9% for the full year. International EBITDA Growth: 31% growth due to operating leverage and cost reductions. Retail EBITDA Decline: Declined by 33% due to high fixed costs. Net Debt: Increased by GBP30 million to GBP1.79 billion. Leverage Ratio: Reduced to 5.7 times, with a target of 5 times by year-end 2025. Cost Savings: GBP15 million to GBP25 million further savings expected in 2025. Cash Flow: Net cash increased by GBP19 million, with cash burn of GBP65 million for the year. Revenue from Core Markets: 90% of revenue from core markets. Revenue Growth Target: 5% to 9% for the full year 2025. Q1 2025 EBITDA Increase: Expected to be GBP18 million to GBP28 million higher than last year. ARPU Increase: Up 6% for the year and 27% in Q4. Warning! GuruFocus has detected 8 Warning Signs with EIHDF. Release Date: March 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Evoke PLC (EIHDF) reported a 3% revenue growth for the full year, with an 8% growth in the second half, aligning with their midterm target of 5% to 9%. The company achieved an adjusted EBITDA growth of 4% to GBP312 million, surpassing previous expectations. Evoke PLC successfully returned to growth for the first time in three years, driven by strong performance in their core markets. The acquisition of Winner expanded their market presence in Romania, contributing to a 12% year-over-year growth in online coal markets. The company has implemented a GBP30 million cost optimization program, with further savings expected in 2025, enhancing profitability and operational efficiency. Evoke PLC's leverage remains high, with net debt increasing by GBP30 million to GBP1.79 billion, and the leverage target of below 3.5 times being postponed to 2027. The company faced a cash burn of around GBP65 million in 2024, primarily due to exceptional costs related to business transformation. Despite improvements, the retail segment experienced a 33% decline in EBITDA due to a high proportion of fixed costs. The company anticipates being slightly below their 5% to 9% revenue growth guidance in Q1 2025 due to various short-term impacts. Evoke PLC's stock price has decreased by approximately 30% since the CEO's tenure began, raising concerns about shareholder value and the timeline for dividend returns. Q: Can you explain the building blocks for achieving your 5% to 9% NGR growth this year, especially considering the challenging Q1 and Q4 comps? A: Sean Wilkins, CFO: In Q1, we faced short-term impacts from safer gambling measures and were lapping elevated marketing from the prior year. Despite these challenges, we expect improvements in product offerings, retail enhancements, and customer lifecycle management to drive growth. Our investments in AI and strategic initiatives will also support this trajectory. Q: Is retail growing in Q1 '25, and are you taking market share? A: Per Widerstrom, CEO: Yes, we are seeing growth and market share gains in retail. We've made significant improvements, including new gaming machines and enhanced in-store experiences. These efforts are part of our strategy to reset the retail channel and improve competitiveness. Q: Why has the leverage target been postponed to 2027, and what investments are causing this delay? A: Sean Wilkins, CFO: The delay is due to increased investments in retail refurbishments, AI, and online products, alongside exceptional costs for achieving cost efficiencies. These investments are expected to pay off over time, contributing to our long-term growth and profitability. Q: Can you comment on the trend of declining sportsbook stakes and increasing sportsbook margins? A: Per Widerstrom, CEO: The shift towards a more sustainable customer mix and focus on high-value customers has impacted stakes. However, our enhanced product offerings and improved trading capabilities are driving higher margins, supporting long-term profitability. Q: What are the expectations for sports net revenue margin in Q1 '25 compared to Q1 '24? A: Sean Wilkins, CFO: We anticipate a slight increase in margin due to improvements in customer and product mix. Our ongoing efforts to enhance sportsbook trading and risk management will continue to support margin growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
