Thursday, May 8, 2014

AB Kinnevik Q1 2014 results

 "most of the unlisted companies within Kinnevik’s online portfolio are still unprofitable. However, the larger companies in the portfolio are well capitalised and can afford continued investments until they reach break-even."
But what will happen if  those companies never reach the break-even, if their EBITDAs  are always negative???

Big investments, big losses
As for the young Latin American Amazon clone, Linio, 2017 is set to be a good year – with estimated revenues of €281m, the Samwers claim that the return on sales will be an impressive 12%. This is a clear sign of the Samwers’ huge and rather unrealistic ambitions: by comparison, the company’s US original, Amazon, makes just over 1% in returns.

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