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The StartArt EBIT targets (to trigger the additional consideration) are started in the RNS in black and white.
All indications are that Formula E will be officially confirmed shortly. They get a 10% cut of sponsorship revenue.
£1m extra for StartArt and maybe the same for Formula E based on what has been said about sponsorship commission on the webinars. Plus any profits form the efest.
So that’s £2m profit for next year before the addition of the extra Kpop events.
That’s a good point on further reductions in the BrickLive cost base.
They’ve now finished the phase of building the touring sets that they’ve done over the past few year so little need for many staff now. They just need to rent out the large number of sets they have.
43% further reduction in staff numbers and consolidation of storage facilities.
The segmental analysis shows £841k of admin expenses for Bricklive for the 6 months.
The further reductions could therefore save £350k per 6 months.
The EBITDA loss was only £600k. So that would bring it down to £250k.
With the StartArt fairs and the O2 concert it looks likely that the company will be profitable in the second half.
They are on the cusp of profitability now. H2 should be cash flow positive.
£458k gross profit vs (£542k) loss last year.
EBITDA loss of (£597k) down from (£1,349k) last year.
And only a £467k cash outflow
In the second half they have StartArt with 2 fairs and a forecast £488k EBIT. They also have the additional Kpop concert at the O2. They also have the Bricklive live shows starting in H2 (brickliveinthepark etc).
That concert is less than two months away so that extra cash from the profit can be used for future concerts too.
In future events they hope to recharge even more costs.
With the addition of sponsorship and proper streaming must be looking at over £0.5m profit for the November concert.
The partners are supplying the funds for Kpop expansion. £300k already incoming in Korea.
Actually £220k profit from Frankfurt. £80k profit share and £137k recharges.
Looks very good on the Kpop front.
*£300k profit in total from Frankfurt Kpop. A very decent first outing and will grow a lot with future concerts.
*20 Nov 2022 02 k-pop concert announced.
*Establishment of local Company to fund k-pop growth, with some monies being received from the partner:
‘I am pleased to confirm the establishment of K.FLEX in Seoul in partnership with Jason LEE our partner in the highly successful StART Art Fair Seoul. This new partnership will involve the payment of £300,000 to LVCG as the start of a continued investment in our K.FLEX business.This will be in the form of a cash subscription and annual licence fee payment details of which will be announced in due course.’
This last part is great news.
The point is we just don’t know how much relates to the current year.
They could have received orders relating to multiple years, to tie in prices etc.
Need further clarity on how much of the 153k tonnes they expect to process and invoice in the current year.
Why have they only had 35k tonnes of sales in H1 when the 30 June RNS stated they had sales of 117k tonnes in H1??
Spoken to DC recently Tintin?
US dollar has strengthened about 20% against Sterling over the last year.
Very good for the Bricklive tours in the US.
US companies normally like to have contracts in US dollars. That means LVCG is getting
20% more Sterling income on the tours than they did a year ago.
Tumbling £ is a big positive for the company.
Their cost base is largely in £ but they have income from events worldwide is other currencies (which will now be worth more when exchanged back in £).
As you say the Frankfurt festival was profitable even without streaming profit and without sponsorship.
How much do you think each show will make with those things.
How much profit will formula E and StarArt also add in 2023.
So far we have Frankfurt 2 day festival 17-18th June 2023, and London-O2 3 day festival 22-24th Sep 2023.
Frankfurt tickets are on sale. I’d book early if you want good seats. Over €1m of tickets were already sold by the end of June.
With 4-8 Kpop festivals I think next year’s profits could easily be in excess of £2.5m.
Tintin,
Why do you think there will be news on 20th?
Production was lower in Q2 than Q1.
They also had cash outflow on operations of $200k. And a cash outflow of $3.5m after investments.