T4F Entretenimento SA

BOVESPA:SHOW3

Earnings Call Transcript

[Francesca Alterio, executive]

Dear shareholders, customers and partners, as is characteristic of our industry, the first quarter tends to have a more modest impact on annual performance, reflecting a seasonality that is both expected and historically observed. That being said, we kicked off the season at Teatro Renault, with the Musical Wicked, which had strong presales and has been enjoying great public success, leading to an extended run. We also premiered Clara Nunes at the same venue.

At the same time, we continue to expand our client portfolio and further consolidate our ticketing operation as a key growth driver for the company. We opened ticket sales for the Play Minha Vida em Marte, and for the Band Bush. We hosted two [ sold out ] shows by Incubus as part of their 23rd anniversary tour of the Morning View album in Sao Paulo and in Curitiba. We also produced a Bush Concert with each show delivering unique and memorable experiences for the audience. In the festival segment, we have important highlights ahead.

Festival Tura Sao Paulo takes place at the end of June and will feature icons of Brazilian music, such as SPC, Seu Jorge, Gloria Groove and Raca Negra, amongst others. Later this month, Popload Festival will be held at Parque Ibirapuera with performances by Norah Jones, St. Vincent and other major international acts. In addition to the confirmed calendar, we are also exploring new avenues for content and event production, always committed to innovation and delivering relevant experiences to our audience.

We thank you for your trust and partnership. We move forward together connecting people through music, culture and live entertainment. Let's now explain the financial variations. Net revenue in the first quarter of '25 totaled BRL 23 million, a 34% decrease compared to the BRL 34.6 million recorded in the first quarter of 2024. This result was mainly impacted by the fact that our owned events calendar only began in April.

On Slide 6, we report gross profit of BRL 4 million in the first quarter of '25 with a gross margin of 17.4%, representing an increase of 19.8 percentage points over the first quarter in '24. This improvement was primarily driven by our operations in Argentina, which include the naming rights to Teatro Opera, venue rental and ticketing service. Also on this slide, SG&A totaled BRL 9.8 million in '25, a 2% improvement compared to the previous year, reflecting the company's ongoing commitment to cost efficiency.

Moving on to Slide 7. EBITDA was negative BRL 3.4 million in the first quarter of '25 compared to a breakeven in the same quarter of '24. Slide 8 presents the net financial results of the quarter, which was negative and BRL 4.8 million in '25 versus a positive BRL 0.5 million in '24. The main impact came from losses related to hyperinflation in Argentina, a noncash item with purely accounting effects. Slide 9 shows the net loss in the first quarter of '25 of BRL 11.9 million compared to a loss of BRL 3.3 million in the first quarter of '24.

Excluding the nonrecurring effect of a BRL 10 million reversal of tax, civil and labor provisions recorded in the first quarter of '24, the comparison becomes more balanced. Regarding the company's cash position, as shown on Slide 10, we ended the first quarter of '25 with gross cash of BRL 96.6 million and a total debt of BRL 69 million, resulting in net cash of BRL 27.5 million. For comparison, gross cash was BRL 96.2 million in the first quarter of '24 and BRL 114 million in the last quarter of '24.

On Slide 11, we detail the cash flow. The main effects were: one, operating cash flow was negative in BRL 13.9 million in the first quarter of '25 versus BRL 47.6 million in the first quarter of '24. an improvement of BRL 33.7 million. Cash flow from financing activities was negative in BRL 8.9 million in the first quarter of '25 due to the payment of the principal and accumulated interest of our loan contracted in '24. Total debt reached BRL 69 million, stable compared to the BRL 56.6 million in the first quarter of '24, reflecting disciplined cash management.

Looking ahead at our pipeline, confirmed indoor shows include Popload Gig with The Lemon Twigs in May and Popload Gig with Kim Gordon in June, both at Cine Joia in Sao Paulo. In addition, other events include Jorja Smith at Espaco Unimed in October and Polo & Pan at Audio Club in November. And the Rose with their once upon a time World Tour in August, with sold-out tickets. In the Family and Theater segment, Wicked continues its extended season at Teatro Renault, also confirmed as a new season of Minha Vida em Marte, starring Monica Martelli beginning in August.

In the festival segment, Popload Festival is confirmed at Parque Ibirapuera and Festival Turas Sao Paulo is set for the 28th and 29th of June. We thank you for your continued trust and support. Let's keep moving forward, uniting people through music, culture and live entertainment. Thank you very much for your attention, and I wish you all a great Thursday.