Awardit has pre-announced its Q2 numbers (reports 15 Aug) due to weaker-than-expected performance in the gift card business MBXP. It said it expects sales of ~SEK 248m (+28% y-o-y) -3% vs. ABGSCe of SEK 256m and EBITA of SEK 14m, -50% vs. ABGSCe SEK 28m. Organic growth was 4% (unclear if FX-adjusted) vs. ABGSCe 5% (FX-adjusted). The firm cites lower gift card sales through Coop Denmark (Awardit's biggest retail partner for gift cards) and higher redemption rates on gift cards as the drivers behind weaker EBITA. Coop Denmark has struggled with lower sales and losses recently, and is currently revamping its store concept, which has hurt sales of most goods, not only gift cards. The higher redemption rates mainly relate to B2B experience cards with unusually high redemption rates sold during peak season Q2'22. On the experience gift cards, Awardit realises a 100% profit margin on the sale, while the costs occur when the card is later redeemed.
As most of these B2B gift cards have now been redeemed, the negative effect should be significantly lower in the coming quarters, while the effect of lower sales through Coop Denmark should persist. Lastly, Awardit said the core loyalty business performed well with 5% y-o-y growth and good margins
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