Hello, and welcome to this H1 presentation with Movinn. With us today, we have the CEO and the Head of Finance. First, there will be a presentation, and afterwards, a Q&A, where the management team will answer questions submitted via Stokk.io. There have already been pre-submitted questions on Stokk.io, and the Q&A is still open so that you can submit questions live as well. I will now hand over the mic to Movinn to start the presentation. Your line is now open.
Thank you, Anas. Thank you for the intro, and thank you for hosting another earnings call. We've changed the format a bit this time, so normally it's just me who's doing this, but we have manned up a bit. And going forward, we will have Andreas, who's sitting next to me. He'll be attending the earnings calls, and he'll be weighing in and also doing some presentations. So this is the first one we're doing, and you all know me, I'm the CEO. You all know me. Those of you who've been listening before know who I am. I'm the CEO of Movinn, and Andreas recently joined as Head of Finance and to strengthen the finance team and to strengthen the investor relations efforts particularly as well.
So that's why we are sitting here, the pair of us. And I'm just gonna have Andreas just do a quick intro, and then we can get along with the actual presentation.
Yeah. Thank you, Patrick. My name is Andreas. I started at Movinn in the beginning of August, one month ago, as the Head of Finance. Before I joined Movinn, I worked in the audit and insurance services at PwC, mainly servicing real estate and private equity clients. I've studied at the Copenhagen Business School, a bachelor's degree and a graduate diploma in Management Accounting, and I'm about to finish my master's degree in Accounting and Auditing.
So a clever lad we got there, and with those words, let's get the ball rolling, and yeah, we're wrapping up the half year with some good results, I would say. We wanted to be a bit further on the revenue, but we're still reporting a decent growth. We have a very steep growth in Sweden and a more modest growth in Denmark, but that's coming out of this entire kind of repositioning phase we have been working on for the last three quarters, I would say, so in that sense, we are on the right track.
We have realized an EBITDA on the Danish operations of just shy of DKK 2.5 million, so an improvement from the comparable period last year, and Sweden continues to be on the breakeven mark, which is in line with expectations and positive as well. We have launched one new market in Sweden in Q1, and we also secured a very good project, I would say, in Q2. We haven't put it into operations yet, so that's why we're not reporting any key metrics on it, but we launched the Hotel Twenty Six recently, and secured that deal in Q2 as well.
So besides that, we've been working on a lot of the kind of improving on the basics. So we did a big structural framework agreement with a large OMXC25 client, which was a good milestone. We can also see that the effect of that really kind of building some momentum going into Q3. So we're doing some of the kind of strengthening the existing position. That's the focus area from some time, and we're reporting some results while still building on the growth momentum, especially in Sweden.
Sweden continues to be super high growth, and with the property we signed in Q2, that growth momentum will continue for, like, the next year or so. Yeah, I think we are on the right track and see significant improvement on both, especially on the bottom line metrics compared to last year. And I'm gonna hand over the mic to Andreas for the financial highlights. He's gonna run through those slides, and then I'm gonna jump back in when we pivot towards the more strategic stuff, which is later.
Yeah. Yeah, so we, we've realized revenue in Denmark of DKK 40.4 million and DKK 3.6 million in Sweden, which makes it a total of DKK 44 million on group level, up from 41 in the same period last year, which is a growth rate of 7%. Which is, it's good, and it's resulting in the EBITDA from operations on just shy of DKK 2.5 million on group level, which is a significant growth of 118%, which is obviously good, but although we hoped or expected it to be a little higher-...
But we're on the right track and doing a lot of good stuff, working on a lot of good stuff, so we expect it to be even higher in the second half of the year. On the balance sheet, we ended at a balance sheet total of DKK 50.5 million, down from DKK 57 million in the same period last year. Our equity is down from DKK 24 million to DKK 19 million, and the good thing is that our interest-bearing debt is down from DKK 24.8 million to DKK 21.5 million, which means we are servicing our debt. We are bringing down our debt, which is very positive.
Our cash flow in the first six months of 2024 has been in total negative, but in Q2, on a standalone basis, we've realized positive cash flow from operations and a positive net change in cash flow, which is positive for us because it's a big focus for us in the finance department. Key ratios, we've realized an EBITDA, EBITDA margin of 5.7%, up from 2.8% last year, which is good, although we hoped to have it a little bit higher. An EBITDA margin of -1.4%, which is better than the -5.3% last year, which is trending in the right direction. Cash conversion rate of -21.2% in the first six months.
Again, like in, like the cash flow statement showed, in the Q2, on a standalone basis, we reported a cash conversion rate of 58.7%, which is very good, and it, which shows that we're going in the right direction. Operational data, we started the year with 454 units and ended the first six months with 448. That's a net change of -6, with the seven new units in Sweden. And then we downsized Aarhus, as you know, from the previous presentations, with the 13 apartments. We've realized in the first six months a revenue per unit of DKK 196,000, up from, up 5%, 5.4% compared to last year, which is good.
And then, average vacancy of 14.9% in the first six months. In Q2, standalone, 14.5%, which is something we are working hard to get down. So we've updated our guidance a bit for the full year guidance of 2024. We have updated our group revenue, so we're now in the range of 88.5-93.5 million DKK, which is driven by a higher expected revenue in Sweden. Although we've narrowed our EBITDA guidance, so now it's in the range of 8-10 million DKK because we still have some ramp-up costs in regards to opening Hotel 26 in Väpnaren. And then we've narrowed our EBITDA guidance, so now we're at, in a range of DKK 1.5 million-DKK 4 million .
So all in all, I think we're on the right track. We're trending in the right direction with the focus on, you know, sales efficiency, cost management, and a very high focus on cash conversion and liquidity. And so all in all, it's. We're on the right track.
Thank you for that. I'm gonna do the some of them are not that boring, and some of them are a bit boring maybe, but I'm gonna go through them and to keep the continuity from these presentations. So we address our so we kind of try to keep a red thread throughout quarter to quarter. And one of the slides that we keep commenting on is our product portfolio. And as some of you might remember, we have halted Collective Yoyo, which is a furniture rental kinda side gig of ours. It's a great business model, but it takes a lot of focus and resources from all areas of the organization.
Both on service in the serviced apartment, sales-wise, technology development, and we think that here in the short run, we have lower hanging fruits that is way more profitable to engage in instead of launching new products. We've kind of halted the Collective Yoyo branch for the time being, meaning that we focus on the core business, and we focus on our little sub-brand called Co-Living. Again, if you look at the figures in the table to the bottom right corner, you can see what sort of product group is delivering what sort of revenue. Again, CoLiving is displaying a growth rate 10.5% on that product group alone.
And then we have the core business, which is doing a 7.5% change, and then a negative of 100% on Yoyo, which is very planned and very deliberate. If we jump to the client concentration, also a thing we look at a lot, and report on in a continuous basis, because we are a big B2B provider, because we deliver to big clients with larger needs, we will have some sort of exposure towards client concentration, in the way of how our revenue is kinda piling up.
You can see that I'm not gonna go into every figure, but one of the key points is that we keep seeing the concentration climbing a bit. So right now our largest client is delivering 6.15% of the total revenue, and so we still feel well diversified. Of course, it would be, we won't be happy if we kinda lost that one, but we can see the share climbing up. So as long as we have a good diversification on our client portfolio, we interpret these numbers in two ways, and one of them is that if you look at it industry by industry, some industries are less sensitive to the macro climate.
Some industries are pulling a bigger load, which means that we have a good diversification across industries as well. Meaning that these shares kinda climb is that we also see a good sense of loyalty. You know, we're not losing clients out the back door while trying to get new ones in through the front door. So we keep a stable, kinda loyal portfolio as we go. As long as we're not too exposed on single clients, we are happy that we can see kind of the loyalty staying constant. Technology this has been a big focus this year.
It keeps again, now we're wrapping up H1, so of course, this is a big, an interesting theme in general to touch on again. And it is this automations that we're working on. We're working on a lot of automations, specifically in the sales department. We need to be less reliant on humans and more reliant on automations through technology development. And we're doing this in-house. And it again solves different issues. It's me trying to look into the future and try to figure out how the industry is gonna look in six or 12 months. So we're trying to kinda stay on the forefront of that with the technology we do.
But it's also to improve on stuff happening here and now. So what we've done is that we've really have a strong focus on our sales capability tech-wise and looking at what the system. Again, we've built the entire system. We've built our entire infrastructure. We've built our own access system. We've built our own PMS system from the bottom. What it was extremely good at in the old days, let's call it that, is, was this kind of very smooth user experience from when the clients had walked in the door and made a sales decision.
So when you do a booking, or a be that six months or two months or whatever, everything is extremely streamlined in that sense. So the information you need, you're getting that. You can get your access code, you can access your unit everywhere in the country, remotely, you know, without having a human involved. So we kinda, we've always been kind of good at that, but coming out of last year when we had these internal, you know, challenges in our sales section, we needed to build some robots who could kind of help us in that scenario as well.
So what we did, we did the instant online direct booking and the dynamic pricing, we did the AI assistant, we did some of that stuff. And you can say that, "Why didn't you have that before?" And I challenge you all because yes, if you book a hotel, you're used to doing that, and if you're booking a rental car, you're used to doing that, even though when you get to go and pick up your rental car, it's a massive hassle. But you know, I challenge you to go out and find a piece of technology that can actually do this in as efficient and as kind of broad as ours can do.
You know, if you look at the big booking sites, Airbnb, you will still be kinda halted, and you might not even get allowed to book what something there, and that's only for a very short stay thing. With this, we've employed a totally digital order flow. You validate your ID, you sign whatever you need to sign, if needed, and you just force it through, and when you then get your booking confirmation, you have your access stuff, and we can check your payments, and, you know, so it is kinda neat to be fair, and we are doing this in-house. So it is great, and it is pretty advanced what we're doing.
Step two was to integrate across different kind of more channels that is out there to get more visibility. We could see that some clients that we would really like to kinda have with us, they don't find you, you know, movinn.com, it's a strong domain, all that, but, you know, there are other sites that are that probably spend a bit more money on SEO and AdWords and stuff like that. So the second step was to do this integration, so our system could automatically kind of push our availability across different portals out there as well. Of course, you're paying for that traffic, but the traffic is highly qualified because it is like, yeah, you're getting...
It is instant revenue you're getting in by doing that. Another great thing to get on the out of the roadmap. The last one is our little invite-only booking platform, which is basically similar to what our normal website can do, but the order flow is changed so it matches the needs of if there's third-party agents involved, or if there's a travel manager somewhere who needs to manage more than one assignee or more than one move, they can do that through the platform. There is a lot of other stuff you can do as well. Another trick with that platform is that you can guide supply differently.
So if you have really good, kind of, pretty household name clients that you wanna keep happy, you can then guide the supply. So we can take some of the supply offline, and then we can put some of it on the platform, and then we can always deliver and be more, kind of, a better kind of supplier to these very big strategic clients that we want to be a better supplier towards. It was expected to launch earlier. It then kind of dawned on us that we probably needed to take the security extremely serious. So we had to build a lot of new databases. It's not gonna...
If it launches mid-September, which is now the new kind of deadline, it has no kind of pivotal effect. It's only gonna make us, like, stronger in the long run towards these structure clients that book with us very often. And we're showing them that we take this extremely serious by giving them this whole tool. It again, it'll totally disconnect the relationship between your sales capability, your sales velocity. The platform is named Velocity for that reason. You can have third-party kind of stakeholders and clients who can just sit and do this in their own time, so they don't need to wait for us to be in the office or have to wait for, you know, the, the...
It's gonna up the efficiency tremendously, you know, to if you all the business we do B2B. So Twenty Six, another big one. It's not a huge property in that sense, but it is a great deal we did, and it was a great opportunity that landed with us. Just to explain, to do a bit of a deep dive into that sort of deal, we did this in partnership with a landlord of ours, which is someone I've known for a couple of years only. It is kind of building the relationships needed to put yourself in a position to get these opportunities presented to you. Him and I was discussing some different options.
He's a local, really good real estate, and, like, cap fund guy, and so he knows what's going on, and the fact that he's kinda wants to take the punt on us, I think it's a very good, it's a very good kind of signal to anybody, that we are able to do this. And if you then look deep in that case alone, it is a top-quality property in all corners of it. The quality of the FF&E, even though we do our own FF&E, and we think we are pretty good, we are not doing bits that costs like 150 K, which those Duxiana beds will set you back if you ever think about getting one of those.
We've gotten an asset here that is extremely exclusive and extremely upscale, and because the deal included the FF&E, our investment need is very limited. Those of you that has been listening for a lot of quarters will also remember that we are disconnecting the relationship between our growth and our investments by doing these sorts of deals. And now it's the second one we're doing. The Amager one is very similar to this one if you think about the need for investment and how you put together a guarantee structure. The potential in... And again, you know, I wish I'd known this years ago. I've known it for, let's say, a couple, well, two years maybe, or eighteen months.
It kind of dawned on me that this was possible, and now we're getting these sorts of deals out there into the market, and again, if our investment need is close to zero, and we are adding SEK 8.5 in revenue, you know, and two of those is expected to drop onto the bottom line, then it's a pretty good deal if you ask me, so of course, now we need to operate and also get the assumptions behind the project out into the real world. We just launched the property here in May, and before that, we obviously also had the books open, so people could book it, and we can see some. We have some. It's an exciting prospect.
We can see a lot of interest in the property, and we can see that people are willing to pay some kind of interesting rates for it as well, due to the fact that it is so upscale and pretty. So of course, this is a deal that has to be kind of highlighted. The reason why we branded it separately is because, first of all, the quality is ridiculously high here. Our quality is also good, but we are not Duxiana bed good. So we needed to tweak the brand a bit in our opinion, away from the classic movin.com brand.
It'll also allow us to maybe morph movinn.com more into like a platform or a sourcing platform, that the Velocity one I just spoke about that will go out shortly. The clients are drinking from the same well, and they don't care if it's called twenty-six or movinn.com. So it's a way for us to get different supply in. You could technically also imagine having a budget, like a budget brand. And as long as all the platforms where the clients are kind of picking from is from the same well, then we don't mind it, whatever it's called. So it's a very deliberate strategy as well to kind of tweak these very thematic properties in different directions.
So, it'll get its own universe and its own booking portal, its own, yeah, its own brand line. It has its own like everything is umbrellas with, like, twenty-six logos and stuff like that to really go deep in the branding on it, and then it's all linked up to the same sourcing platforms in the end, so we think that's a clever approach. We could also, it also gives us some flexibility in different markets. The reason why it's called twenty-six is because the original owner of the hotel has a very, very kind of long relationship with Malmö.
It's also honoring the local history a bit and not just coming in, you know, Danish guys wanting to do a lot of stuff in the Swedish market, you know, for good or bad. So yeah, so this is so we're gonna hopefully we can do some more of these and because they have so much potential. If you look at it from an investment metric angle, and as Andreas just mentioned briefly in his run-through, there is this kind of ramp-up of costs, and before you get it fully out there into the market, before you get the vacancy rates or the occupancy rates, depending on how you want to call it, up there or down there, there is quite a bit of a lead time into that.
But we can see what the clients are willing to kind of pay both the business to business clients and the private ones. We have kind of high hopes for that. Current markets, it's this. Bispe was added in Q1. Bispe, it's a small launch we know. Trust me, we know. You can see that the pipeline in Malmö has been added with the hotel in twenty-six we just touched on. We have a strong pipeline in Copenhagen as well. That's the Amager hotel, which is also kind of on its way. And then Ludvika, we have an opportunity to kind of in the longer run to up our presence in Ludvika. We also have some talks in that market.
I've mentioned this before, but the reason why we do these small, like needle stick operations into these locations is that because there is some structural importance to them. It is some very good industries, countercyclical industries that are present there. It is some very kind of key clients. If you want to be a relevant supplier in the Nordics, if you can deliver on these markets, then you'll be, you know, you'll get a Christmas card from them instead of just being tolerated. So it has a lot of commercial importance even though it doesn't look that impressive to add, you know, that low unit number into these markets. But it gives us access to strategically important clients, and we can use that across the rest of the markets we do.
The structural agreement we did with the Danish company, they have a presence in most of our current markets, which is also why they even, you know, wanted to thought that our proposition was interesting. If you can only deliver in one market, you're not that interesting to, to a big company that has a multi kind of country, multi-city presence. So you kind of need to do this, and that's the reason why we're doing it. Of course, we wouldn't mind going deeper and broader, like we do on the target markets count. Of course, I would love to be in, you know, some of these key cities in Northern Europe. And we still have a very kind of strict ambition to do that, and our target markets are not changing.
We have these ones in the focus. There's been, like, different reasons why we couldn't do it sooner. The German economy has been a bit kind of challenged since the Ukraine war commenced. Inflation levels, energy prices, that sort of thing, which has halted a lot of development there. But again, we stay kind of opportunistic. We don't want to be opportunistic on markets we haven't re-identified as strong markets, but we stay opportunistic on these markets. And if you then take that into the roadmap, we touched on this earlier as well, where we said that maybe we would be looking into, instead of just having a strict going alone strategy into every location...
We would probably leverage our ability, current ability to kind of stay relevant with extremely good clients and then, alongside them, have them identify kind of places that they want, and with that, we could then partner up with some local providers. We could provide our strengths, and they could provide their local strengths and with that, we could achieve the same, but with a different risk profile and with a different kind of, again, different investment needs, different lot of things, we stay committed to the long-term plan.
To be totally kind of honest, our portfolio growth, if you did the math on that, we would probably have to be on 600 units in Denmark going into 2025. Are we gonna make that? Maybe. With the new markets, we would also have to have a couple of hundred units. Are we gonna achieve that? Maybe. So there is uncertainty to it, but with the current kind of focus we have right now, we believe we can get there, and again, looking at the unit metrics, we've been over them, but it is a . . . You know, we guide a range, long-term value driver guidance on a range of revenue. We're delivering on that.
If we have to be hard on ourselves, we it's not kind of cleansed for inflation. So even though we are delivering DKK 196,000 per unit, if you take inflation out of that, that would technically be a bit lower. So we still have potential to improve our revenue per unit for sure, even though we are in the mid guidance of the range, and that's kind of why. So yeah, there's more to be done. The operational vacancy, we want to keep that below 10%. The EBITDA margins, we have to get that above 15%, like, on a continuous basis. We know we can do that. We did that in the year earlier, before we really put full throttle on growth.
We were reporting on 15-plus EBITDA margins, and we were also reporting on 18-plus return on equity margins, as I recall it, and maybe a bit lower, but. So we know it can be done, so we have to find that balance and get back to that balance. One of the means to do it is to grow in chunks and not like extremely disfocused. And you have to do a chunk, kind of like Hotel 26. You have to do a chunk, kind of like Amager, in my opinion. And then you can always figure out how much, how aggressive you wanna be on that, but that's the way to do that.
You can do different sorts of negotiations when you do those chunks, and you can better plan your resources for that. So you know, you know, "Okay, it'll come at this point. We'll need this amount of people to run it. We'll need this amount of. We need to order this amount of furniture from the factories," et cetera, et cetera. So it's way more efficient. So in my opinion, we need to get that back in the right brackets. That's part of the answer, while maintaining a high growth rate. And again, if you can partner up with local providers, you can offer your strengths. You can then add a bit to it without having the investment or the operating kind of risk.
And if you then track our progress, we report this, you know, when it's green or when it's red or when it's yellow, and it remains kind of a mixed image. The unit growth is a total kind of deliberate consequence of our growth strategy and our revised growth strategy. Revenue per unit is in the bracket, so it's green. The soft launch in Vesterbro is a new market, so it's green. The vacancy remains too high, and that then has a direct effect on the bottom line metrics. So vacancy is an important value driver to keep those margins looking right. And the main reason for that is two things.
Going into the year, we were struggling a bit in Aarhus and Odense in Denmark. Copenhagen is stable. It is still stable. We've kind of solved Aarhus now, by, like, old-fashioned sales work, and but we still have Odense, who's trailing behind. So Odense is like almost the only thing that I'm focusing on at the moment because I know that structurally, we've kind of gotten the rest of it right. So now we know we need to get Odense back on its previous strengths. For those of you, you know, even before we were listed, back when COVID-19 had an impact on our business model, Odense was just a tractor.
It was completely rented out long-term, long-term clients working on projects in the city, no need to go home or leave or anything like that. So Odense was actually a very stabilizing factor back then. The downside was that the clients is then within having a big, too big of a chunk of your portfolio, which is also why I'm so obsessed with the client concentration. And these projects, they have an end time, so at some point, they stop, and you need to be extremely vigilant to get, you know, your client portfolio timed well, so you can replace one big client leaving you with another. That being said, we know that Odense is cooking. We expected it to be cooking now.
It is still not totally cooking, so it remains too volatile for our taste. But there's no doubt in the long-term potential in Odense, which is driven by three very big kind of trends coming. We have both the tech sector doing a lot of stuff there, like the international tech sector. We then have some pharmaceutical stuff in the pipeline coming, and then we have renewable energy and defense technology coming out of the harbor. So three very big kind of countercyclical stuff. The timing is just not been kind of totally as expected, but we have those things kind of cooking and coming. So we remain and we have high hopes for Odense and remain committed to Odense.
So, so that's our focus area at the moment. A disclaimer, because there's some forward-looking things in this presentation, so the standard disclaimer here. And then, thank you for your time. Happy to take some questions and do the Q&A. And, I will decide whether it's me or Andreas. I don't know. I don't think people expect Andreas to sit here, so let's see. Yeah, it was you.
Thank you, Andreas and Patrick. Let's take the first question, and then you can decide which one of you can best answer that one. So the first question is: The vacancy rate in Denmark still seems high in H1. Can you explain that and what you're doing to decrease it in H2?
Yes. A lot of the things we kind of put in motion, both the tech stuff, but also the old-fashioned stuff. And when I say tech stuff, it's of course what I'm super keen on that, but you have to combine it with the old-fashioned stuff as well. So going out and talking to kind of big and relevant client that you think have a need and looking into that. And there's always. For first of all, it takes a lot of time to get the old-fashioned stuff done.
I was at another B2B meeting the other day where I complained that at the end, it took me nine months to get kind of from when I started the chat to when we had kind of the first sale, so to say. Maybe not nine months, maybe it was eight or seven. And then the guy I had a meeting with, he said, "It normally takes me a year," you know? So B2B sales, when you get it right, it's very constant and flowing and coming in, but it'll take you a long time to kind of scratch your way in there.
So that momentum is kind of had to build and even though we got the signature down and reported the signature, I can't remember the date now, but even though even after that point, I'm sitting here in a forty-five person company, you know, and just "Let's rock it!" You know, and "When can we rock it?" And when we wanna do stuff, we take a decision, and we run with it. And that's not how it works when you are kind of now playing with the big lads who have maybe fifty thousand employees. So it takes time to build the momentum. And some of the automations is kind of the same. It's not changing overnight, but you're kind of building the momentum.
You can see that you're now if you look at the unit economics you have to kind of monitor that, and you can see that's going in the right way. And then you can also say that vacancy. One thing is vacancy, the next thing is prices. If we can get more prices for the products, you know, we can also tolerate a higher vacancy rate. So it's the combination of the two. So that's also kind of why we, you know, I would say most of the vacancy in Denmark comes out of Aarhus and Odense. Odense is still too high, but Aarhus is kind of looking good now. And so that's kind of the...
So now we're looking at it market by market, and the market is driven by different demand drivers, and so you just have to kind of get that right. Yeah.
What have you done to lower listing costs by 24%?
Oh, we've made a lot of nasty decisions. We have kicked a lot of fluff, you can call it. I don't wanna... Nope, I didn't say that! No, you know, you have too many, you maybe, you might have too much. You know, when you do, first of all, when you kind of go launch this and you think you need all sorts of stuff because you don't want to disappoint your shareholders and be blamed that you do too little, but after some, a while, you kind of figure out, okay, is this a nice to have or a need to have thing?
So we have, we've kind of, you know, some analysts we had on the roster. Did it have a real effect on us? And we kind of. Then we talked to the big shareholders and asked them what you think, and they say, "No, no, no, take them, take it down, you know, just take down the cost and get it out of there," which makes it an easy decision. We have small things like changing our, you know, IR platform, you know, taking the licensing costs down, in that sense. Spending less money on like different advisors related to being listed, whatever service they might offer. That's the main reason. We've also changed...
That was a tough call, and that hurt my heart, but you know, my brain was more in it there. We also changed our certified advisor not too long ago. The effect of that has not kicked in yet, but we have taken our cost down on that as well. Super tough call because you grow close to these persons, and when they take you, you know, when we do a big thing like an IPO together, of course, you feel loyal in that sort of sense. But we've also changed that, and so we're gonna take the cost down even further going forward. Yeah.
Can you explain why EBITDA has increased by so much when revenue has only increased by 7%?
It's... we also- yeah, you can, you can say that, you know, we have- we have fewer, we have fewer, we get, you know, the, the- if you, when you, the, the units in Aarhus, you know, getting rid of them, in the begin, right now, we kind of need them. So that's, like, the entire dilemma, the constant dilemma we... But, you know, we made a call to take, to take them down. So that is, of course, having an effect. Then we are taking on other costs to kind of get the, the, to kind of generate the, the revenues, that we wanna do. But it is, it's been a cost kind of cutting exercise.
We've also had to let go of some people on the payroll because, you know, we kind of positioned ourselves last year. We thought that, "Okay, we've done super steep growth in 2022. 2023 is gonna be more of a consolidating year." We had that pipeline stuff we were building, and we kind of knew that, you know, okay, we could, we'll manage to get one of these projects in the pipeline, so we still have the pipeline potential. And then we were just hit by different things internally and externally, of course, as well, so we had to get rid of some people. And then again, you know, getting a better price for your product.
So you can see that the revenue per unit is higher than it was in the comparable period last year, and that's some of that dynamic pricing and that. So even though our revenue or our vacancy is higher than we want it to be, we're getting a better kind of bang for the buck on every, like, single rental we do. And that dynamic thing we built both online, but also, we also have a quote system that works on the same, the same dynamic, you know, so we can get a better rate for our product, you know? So that's I would say that's mainly the case, mainly the reason why. Yeah.
How do you explain the big difference in cash conversion? What is the reason, and is there a seasonality in Q2?
Good question. Really good question. It's the working capital mainly. So our, of course, our EBIT was stronger in Q2 as well, but it's also working on the working capital actively and more actively. And we've been doing that a lot and kind of one of the reasons why we were like, "Okay, we need to improve our, or to man up in that section and bring in Andreas," who is like a certified accountant almost, is to keep doing that. So you know, it's a... If you look at your working capital, you have tie-ups in your inventory. You have debts. And again, working with big companies, just google it, there is payment days, that's a thing.
So how you manage that is an ongoing thing. And then, of course, you'd have to do deals where you bite the bullet and give them some payment days, but then you have to be extremely active on the ones that don't have the same payment days and make sure that they get you kind of, that you get your money when needed. And so that's been improved a lot in Q2, and if it's not at the same level next month or the next quarter, we blame Andreas.
Perfect. When do you expect the hotel in Malmö to be fully operational?
We launched it on Monday, so yeah, yesterday it was opened. We opened the doors. And we can see the book is building nicely. So it's exciting. It's... I don't know. We're going into... Speaking of seasonality, that was why it was a great, a good, also a good question. Of course, a month like November is not fantastic, when you're doing like short-stay, high-end hotels. And but December is kind of good. So it's... We can see that September has actually been, is actually building up quite nicely. We can see that October is building up quite nicely.
We then expected a dip in November and then a strong kind of finish in December because of all the Christmas travel and that sort of stuff. So that's, like, the automated, kind of normal seasonality. If you're lazy, that's what you're gonna get. And then in parallel, we of course also, and that's also why we use the term rainbow period, we need to go out and speak to all the kind of regulars that used to be there, especially the B2B clients. We have a lot already, but we have. There's more that we need, so we need people to know that we're back, it's back, open, and it's actually there and a thing again.
It had a very good reputation when it was open in the old days, so we are kind of piggybacking a bit on that reputation to get some of those old business-to-business clients, like law firms and cap fund to the people and big accountants who might have some VIPs coming in from you know the US or whatever, and who's not price sensitive, who just wants it to be super fucking cool and high-end. And that's what you can do when you have a high-end product. And then luckily, it's not a huge place, you know, so it's not that easy to kind of get the book looking right.
It was a different thing if you were launching 500 units. Then it would be, you know, you would probably be a bit more anxious. But it is a smaller, boutique, high-end style place, so I expect within a month or so, we'll be close to be able to report some kind of decent metrics on it.
Yeah. The setup you have done in Malmö, do you expect to copy this in other locations?
If the question relates to the branding stuff, then, for sure. For sure. It gives us, again, I touched on it when I went deep into that case. It gives you so much flexibility. And when you talk to landlords, for example, there's a lot of opportunities, and... But when you talk to them, you can kind of play a bit on their vanity as well, when you, if you have, like, a very high-end thing, like the twenty six one, we can tweak it a bit. So if we look at Movinn across the entire portfolio, and if we are being a bit self-critical, are we a three-and-a-half star thing, maybe, out of five?
It's not overly luxurious. So when you have these, so if there's an opportunity staring in your face on a top-level location with a super beautiful old building you can transform into our purpose, then you can take it in one direction. You can go a bit classic. If you then have a new build development somewhere, where. And that's what's gonna happen in, you know, in Amager. It's gonna be first of all, there's gonna be a spa there, and we're gonna go concrete and oak wood and a lot of glass and that sort of thing. So do you want, you know, so do you want one brand to kind of fits all? You probably don't. And if you look at the travelers, they like those kind of, you know.
That's the trend I see anywhere. A lot of our competitors are going very deep on the chain thing, so they have, like, the same name across every location. And when I look at the trends from the travelers or from the clients who's actually gonna pay the bill, in the end, they like the thing where it's, like, sub-branded or they like the storytelling that you can put behind that model. So we're definitely gonna copy that, going forward. But not just, but movin.com is a super strong domain, don't get me wrong, and it's a super good brand, and people who know us, they know us for good stuff. We get good feedback. We have a good kind of reputation management, that sort of thing.
It's not like we're gonna throw that out the window, not at all, but we're probably gonna pivot that a bit towards being more of a platform. Then, yes, there can be the 26 Aparthotel on there. Yes, we can have our own supply, of course, on there. With the clients drinking, as I like that expression, so I'm copying myself. With the clients, they're drinking from the same well, I don't care, you know, as long as they drink from my well, you know, that's kind of it. Yeah, we're gonna do that. That's probably gonna happen again.
Yeah. And then we are at the last question here, but it's a bit of a longer question, so I will read it to its fullest, and then you can explain what you want to explain after that. "Can you explain how the aparthotel fits into your strategy? Are you becoming a hotel operator when moving in this direction instead of a serviced apartment company? And is the daily management of the aparthotel the exact same operation as your serviced apartment, or what are the differences?
Super good question. It is by far. If you wanna go abroad with this, it's way easier to copy from country to country if you go aparthotel style. You can do, you can almost. And then you have the flexibility as well to kind of to also play with the season, which is something that is tricky to do otherwise. So if you so you know, when you have your business to business, which is the service department thing, your business to business clientele, who's working under one seasonality pattern, and then the seasonality, and then the demand in the summertime is completely dead because everybody is home for Christmas or holidays. And the same with the people companies bringing in all these people.
They're also away, so you're not bringing people in. So why not have a stronger kind of product that is more appealing to tourists in, like, the summertime? It doesn't really. In that sense, there's a strategic thing about it. So it's, and it's easier to copy from market to market. In Germany, you can't do serviced apartments. You can't do a rental in less than three months. Otherwise, you are kind of, you know, you're kind of. It's not. It's impossible. It's illegal. So it's an easier. So it's also an easier thing to copy from market to market.
On the operational side, it is higher rates and so higher revenue per unit, but the cost base is also a bit higher, so the service level is a bit higher. But, in all humility and modesty, when we've gone through so much tech development and, you know, we have the electronic access system, so we don't need someone to be there 24 hours a day. People can just enter in their own time. Big plus. The Hotel 26 is operating currently with one full-time employee and then some cleaners.
So in that sense, you know, the lift or the leverage potential is extremely high if you can kind of get the technology right, and if you are good at managing expectations on what people are getting, because then you can have them coming in their own time, they can access with a code. And then, of course, you need to clean. But the relationship between what it costs to clean for one hour and what you get for doing a very good daily rate, that's. There's a big kind of leverage effect on that. So in that sense, we're not becoming a hotel operator. It's kind of the same.
It's just a bit more kind of conceptual and it allows you to do those chunky growth things. You can't get an empty residential property somewhere where you just can do whatever you want. It can be done. So it's more like, okay, it's more normal that you have a residential developer who is doing 100 units, and then he wants you to take 10 of them or 15 just to get his thing going. And then you're in a property with kind of mixed tenancies, different kind of interests, you know, trickier to operate because you have less units in multi-locations.
So I expect the operations and the metrics on even a small hotel like the 26 one to be stronger than what we're used to. And hopefully we can report that shortly. And when we have kind of managed to do so, then it's gonna be a no-brainer to copy and paste that model going forward, especially if we don't have any significant investments in there.
Perfect, and that was actually all the questions, so that finalizes the Q&A, but before we end the webcast, I will just hand over the word for you, if you have any final remarks to end with.
No, thank you for your time. I think this is the best format ever, and happy to have Andreas with me. He's gonna be with me, going forward. And maybe we'll also be doing some special things, you know, when we feel the need to do a deeper one on a theme we're doing, which is not yapping through these, like, 20 slides or whatever. The idea is to go a bit deeper in some elements of it, so that people can get a better understanding for what we're doing. Because we are working hard, and we're not, you know, we're not just sitting on our, on the... yeah, with the feet up on the desk.
So we're probably gonna do some more of these.
Yeah, sure.
Stay tuned, and thank you for listening.
Thank you.