What you should expect from Kinnevik AB’s Q4 result


Kinnevik, one of the largest investor in tech companies has said it will be releasing its fourth quarter and full year 2016 result. The news has been mostly received with mixed feelings.

Kinnevik will be proving to its shareholders that its various holdings in mostly eCommerce stocks are worthwhile. On the tech side of things, the company has various holdings in Konga, GFG (through its investment in Rocket Internet) and a major investment in Saltside technologies (owners of Efritin.com)

The company’s investment in Konga has not been doing well given the economic decline in Nigeria, slowing demand from online shoppers and the drought of Forex in Africa’s largest economy.

Kinnevik also has a major holding in Saltside Technologies. This holding is not doing fantastically well. Last month, Efritin.com, one of Saltside’s classified site operations in Nigeria announced that was shutting down its operations in Nigeria citing high data costs and harsh operating conditions.

Kinnevik AB’s Net Asset Hits USD8,3 Billion

Kinnevik has not also found it funny with its stake in Rocket Internet’s Global Fashion Group. In its 2016 half year result, GFG said it made a net loss of EUR67.6 million. The group has however scamper to raise more funds to shore balance sheet. Over EUR630 million was raised last year through a consortium of Rocket Internet Capital Partners and other investors.

In its Q3 result Kinnevik said its net asset value was SEK 74.5 billion. Its investment in Linio, Home24 has not yielded profits. It will be interesting to see how these companies performed in Q4 2016.

Kinnevik is also having internal issues which it did handle swiftly. Late last year, Kinnevik shocked the markets and the public when it announced that its Chief Executive Officer, Lorenzo Grabau will be “leaving Kinnevik with immediate effect”.

The company announced that Joakim Andersson has been appointed acting CEO. No announcement has been made on the substantive CEO. The company might use the result conference slated for 10th of February, 2017 to announce a new head for the company.