Vow: Revenue doubling y/y, positive EBITDA contribution from all segments, but can they hit FY top-line guidance? - Nordea

Q3 trading update released this morning (the company reports semi-annually, no quarterly consensus available), posting a fundamentally strong report with a big beat vs. Q3 ’21 levels and EBITDA positivity from all segments, however short-term focus will be on whether the company will be able to reach top-line FY22 targets at the beginning of the year. At the group level, Vow posted Q3 revenues of NOK 194m, an almost doubling vs. Q3 2021, with EBITDA coming in at NOK 25m, implying a 12.9% EBITDA margin (vs. 8.2% in Q3 ’21 and 13.3% at the mid-point in 2022). At the segmental level, Cruise represented the largest sector with NOK 82m (NOK 61.7m Q3 21) revenue contribution, whilst Aftersales rebounded y/y (NOK 32m vs NOK 14m in Q3 21) with the company citing cruise ships around the world resuming normal operations. In the Landbased segment, revenues were NOK 79m, with EBITDA margins of 15.1%, higher than 13.5% at H1 22 and -20.6% Q3 ’21. Vow’s backlog including options came in at NOK 2,189m, 3% above Q3 21 levels but slightly below levels at the H1 stage.