Helios Fairfax Partners Announces Q3 2023 Financial Results
Helios Fairfax Partners Corporation has released its financial results for the three and nine months ended September 30, 2023. The results, prepared in accordance with International Financial Reporting Standards (IFRS), demonstrate the company's performance and financial position.
Management Commentary
Tope Lawani and Babatunde Soyoye, Co-CEOs of Helios Fairfax Partners, highlighted the progress made in monetizing Legacy Non-Core Investments during the third quarter of 2023. The company realized $14 million in proceeds from the sale of a significant tranche of one of the remaining investments, with plans to complete the sale of the residual portion in 2024. They also mentioned entering into an agreement to sell certain other related Legacy Non-Core Investments. The company's strategy of seeding investments in the sports and entertainment sector was further supported by funding an additional loan facility for Event Horizon. With $116 million in cash available at the end of the quarter, Helios Fairfax Partners remains well-positioned to make innovative and value-creating investments in Africa.
Highlights of Q3 2023
During the third quarter, the book value per share decreased by $0.02 or 0.4% quarter-over-quarter. The investment in Alternative Asset Management and Helios Managed Investments contributed $0.05 to the book value per share, while the sale of a significant tranche of one of the Insured and Guaranteed Legacy Non-Core Investments reduced it by $0.12. For the nine months ended September 30, 2023, the book value per share grew by $0.08 or 1.6%.
The company reported earnings of $9.2 million for the first nine months of 2023, a decrease of 16% during the third quarter. Additionally, Helios Fairfax Partners completed the sale of a portion of its indirect equity interest in AGH, one of its Insured and Guaranteed Legacy Non-Core Investments, for $14 million and committed to selling the remaining interest for $2.4 million in 2024.
Financial Position and Results of Operations
In the third quarter of 2023, Helios Fairfax Partners reported a net loss of $1.8 million, compared to a net loss of $29.0 million in the same period of 2022. The net losses in 2023 were primarily due to unrealized losses on the company's Investment in Alternative Asset Management. The company's book value per share as of September 30, 2023, was $5.11, and it had $116.2 million of cash and cash equivalents available for future investments.
For more detailed information, the complete third-quarter report can be accessed on Helios Fairfax Partners' website.
About Helios Fairfax Partners Corporation
Helios Fairfax Partners Corporation is an investment holding company focused on achieving long-term capital appreciation by investing in public and private equity securities and debt instruments in Africa and African businesses. The company aims to be a trusted partner of choice to corporates and entrepreneurs, making innovative and value-creating investments in the region.
Contact Information
For media inquiries, please contact Neil Weber at LodeRock Advisors.
Disclaimer: This press release may contain forward-looking statements, and readers are advised to refer to the company's annual report for a complete list of factors and assumptions that could affect the company's actual results. The company does not undertake to update any forward-looking statements contained herein.
Helios Fairfax Partners' Q3 2023 financial results offer an intriguing insight into the potential opportunities and challenges for new businesses in Africa. The company's successful monetization of Legacy Non-Core Investments, yielding $14 million, underscores the potential for strategic asset management in the region. Furthermore, their commitment to seeding investments in the sports and entertainment sector, supported by an additional loan facility for Event Horizon, highlights the growing opportunities in these industries. However, the 16% decrease in earnings during the third quarter and a net loss of $1.8 million indicate potential volatility and risk in the market. These financial results underscore the importance of strategic planning, risk management, and innovative investment for new businesses. Despite these challenges, with $116.2 million of cash and cash equivalents available for future investments, Helios Fairfax Partners' financial position remains strong, demonstrating the potential for growth and success in the African market. This suggests that while new businesses may face certain challenges, with the right strategies and investments, there are significant opportunities for growth and success in the region.
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