Brazil’s Time for Fun is slimming down its board as part of a wider programme of cutbacks in response to the Covid-19 pandemic
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Like Live Nation, Time 4 Fun’s turnover declined 98% in Q2 – but the South American market leader says its "cash maintenance" plan puts it on a solid footing
By IQ on 17 Aug 2020
Time for Fun (T4F), South America’s largest live entertainment company, saw its turnover decline by 98% in the second quarter of 2020, its latest earnings release reveals.
Brazil-based T4F, which trades on Sao Paulo’s B3 stock exchange, reported revenue of R$2.6 million (US$475,425) in Q2 2020 – down from R$132.4m (US$24.2m) in the same period in 2019. For the half-year ending 31 June 2020, the figure is R$35.1m (US$6.4m), a decrease on 86% on H1 2019’s R$253m (US$46.2m).
In losing 98% of its revenue in Q2 2020, T4F is in good company: US-based Live Nation, the world’s biggest live entertainment firm, experienced the same decline in the same period.
Profit figures were even more bleak, with earnings before interest, taxes, depreciation and amortisation (ebitda) falling 585.5%, leaving T4F with a Q2 loss of R$15.5m (-US$2.8m).
Cost-cutting measures have delivered a 36% reduction in expenses
However, the company – which promotes concerts, festivals and theatrical shows, and sells tickets as Tickets 4 Fun – can take comfort in the fact that 50 events, worth 327,000 tickets, have been rescheduled for when large-scale shows are allowed again, while previously announced cost-cutting measures have delivered a 36% reduction in expenses compared to 2019.
This “cash maintenance” plan, it says, means the group has lost a comparatively low R$4.6m (R$1.7m net) compared to Q1 2020.
Its cash reserves as of the end of June were $217.9m ($39.8m) gross and $57.2m ($10.4m) net.
The full Q2 2020 financial report is available from the Time 4 Fun website.
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