Fram Skandinavien

As of 31st of Oct 2024, the net asset value amounted to 131 mSEK (36 SEK per share), which was approximately +343% above the closing price of the Fram B share on the same day, and -4% vs. latest reported NAV. The main negative contributor to NAV continues to be the decrease in peer multiples of Carmudi’s trading business (as tech investors continue to shift from focusing more on profits than GMV - see more below).

Fram has made additional progress in reducing losses across ventures in the portfolio. Carmudi’s EBITDA results for Q3 2024 showed a loss of -0.03 mSEK, a decrease of 94% compared to the same period last year. For the month of September, Carmudi also reached break-even for the first time. EveHR’s EBITDA loss was -0.4 mSEK for Q3 2024, a decrease of 35% compared to the same period last year. Liven Technology continued to experience moderate revenue growth (+13% y-on-y), with an EBITDA loss of -0.4 mSEK for the quarter.

Third-quarter operational losses from continuing operations were reduced to -0.9 mSEK this year, down from -3.3 mSEK in the third quarter of 2023.

Investor sentiment has swung significantly in Southeast Asia over the past 12-24 months. Rather than putting emphasis on GMV and growth, the investors are reluctant to make investments or acquisitions in early stage companies that have not yet proven profitable growth. Profit metrics such as EBITDA is meaningfully favored above GMV and/or revenue growth. Therefore, Fram considers it unlikely to find interested buyers for its core holdings before they reach breakeven and profitable growth thereafter. As a result, the primary focus remains on driving the ventures toward profitability. As a consequence, market GMV multiples of peers have come down over past periods and it remains a medium term priority to shift out of unprofitable GMV transactions for Carmudi.