Q2 2026 T4F Entretenimento SA Earnings Call
Speaker #1: Good afternoon, everyone, and thank you for joining Time for Fun's earnings conference call for the second quarter of 2026. The second quarter was marked by a leaner calendar of company-promoted events. Teatro Reno was leased for the staging of Shrek the Musical, and in May we promoted a concert by French singer Palm.
[Company Representative] (T4F): Good afternoon, everyone, and thank you for joining Time For Fun's earning conference call for the second quarter of 2026. The second quarter was marked by a leaner calendar of company-promoted events. Teatro Renault was leased for the staging of Shrek The Musical, and in May, we promoted a concert by French singer Pomme. Following Marisa Monte's tour in Brazil in the northeast, held at the beginning of the year, we announced a new performance, this time at Neo Química Arena in November. For the coming quarter, Teatro Renault will host the premiere of Meu Filho, O Musical, inspired by the life of Paulo Gustavo, in addition to other productions that we expect to announce soon. We will now move on to the quarter's financial and operating highlights. On slide 5, we highlight our operating performance.
[Company Representative] (T4F): Good afternoon, everyone, and thank you for joining Time For Fun's earning conference call for the second quarter of 2026. The second quarter was marked by a leaner calendar of company-promoted events. Teatro Renault was leased for the staging of Shrek The Musical, and in May, we promoted a concert by French singer Pomme. Following Marisa Monte's tour in Brazil in the northeast, held at the beginning of the year, we announced a new performance, this time at Neo Química Arena in November. For the coming quarter, Teatro Renault will host the premiere of Meu Filho, O Musical, inspired by the life of Paulo Gustavo, in addition to other productions that we expect to announce soon. We will now move on to the quarter's financial and operating highlights. On slide 5, we highlight our operating performance.
Speaker #1: Following Marisa Monte's tour in Brazil in the Northeast, held at the beginning of the year, we announced a new performance, this time at Newbank Park in November.
Speaker #1: For the coming quarter, Teatro Reno will host the premiere of Meu Filho Musical, inspired by the life of Paulo Gustavo, in addition to other productions that we expect to announce soon.
Speaker #1: We will now move on to the quarter's financial and operating highlights. On Slide 5, we highlight our operating performance: during the second quarter of 2026, we promoted one live music event—the concert by French artist Palm—compared with six events in the second quarter of 2025.
[Company Representative] (T4F): During the second quarter of 2026, we promoted one live music event, the concert by French artist Pomme, compared with six events in the second quarter of 2025. In H1, we promoted four events and sold 53.6 thousand tickets versus six events and 30.2 thousand tickets in the six months of 2025. In addition to the events promoted by the company, Teatro Renault hosted the season of Shrek The Musical during the quarter. Also on slide 5, net revenue in the second quarter of 2026 totaled BRL 23.8 million, down 56% from the second quarter of 2025, mainly reflecting the leaner calendar of company-promoted events during the period. In event promotion, net revenue was BRL 0.3 million, reflecting Pomme's single performance. In ticketing, food and beverage, and venues operations, net revenue totaled BRL 21.1 million, down 28% from the second quarter of 2025.
[Company Representative] (T4F): During the second quarter of 2026, we promoted one live music event, the concert by French artist Pomme, compared with six events in the second quarter of 2025. In H1, we promoted four events and sold 53.6 thousand tickets versus six events and 30.2 thousand tickets in the six months of 2025. In addition to the events promoted by the company, Teatro Renault hosted the season of Shrek The Musical during the quarter. Also on slide 5, net revenue in the second quarter of 2026 totaled BRL 23.8 million, down 56% from the second quarter of 2025, mainly reflecting the leaner calendar of company-promoted events during the period. In event promotion, net revenue was BRL 0.3 million, reflecting Pomme's single performance. In ticketing, food and beverage, and venues operations, net revenue totaled BRL 21.1 million, down 28% from the second quarter of 2025.
Speaker #1: In the first half of the year, we promoted 4 events and sold 53.6 thousand tickets, versus 6 events and 30.2 thousand tickets in the first six months of 2025.
Speaker #1: In addition to the events promoted by the company, Teatro Renault hosted the season of Shrek the Musical during the quarter. Also on slide 5, net revenue in the second quarter of 2026 totaled $23.8 million, down 56% from the second quarter of 2025.
Speaker #1: Mainly reflecting the leaner calendar of company-promoted events during the period. In event promotion, net revenue was $0.3 million, reflecting Palm's single performance. In ticketing, food and beverage, and venue operations, net revenue totaled $21.1 million, down 28% from the second quarter of 2025.
Speaker #1: Sponsorship net revenue totaled $2.3 million, a decrease of 85%. On slide 6, gross profit reached $3.8 million in the second quarter of 2026, down 71% from the second quarter of 2025.
[Company Representative] (T4F): Sponsorship net revenue totaled BRL 2.3 million, a decrease of 85%. On slide 6, gross profit reached BRL 3.8 million in the second quarter of 2026, down 71% from the second quarter of 2025. Gross margin was 16% compared to 24% in the same period of the previous year. Continuing on slide 6, we have operating expenses. SG&A decreased by 37% to BRL 9.3 million in the second quarter of 2026. Including other operating income and expenses, operating expenses totaled BRL 11.6 million in the second quarter of 2026, remaining virtually stable compared to the second quarter of 2025. Moving to slide 7, EBITDA in the second quarter of 2026 was -BRL 6.2 million, compared with +BRL 3.1 million in the second quarter of 2025.
[Company Representative] (T4F): Sponsorship net revenue totaled BRL 2.3 million, a decrease of 85%. On slide 6, gross profit reached BRL 3.8 million in the second quarter of 2026, down 71% from the second quarter of 2025. Gross margin was 16% compared to 24% in the same period of the previous year. Continuing on slide 6, we have operating expenses. SG&A decreased by 37% to BRL 9.3 million in the second quarter of 2026. Including other operating income and expenses, operating expenses totaled BRL 11.6 million in the second quarter of 2026, remaining virtually stable compared to the second quarter of 2025. Moving to slide 7, EBITDA in the second quarter of 2026 was -BRL 6.2 million, compared with +BRL 3.1 million in the second quarter of 2025.
Speaker #1: Gross margin was 16%, compared to 2024 and the same period of the previous year. Continuing on slide 6, we have operating expenses. SG&A decreased by 37% to $9.3 million in the second quarter of 2026.
Speaker #1: Including other operating income and expenses, operating expenses totaled $11.6 million in the second quarter of 2026, remaining virtually stable compared to the second quarter of 2025.
Speaker #1: Moving to slide 7, EBITDA in the second quarter of 2026 was negative $6.2 million, compared with positive EBITDA of $3.1 million in the second quarter of 2025.
Speaker #1: EBITDA margin was minus 25.8% in the quarter, versus 5.7% in the second quarter of 2025, reflecting the lower level of company-promoted event activity during the period.
[Company Representative] (T4F): EBITDA margin was -25.8% in the quarter versus 5.7% in the second quarter of 2025, reflecting the lower level of company-promoted event activity during the period. On slide 8, we present the financial results. Net financial results was -BRL 6.2 million in the second quarter of 2026, compared with -BRL 4.2 million in the second quarter of 2025. The variation mainly reflects lower interest income, partially offset by lower financial expenses resulting from the reduction in debt and consequently lower interest expense, as well as lower combined negative impact from foreign exchange, monetary, and hyperinflation effects. On slide 9, we present net income. The company recorded a net loss of BRL 14.6 million in the second quarter of 2026, compared with a net loss of BRL 0.1 million in the second quarter of 2025.
[Company Representative] (T4F): EBITDA margin was -25.8% in the quarter versus 5.7% in the second quarter of 2025, reflecting the lower level of company-promoted event activity during the period. On slide 8, we present the financial results. Net financial results was -BRL 6.2 million in the second quarter of 2026, compared with -BRL 4.2 million in the second quarter of 2025. The variation mainly reflects lower interest income, partially offset by lower financial expenses resulting from the reduction in debt and consequently lower interest expense, as well as lower combined negative impact from foreign exchange, monetary, and hyperinflation effects. On slide 9, we present net income. The company recorded a net loss of BRL 14.6 million in the second quarter of 2026, compared with a net loss of BRL 0.1 million in the second quarter of 2025.
Speaker #1: On slide 8, we present the financial results. Net financial results were negative $6.2 million in the second quarter of 2026, compared with negative $4.2 million in the second quarter of 2025.
Speaker #1: The variation mainly reflects lower interest income, partially offset by lower financial expenses resulting from the reduction in debt and, consequently, lower interest expense, as well as a lower combined negative impact from foreign exchange, monetary, and hyperinflation effects.
Speaker #1: On slide 9, we present net income. The company recorded a net loss of $14.6 million in the second quarter of 2026, compared with a net loss of $0.1 million in the second quarter of 2025.
Speaker #1: In the first half of the year, the net loss totaled $18.6 million, compared to $12 million in the first six months of 2025. Regarding the company's cash position, as shown on slide 10, we ended the second quarter of 2026 with gross cash of $37.5 million and total debt of $23.6 million, resulting in net cash of $13.9 million, down 50% from net cash of $27.5 million in the first quarter of 2026.
[Company Representative] (T4F): In the H1 of the year, the net loss totaled BRL 18.6 million, compared to BRL 12 million in the 6 months of 2025. Regarding the company's cash position, as shown on slide 10, we ended the Q2 of 2026 with gross cash of BRL 37.5 million and total debt of BRL 23.6 million, resulting in net cash of BRL 13.9 million, down 50% from net cash of BRL 27.5 million in the Q1 of 2026. On slide 11, we present the company's cash flow. Operating cash flow was -BRL 6.8 million in the Q2 of 2026, compared with -BRL 33.1 million in the Q2 of 2025, reflecting the lower level of operating expenditures in the quarter. Cash flow from financing was -BRL 18.4 million, compared with -BRL 3.6 million in the Q2 of 2025, due to principal and interest payments on outstanding loans.
[Company Representative] (T4F): In the H1 of the year, the net loss totaled BRL 18.6 million, compared to BRL 12 million in the 6 months of 2025. Regarding the company's cash position, as shown on slide 10, we ended the Q2 of 2026 with gross cash of BRL 37.5 million and total debt of BRL 23.6 million, resulting in net cash of BRL 13.9 million, down 50% from net cash of BRL 27.5 million in the Q1 of 2026. On slide 11, we present the company's cash flow. Operating cash flow was -BRL 6.8 million in the Q2 of 2026, compared with -BRL 33.1 million in the Q2 of 2025, reflecting the lower level of operating expenditures in the quarter. Cash flow from financing was -BRL 18.4 million, compared with -BRL 3.6 million in the Q2 of 2025, due to principal and interest payments on outstanding loans.
Speaker #1: On slide 11, we present the company's cash flow. Operating cash flow was negative $6.8 million in the second quarter of 2026, compared with negative $33.1 million in the second quarter of 2025, reflecting the lower level of operating expenditures in the quarter.
Speaker #1: Cash flow from financing was negative $18.4 million, compared with negative $3.6 million in the second quarter of 2025, due to principal and interest payments on outstanding loans.
Speaker #1: Total debt at the end of the quarter was $23.6 million, down 63% from the second quarter of 2025, and 32% from the first quarter of 2026.
[Company Representative] (T4F): Total debt ended the quarter at BRL 23.6 million, down 63% from the Q2 of 2025 and 32% from the Q1 of 2026. We will now present our pipeline. In live music, Marisa Monte will perform at Neo Química Arena in November with tickets already nearly sold out. Ticket sales also remain open for Laura Pausini's performance at Pacaembu in February of 2027. In the family and theater segment, Teatro Renault hosts the performances of "Minha Vida em Marte," starring Mônica Martelli, and ticket sales are now open for "Meu Filho, O Musical," with performances beginning in August, in addition to other content to be announced soon. Thank you all for your trust. I reaffirm our purpose of bringing people together through exciting experiences that celebrate life.
[Company Representative] (T4F): Total debt ended the quarter at BRL 23.6 million, down 63% from the Q2 of 2025 and 32% from the Q1 of 2026. We will now present our pipeline. In live music, Marisa Monte will perform at Neo Química Arena in November with tickets already nearly sold out. Ticket sales also remain open for Laura Pausini's performance at Pacaembu in February of 2027. In the family and theater segment, Teatro Renault hosts the performances of "Minha Vida em Marte," starring Mônica Martelli, and ticket sales are now open for "Meu Filho, O Musical," with performances beginning in August, in addition to other content to be announced soon. Thank you all for your trust. I reaffirm our purpose of bringing people together through exciting experiences that celebrate life.
Speaker #1: We will now present our pipeline. In live music, Marisa Montes will perform at Newbank Park in November, with tickets already nearly sold out. Ticket sales also remain open for Laura Pausini's performance at Packing Boo in February 2027.
Speaker #1: In the family and theater segment, Teatro Renault hosts performances of Minha Vida em Marte, starring Monica Martelli, and ticket sales are now open for Meu Filho Musical, with performances beginning in August, in addition to other content to be announced soon.
