T4F ENTRETENIMENTO S.A. T4F Entertainment S.A.
4Q23 Results
T4F Entertainment S.A.
B3: SHOW3
Closing 12/28/2023: BRL 2.11
4Q23 Average Volume: 549.67 (1.9% of free float)
Market Cap on 12/28/2023: BRL 154.2 million
Presentation of results via webcast
http://ri.t4f.com.br/
Date: 21/03/2024
Portuguese
10:00 a.m. (BR) | 09:00 a.m. (US ET)
English
11:00 a.m. (BR) | 10:00 a.m. (US ET)
Results - 4Q23
São Paulo, March 20, 2024 - T4F Entretenimento S.A. ("T4F" or "Company") (B3: SHOW3), announces the audited results for the year ended December 31, 2023. The consolidated financial statements are presented in accordance with the International Financial Reporting Standards (IFRS) and the accounting practices adopted in Brazil.
4Q23 Highlights
- Gross Cash of R$149.3 million and Net Cash of R$94.0 million against R$185.4 million and R$93.6 million in the same period of 2022.
- EBITDA of R$28.7 million, approximately 1000% higher than the R$2.6 million recorded in the same period of 2022;
- Delivery of the first edition of the Primavera Sound Festival produced by the Company, in December 2023
- Delivery of Taylor Swift's The Eras Tour, with six shows in Brazil;
- Opening of sales of Turá São Paulo and Porto Alegre 2024;
Quarter | 4Q23 | 2023 | ||||
Financial Indicators (R$ million) | 2022 | 2023 | Var. % | 4Q22 | 4Q23 | Chg. % |
(2023/2022) | (4Q23/2Q23) | |||||
Net Revenue | 328,5 | 700,8 | 113% | 46,8 | 339,7 | 625% |
Events Promotion | 147,0 | 452,1 | 208% | 2,6 | 294,9 | >999% |
Live Music | 130,0 | 409,8 | 215% | 2,6 | 279,6 | >999% |
Family Events and Theater | 17,0 | 42,3 | 150% | - | 15,3 | n.a. |
Ticketing, F&B and Venues Operation | 117,2 | 129,1 | 10% | 28,7 | 12,0 | -58% |
Sponsorship | 64,2 | 119,6 | 86% | 15,4 | 32,8 | 113% |
Events Promotion | 62,8 | 119,6 | 90% | 15,4 | 32,8 | 113% |
Ticketing, F&B and Venues Operation | 1,4 | - | -100% | - | - | n.a. |
Cost | (244,7) | (557,6) | -128% | (36,7) | (294,8) | -704% |
Gross Profit | 83,8 | 143,1 | 71% | 10,2 | 44,9 | 342% |
Gross Margin (%) | 25,5% | 20,4% | -5,1 p.p. | 21,7% | 13,2% | -8,5 p.p. |
SG&A | (43,3) | (46,3) | -7% | (11,2) | (15,3) | -36% |
Other Operating Revenues (Expenses) | (6,3) | (7,1) | -14% | 2,2 | (1,9) | -189% |
(-) Depreciation | 6,0 | 2,7 | -54% | 1,5 | 1,0 | -29% |
EBITDA | 40,2 | 92,4 | 130% | 2,6 | 28,7 | >999% |
EBITDA Margin (%) | 12,2% | 13,2% | 1,0 p.p. | 5,6% | 8,5% | 2,9 p.p. |
Recurring EBITDA (excl. one-off effects)⁽¹⁾ | 56,2 | 79,7 | 42% | 4,6 | 10,4 | 127% |
Recurring EBITDA Margin (excl. one-off effects)⁽¹⁾ | 17% | 11,4% | -5,7 p.p. | 9,8% | 3,1% | -6,7 p.p. |
Financial Result | (38,1) | (26,2) | 31% | (15,1) | (1,7) | 89% |
Income Tax And Social Contribution | (4,5) | (5,2) | -17% | (1,0) | (1,8) | -81% |
Net Result | (8,4) | 58,2 | 790% | (14,9) | 24,3 | 263% |
Net Margin (%) | -2,6% | 8,3% | 10,9 p.p. | -31,8% | 7,1% | 38,9 p.p. |
Net Financial Result (excl. one-off effects)⁽¹⁾ | (5,8) | 66,4 | n.a. | (14,1) | 23,7 | 268% |
Net Margin (excl. one-off effects)⁽¹⁾ | -1,8% | 9,5% | 11,3 p.p. | -30,2% | 7,0% | 37,2 p.p. |
Operational Indicators | 2022 | 2023 | Var. % | 4Q22 | 4Q23 | Chg. % |
(2023/2022) | (4Q23/2Q23) | |||||
Live Music | ||||||
Events Promoted | 30 | 33 | 10% | 30 | 14 | -53% |
Tickets Sold (000) | 372 | 801 | 115% | 372 | 458 | 23% |
Average Ticket Price (R$) | 367 | 317 | -13% | 367 | 439 | 20% |
Family Events and Theater | ||||||
Events Promoted | 293 | 255 | -13% | 293 | 56 | -81% |
Tickets Sold (000) | 184 | 294 | 60% | 184 | 47 | -75% |
Average Ticket Price (R$) | 129 | 0 | -100% | 129 | 256 | 98% |
Total | ||||||
Events Promoted | 323 | 288 | -11% | 107 | 70 | -35% |
Tickets Sold (000) | 556 | 1.095 | 97% | 57 | 505 | 785% |
Average Ticket Price (R$) | 288 | 232 | -19% | 188 | 422 | 124% |
- The description of the non-recurring effects excluded from EBITDA and Net Income for 4Q22 and 4Q23, as well as the non-recurring effects for 2022, 2023, are available in the "EBITDA and Recurring EBITDA" and "Net Income (Loss)" sections hereof.
1
Results - 4Q23
Message from the Administration
We begin this message by thanking the support and trust of our shareholders, customers and business partners who have been by our side in more than 20 thousand events held by T4F throughout its history.
In 2023, the live entertainment market continued to experience recovery after the challenges faced during the COVID-19 pandemic. For the Company, it was a year of transformation in our festival portfolio. Where we held the last edition of the Lollapalooza Brazil festival under the organization of the Company and started to promote the Primavera Sound São Paulo festival, one of the largest festivals in Europe, which was received with great enthusiasm by the public and highly praised by the critics. This year's edition featured attractions such as The Killers, The Cure, Pet Shop Boys, Marisa Monte and Carly Rae Jepsen. We also started the geographical expansion of the Turá festival, holding its first edition in Porto Alegre, replicating the excellence of the festival held in São Paulo, and which featured great names in Brazilian music such as Caetano Veloso and Emicida.
Also in the live music segment, we performed the tour of the band Paramore in South America and the tour 'The Eras Tour' of the singer Taylor Swift in Brazil.
In the Family segment, we concluded the season of the musical Anastasia and held the immersive exhibition Marvel Avengers S.T.A.T.I.O.N in Brazil. In July, we started the season of the musical The Lion King, in partnership with Disney, with critical and public success in its new season in Brazil.
With this, we ended the year 2023 with more than 330 events held. More than 1 million tickets were sold through our platforms for festivals, concerts, musicals, and immersive experiences. We surpassed R$700 million in net revenue in the year, with a growth of more than 113% compared to 2022. Adjusted EBITDA, the way we evaluate the performance of our business, resulted in R$79.7 million, a growth of 42% compared to the previous year. Our more balanced calendar of events held in the 1st and 2nd semester meant that the result was obtained consistently throughout
2023. In particular in Argentina, our second market, we had to deal with adverse macroeconomic conditions such as hyperinflation and currency devaluation which, due to the country's accounting standards, generated a negative effect of R$10.6 million on our financial results, but with no effect on cash.
Annual net income was R$58.2 million, expanding 11 points of margin compared to the previous year, given our constant focus on operational efficiency and technology in ticket sales. Regarding the company's cash, we ended the year at R$109.3 million in net cash, maintaining the necessary liquidity to continue investing in our purpose in 2024, which is to unite people through exciting experiences to celebrate life.
Fernando Altério | Serafim Abreu |
Chairman of the Board of Directors | Chief Executive Officer |
2
Results - 4Q23
Comments on Consolidated Economic and Financial Performance
Operational Indicators
No. of events | Tickets (000) |
During 4Q23, we held 70 events for which we sold 505 thousand tickets. We highlight the tour of singer Taylor Swift, The Eras Tour, the Primavera Sound Festival and the first edition of Turá Porto Alegre, in addition to the continuity of the musical The Lion King.
In 4Q22, we held a Popload Festival at the beginning of the quarter, in addition to the indoor shows we promoted in the period such as Pixies, David Garrett, Metronomy, as well as three Kenny G shows in São Paulo, Rio de Janeiro and Porto Alegre. In Family and Theater, we had the musical Anastasia on display and as an immersive experience, the Terror Park.
In the year, we held 268 events compared to 323 in the same period of the previous year. In addition, the number of tickets almost doubled, as we had Lollapalooza, outdoor concerts with large capacity, Primavera Sound, among others.
3
Results - 4Q23
Net Revenue
Net Revenue (R$ million) | 2022 | 2023 | Var. % | 4Q22 | 4Q23 | Chg. % |
(2023/2022) | (4Q23/2Q23) | |||||
Events Promotion | 147,0 | 452,1 | 208% | 2,6 | 294,9 | >999% |
Live Music | 130,0 | 409,8 | 215% | 2,6 | 279,6 | >999% |
Family Events and Theater | 17,0 | 42,3 | 150% | - | 15,3 | n.a. |
Ticketing, F&B and Venues Operation | 117,2 | 129,1 | 10% | 28,7 | 12,0 | -58% |
Sponsorship | 64,2 | 119,6 | 86% | 15,4 | 32,8 | 113% |
Events Promotion | 62,8 | 119,6 | 90% | 15,4 | 32,8 | 113% |
Ticketing, F&B and Venues Operation | 1,4 | - | -100% | - | - | n.a. |
TOTAL | 328,5 | 700,8 | 113% | 46,8 | 339,7 | 625% |
Events Promoted | 323 | 288 | -11% | 107 | 70 | -35% |
Tickets Sold (000) | 556 | 1.095 | 97% | 57 | 505 | 785% |
Average Ticket Price (R$) | 288 | 232 | -19% | 188 | 422 | 124% |
In 4Q23, net revenue totaled R$339.7 million and grew more than 625% compared to the same quarter of the previous year, mainly driven by Event Promotion, with Taylor Swift's Primavera Sound Festival and The Eras Tour and Sponsorships. In consolidated 2023, we surpassed 1 million tickets sold, 97% more than the previous year. Net revenue reached R$701 million and grew 113% compared to 2023, with Event Promotion growing 208% and Sponsorships growing 86%.
Net revenue from Event Promotion went from R$2.6 million in the fourth quarter of 2022 to R$294.9 million in 2023, an increase of 11,079%, mainly due to the large number of Live Music events and the continuity of the musical The Lion King.
Net revenue from Box Office Operations, F&B and Venues decreased in 4Q23 compared to 4Q22, totaling R$12.0 million versus R$28.7 million. This decrease is mainly due to the lower number of events held in the period, since this account includes the sales of food and beverages in the events held.
Net revenue from sponsorships totaled R$32.8 million in 4Q23, versus R$15.4 million in 4Q22. The increase is mainly due to the partnerships of the Turá Festival and the Primavera Sound festival.
Event Promotion
R$ mm
Box Office, F&B, and Venues Operations R$ mm
Sponsorships
R$ mm
4
Results - 4Q23
Gross profit
Gross Profit (R$ million) | 2022 | 2023 | Var. % | 4Q22 | 4Q23 | Chg. % |
(2023/2022) | (4Q23/2Q23) | |||||
Net Revenue | 328,5 | 700,8 | 113% | 46,8 | 339,7 | 625% |
Cost | (244,7) | (557,6) | -128% | (36,7) | (294,8) | -704% |
Gross Result | 83,8 | 143,1 | 71% | 10,2 | 44,9 | 342% |
Gross Margin (%) | 25,5% | 20,4% | -5,1 p.p. | 21,7% | 13,2% | -8,5 p.p. |
Events Promotion | (34,6) | (60,0) | -73% | (20,5) | (10,2) | 50% |
Ticketing, F&B and Venues Operation | 54,1 | 83,5 | 54% | 15,2 | 22,4 | 47% |
Sponsorship | 64,3 | 119,6 | 86% | 15,5 | 32,8 | 112% |
Gross Profit in 4Q23 was R$ 44.9 million, which means an increase of 342% when compared to the same period in 2022, with R$ 10.2 million. This expansion is due to the margin mix with higher ticket sales, mainly due to (i) The Eras Tour, by singer Taylor Swift, (ii) Primavera Sound festival, also considering the indoor shows of Primavera na Cidade (iii) Turá Porto Alegre Festival and (iv) The Lion King.
Operating Expenses
SG&A (R$ million) | 2022 | 2023 | Var. % | 4Q22 | 4Q23 | Chg. % |
(2023/2022) | (4Q23/2Q23) | |||||
Sales | (0,8) | (1,0) | -21% | (0,2) | 0,0 | 104% |
General and Administrative | (38,0) | (39,7) | -4% | (9,7) | (14,2) | -47% |
Management Compensation | (4,5) | (5,7) | -26% | (1,3) | (1,0) | 21% |
SG&A | (43,3) | (46,3) | -7% | (11,2) | (15,3) | -36% |
% Total/Net Revenue | 13,2% | 6,6% | -6,6 p.p. | 23,9% | 4,5% | -19,4 p.p. |
Other Operating Revenues (Expenses) | (6,3) | (2,6) | 59% | 2,2 | (1,5) | -171% |
Total | (49,6) | (53,5) | -8% | (9,0) | (17,2) | -91% |
% Total/Net Revenue | 15,1% | 7,6% | -7,5 p.p. | 19,2% | 5,1% | -14,2 p.p. |
The total SG&A in 2023 was R$46.3 million, an increase of R$3 million compared to 2022.
Total Other operating expenses were negative R$ 1.5 million in 4Q23, compared to positive R$ 2.2 million in 4Q22. In the year, the increase is due to the recognition, in the line of Other Results with Investments, of R$
4.6 million referring to the variable portion in the acquisition of the INTI ticketing company, which reflects the results of this business unit above that projected at the time of its acquisition in 2020.
5
Results - 4Q23
EBITDA and Adjusted EBITDA
EBITDA Reconciliation (R$ million) | 2022 | 2023 | Var. % | 4Q22 | 4Q23 | Chg. % |
(2023/2022) | (4Q23/2Q23) | |||||
Net Result | (8,4) | 58,2 | 790% | (14,9) | 24,3 | 263% |
(+) Income Tax and Social Contribution | 4,5 | 5,3 | 18% | 1,0 | 1,8 | 81% |
(+) Net Financial Result | 38,1 | 26,2 | -31% | 15,1 | 1,7 | -89% |
(+) Depreciation | 6,0 | 2,7 | -54% | 1,5 | 1,0 | -29% |
=EBITDA | 40,2 | 92,4 | 130% | 2,6 | 28,7 | >999% |
EBITDA Margin (%) | 12,2% | 13,2% | 1,0 p.p. | 5,6% | 8,5% | 2,9 p.p. |
(+) Provision of contingencies | 16,0 | 2,6 | -84% | 2,0 | 1,2 | -39% |
(+) Write-offs related to the venue in São Paulo | 0,0 | 4,6 | n.a. | - | 0,4 | n.a. |
(+) Provisions for impairment | - | - | n.a. | - | - | n.a. |
(-) Disposal of shareholdings in Vicar | - | - | n.a. | - | - | n.a. |
(-) Ajuste de Impostos referente a Lollapalooza | (19,9) | (19,9) | ||||
Recurring EBITDA (excl. one-off effects) | 56,2 | 79,7 | 42% | 4,6 | 10,4 | 127% |
Recurring EBITDA Margin (%) (excl. one-off effects) | 17,1% | 11,4% | -5,7 p.p. | 9,8% | 3,1% | -6,7 p.p. |
The quarter ended with EBITDA of R$ 28.7 million, an increase of 1,031% compared to EBITDA of R$ 2.6 million in the same period of 2022.
In the adjusted view of Recurring EBITDA, R $ 10.4 million in 4Q23 represents a growth of 127% compared to the same period in 2022, which totaled R$ 4.6 million. In both periods, we have adjustments related to agreements, court decisions and contingency provisions, recognized in "Other operating expenses". In addition, this quarter, we adjusted the R$ 0.4 million, already mentioned above, referring to the variable portion in the acquisition of INTI.
This growth was reflected in the year-to-date EBITDA. The result was 130% higher than the same period in 2022, being R$ 92.4 million against R$ 40.2 million. In terms of Recurring EBITDA, the increase was 42%, being R$79.7 million against R$56.2 million.
Financial Result
Financial Result (R$ million) | 2022 | 2023 | Var. % | 4Q22 | 4Q23 | Chg. % |
(2023/2022) | (4Q23/2Q23) | |||||
Financial Income | 19,4 | 16,7 | -14% | 5,2 | 0,6 | -88% |
Interest Income | 3,0 | 4,7 | 57% | 1,9 | (2,4) | -225% |
Income over Financial Investments | 13,8 | 11,4 | -18% | 1,0 | 2,9 | 177% |
Others | 2,6 | 0,6 | -76% | 2,2 | 0,2 | -93% |
Financial Expenses | (26,1) | (19,9) | 24% | (7,5) | (1,0) | 87% |
Interest Cost | (4,5) | (4,9) | -9% | (2,0) | (0,5) | 74% |
Interests with Borrowings - Debentures | (16,0) | (7,0) | 56% | (3,6) | - | 100% |
Tax on Financial Transactions | (2,1) | (2,9) | -38% | (1,3) | 0,3 | 121% |
Others | (3,6) | (4,6) | -30% | (0,6) | (0,7) | -13% |
Financial Income - Financial Expenses | (6,7) | (3,3) | 51% | (2,3) | (0,4) | 84% |
Exchange and Monetary Variations | (31,4) | (23,0) | 27% | (12,7) | (1,3) | 90% |
Exchange Variation | (6,6) | (2,0) | 70% | (8,7) | (2,9) | 67% |
Monetary Variation | (12,5) | (10,2) | 18% | (2,0) | (1,9) | 6% |
Hiperinflation Variation | (12,4) | (10,8) | 12% | (2,1) | 3,4 | 263% |
Net Financial Result | (38,1) | (26,2) | 31% | (15,1) | (1,7) | 89% |
In 4Q23, the difference between Financial Revenues and Expenses was negative by R$0.4 million, mostly impacted by interest assets and liabilities, as well as income from financial investments.
In addition, we have effects that do not directly affect cash, in the exchange, monetary and hyperinflationary variation lines, which, together, were negative by R$1.3 against R$12.7 million, also negative, in the same period of 2022, as a result of the constant inflationary process in Argentina.
6
Results - 4Q23
Net Income (Loss)
Net Result (R$ million) | 2022 | 2023 | Var. % | 4Q22 | 4Q23 | Chg. % |
(2023/2022) | (4Q23/2Q23) | |||||
Result Before Taxes | (4,0) | 63,4 | n.a. | (13,9) | 26,0 | 287% |
(-) Income Tax and Social Contribution (Current) | (3,2) | (5,2) | -63% | (0,4) | (2,6) | -570% |
(-) Income Tax and Social Contribution (Deferred) | (1,3) | (0,0) | 97% | (0,6) | 0,8 | 239% |
Net Result | (8,4) | 58,2 | 790% | (14,9) | 24,3 | 263% |
Net Margin (%) | -2,6% | 8,3% | 10,9 p.p. | -31,8% | 7,1% | 38,9 p.p. |
(+) Provision of contingencies | 2,7 | 8,2 | 205% | 0,8 | (0,5) | -171% |
Net Result (excl. one-off effects) | (5,8) | 66,4 | n.a. | (14,1) | 23,7 | 268% |
Net Margin (%) (excl. one-off effects) | -1,8% | 9,5% | 11,3 p.p. | -30,2% | 7,0% | 37,2 p.p. |
In 4Q23, the Company recorded net income of R$ 24.3 million, 263% higher than the amounts recorded in 4Q22, with a net loss of R$ 14.9 million. Excluding the non-recurring effects of the quarter, we recorded net income of R$23.7 million, against negative R$14.1 million in the same period of 2022. This improvement is due to major events in the quarter, such as Primavera Sound and Taylor Swift's tour, as well as a continued focus on cost and expense containment. In 2023, we recorded Net Income of BRL 58.2 million, against a net loss of BRL 8.4 million in the previous year, growing by 11 margin points.
Working Capital
Working Capital (R$ million) | 4Q22 | 2Q23 | 4Q23 | Chg. % | Chg. % |
(4Q23/4Q22) | (4Q23/2Q23) | ||||
Current Assets | 133,6 | 312,6 | 142,3 | 7% | -54% |
Accounts Receivable | 76,1 | 106,8 | 65,0 | -15% | -39% |
Inventories | 1,7 | 3,6 | 1,9 | 13% | -46% |
Advances to Suppliers and Anticipated Costs | 24,2 | 170,2 | 35,8 | 48% | -79% |
Recoverable Taxes | 31,2 | 31,5 | 29,4 | -6% | -7% |
Other Receivables | 0,4 | 0,5 | 10,2 | n.a. | >999% |
Current Liabilities | 233,3 | 452,2 | 195,3 | -16% | -57% |
Accounts Payable (Suppliers) | 61,1 | 126,0 | 145,9 | 139% | 16% |
Advances from Clients | 154,5 | 313,0 | 29,5 | -81% | -91% |
Payroll, Provisions and Social Contributions | 6,4 | 4,2 | 4,8 | -25% | 14% |
Recoverable Taxes | 10,1 | 7,2 | 13,4 | 33% | 85% |
Dividends Payable | - | - | - | n.a. | n.a. |
Other Payables | 1,3 | 1,8 | 1,7 | 34% | -5% |
Dividends Payable | (99,7) | (139,6) | (53,0) | 47% | 62% |
Working capital in 4Q23 was negative R$53 million versus negative R$139.6 million in 3Q23, and negative R$99.7 million in 4Q22.
In the comparison between 4Q23 and 3Q23, this is due to: (i) a decrease in the value of Accounts Receivable, mainly reflecting the receipt of credit card sales from Taylor Swift's concerts, held in June, and the Primavera Sound Festival 2023 (ii) an increase in the suppliers' bill for the costs of the 2023 Primavera Sound Festival to be paid in 2024, (iii) decrease in Customer Advance accounts, due to the fact that we did not have large openings at the box office in the last quarter for the subsequent period.
7
Results - 4Q23
Cash and Indebtedness
Cash and Indebtedness (R$ million) | 2022 | 2023 | Var. % | 4Q22 | 2Q23 | 4Q23 | Chg. % | Var. % |
(2023/2022) | (4Q23/4Q22) | (4Q23/2Q23) | ||||||
Balance in Cash and Financial Investments (BoP)⁽²⁾ | 229,1 | 185,4 | -19% | 232,6 | 132,7 | 172,5 | -26% | 30% |
Operating Cash Flow | 7,3 | 17,1 | 135% | (28,8) | 170,7 | (65,6) | -128% | -138% |
Investment Cash Flow | (2,1) | (5,4) | -163% | (0,5) | 3,2 | (0,4) | 15% | -113% |
Financing Cash Flow | (59,7) | (55,7) | 7% | (29,0) | (133,9) | 39,0 | 234% | 129% |
Exchange Variance | 10,9 | 7,9 | -28% | 11,1 | (0,3) | 3,9 | -65% | >999% |
Increase (Reduction) in Cash and Equivalents | (43,6) | (36,1) | 17% | (47,2) | 39,8 | (23,2) | 51% | -158% |
Balance in Cash and Financial Investments (EoP) | 185,4 | 149,3 | -19% | 185,4 | 172,5 | 149,3 | -19% | -13% |
Borrowings and Financing - Short Term | 42,0 | 39,4 | -6% | 42,0 | - | 40,1 | -4% n.a. | |
Lease Liabilities (Current) | 6,3 | 2,8 | -56% | 6,3 | 2,8 | 2,8 | -55,63% | 2% |
Borrowings and Financing - Long Term | 40,0 | - | -100% | 40,0 | - | - | -100% n.a. | |
Lease Liabilities (Non-Current) | 3,5 | 13,1 | 277% | 3,5 | 13,8 | 13,1 | 277,26% | -5% |
Total Indebtedness | 91,8 | 55,3 | -40% | 91,8 | 16,5 | 56,1 | -39% | 239% |
Net Cash (Debt) | 93,6 | 94,0 | 0% | 93,6 | 156,0 | 93,2 | 0% | -40% |
We ended 4Q23 with R$149.3 million in Gross Cash, versus R$172.5 million in 3Q23 and R$185.4 million in 4Q22. The Company's cash EBITDA was impacted by the extraordinary currency devaluation in Argentina, carried out in December 2023, and the mismatch between cash and competence at the Lollapalooza Festival and the pre-operative costs of the musical The Lion King. The main effects on Cash Flow were:
- Operating Cash Flow: Consumption of R$ 65.6 million this quarter, with payment of fees for Primavera Sound artists and other production costs for 4Q23 events.
- Cash Flow from Investments: The negative Cash Flow from Investments of R$0.4 million is due to: (i) reclassification between Cash Flow from Investments and Operating Cash Flow, (ii) investments in management and development software, also from the INTI ticket company, and (iii) investments in modernization of the Renault Theater and improvement of its surroundings for the premiere of the musical The Lion King.
- Financing Cash Flow: R$39.0 million due to the raising of short-term contracts for exchange rate protection of foreign currency loans made during the period for the payment of international fees.
- Finally, there was a positive exchange rate variation of R$ 3.9 million. in 4Q23, due to the appreciation of the real against the dollar, impacting foreign currency assets and assets.
As a result, we ended 4Q23 with net cash of R$93.2 million.
Event Pipeline
We will remain committed to expanding our festival platform, with licensed brands, such as Primavera Sound,
but also with our own brands, such as Festival Turá, where we plan to expand to more venues, in addition to
São Paulo and Porto Alegre, bringing a broad experience to the public and partner brands. With the
expectation of an improvement in the Argentine economy, we hope to promote more events in the country
in 2024.
We have just done the 30th anniversary tour of singer Laura Pausini and we already have two concerts of
singer Jessie J confirmed, one in São Paulo and the other in Rio de Janeiro.
8
Results - 4Q23
The musical The Lion King will continue to play at Teatro Renault, thus making it possible to serve an even
larger audience than that of its first time in Brazil.
SHOW3 Performance
The closing price of our shares on December 28, 2023, the last trading session of the month, was R$ 2.11, a devaluation of 11.7% when compared to the price of December 29, 2022, at R$ 2.39. In the period, the shares had peaks in their quotations, with the highest being R$ 2.47 on November 8th.
Its devaluation in relation to the IBOVESPA is mainly due to the appreciation of the country's commodity papers. Despite this, the banking, retail and service sectors, in general, fell and affected the IBOVESPA and the Brazilian capital markets during the period.
150,0 | 9.000 | |
125,0 | 7.500 | |
100,0 | 6.000 | |
75,0 | 4.500 | |
50,0 | 3.000 | |
25,0 | 1.500 | |
0,0 | 0 | |
Volume | IBOV | SHOW3 |
9
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T4F Entretenimento SA published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 12:10:37 UTC.
