2025-03-28
Lars Rambe, CEO of Hoi Publishing, talks about the company's focus on film and television production, the potential of the acquisition of Eleven Stories and the launch of the new publishing imprint Lyrikhuset. The company has identified four film projects that have a good chance of reaching full financing during the year, which would make a clear contribution to both sales and profits as early as 2025.
"Most things point to positive cash flow already in Q2 2025"
After acquiring a majority stake in the production company Eleven Stories, Hoi Publishing AB (publ) is taking a big step into the world of film and TV. With established creators, ambitious production plans and international financing behind them, the company now hopes to create a new media vertical with significant earning potential. Here, Lars Rambe, CEO of Hoi, talks about the path forward, the dynamics of film valuation and why 2025 could be a breakthrough year – for both the company and its shareholders.
1. You acquired a majority stake in Eleven Stories in the fall, which created a completely new media vertical within Hoi. What makes you see such great potential in Eleven Stories in particular?
Although Elev Stories itself is young, the creators behind it, Håkan Bjerking and Daniel Fridell, are well-established. They have built up a catalogue of rights with a number of productions that have already come a long way towards full financing. The financing work is international from the start, which creates significantly better conditions for success.
The pace of development in the most current productions has exceeded our expectations, where we see that the probability is very high that we will soon be in production on one or even two films. When fully funded, Hoi enters a new stage - with completely different finances and the potential for significant royalty income and profit payments going forward.
2. What milestones do you hope to achieve with Eleven Stories in 2025?
Just as the board stated in its guidance in January, we have identified four productions that have good prospects of reaching full financing this year. It is likely that one of the productions will be enough for us to see an increase in turnover that exceeds the 30 MSEK that the guidance points to. So full financing of preferably two productions during the year and at least one is what we are aiming for. This also probably means production starts in the fall of 2025 and a premiere in 2026.
With the musical My Name is Fleming, Ian Fleming, the plan is to premiere already this fall. We also hope to sell some other rights from the portfolio, which could be a significant source of income in itself.
3. How can an investor calculate the value of a film production? What is the dynamic between revenue and costs?
The important thing when investing in shares in Hoi is to understand that even fully financing a production means a big positive difference in turnover and results. Likewise, a fully produced film will generate money for Eleven Stories – and thus for Hoi – for several years afterwards without any associated costs to speak of. As a production company, you have a certain net income on a launched film regardless of how well the film is received.
Larger productions tend to have greater earning power. For those who invest directly in a film, the profit share becomes crucial in relation to the revenue that the film generates and where of course a certain result is required for the direct investment to be earned back. That risk is significantly reduced if you instead invest in the company behind the production.
4. How is work progressing in other parts of the Hoi Group, and are there any particularly interesting initiatives in 2025?
The Swedish publishing operations are approaching full integration, with clear efficiency gains as a result. Most indications point to positive cash flow already in the second quarter. Significant savings have been made in both Sweden and Denmark.
Particularly exciting is the launch of our new imprint Lyrikhuset, which was introduced in March and where we are already seeing a significant influx of poets who want to join. We also have a plan for significant visibility and more media exposure going forward for all our writers who want to invest with us, regardless of genre or focus.
5. What are your main arguments to investors considering participating in the upcoming rights issue, and how do you ensure you deliver shareholder value going forward?
The Hoi share is currently valued lower than ever before - while our opportunities have never been greater. This is a significantly more extensive, stronger and more substantial business than when we came to the stock exchange in 2022. For those who find entertainment exciting and see the importance of innovation in the cultural industry, Hoi is already a rewarding investment for that reason alone. If we succeed with any of our identified investments - for example, obtaining full financing for one or two film productions - it will have a clear impact on both turnover and results already this year.
In addition to contributing to a positive share price development and eventually also providing dividends to our shareholders, I am convinced that we will be able to offer additional shareholder value through the chance to attend unique film premieres, book releases and other events that are a result of this business. The goal is to offer a sound financial investment that combines financial return with participation in a growth journey for a culturally-based business.
We thank Lars Rambe for the interview and wish him and the company every success in the future.
Disclaimer:
This is an interview that has been done on behalf of the company. Impala Nordic is a subscriber in the ongoing rights issue.
