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Slovakia’s Pohoda festival has been held for 26 years, the last 20 of them at Trenčín airport. During its history, the music and arts festival has built up a wide brand awareness, attracting up to 30,000 visitors each year. Pohoda is one of the few festivals that brings together a variety of artistic genres, which, together with the superior amenities typical of this festival, helps to create a unique atmosphere. Visitors can routinely choose from up to 120 performers from dozens of countries.

Investors can currently take advantage of a unique opportunity to finance this popular Slovak brand in the form of a loan with interesting returns. 

Full information and conditions can be found in the investment documentation after expressing interest in the investment.

Pohoda was founded in 1997 and has since grown from a small festival with a capacity of 2,000 visitors to a medium-sized festival that regularly attracts up to 30,000. An important group are returning customers, who make up about half of the visitors. The festival has a multi-genre focus, with well-known performers from different parts of the world appearing each year. The performances and programme are set for all ages, including families with children. 

In addition to the visitor numbers and a rich programme, the event also attracts the attention of major Slovak sponsors from among the leading Slovak companies and the media. 

About the company

a loan with an expected yield of 10% p.a. and semi-annual interest and principal payments 

securing the loan with receivables and the Pohoda© brand 

minimum investment €1,000

Overall credit score of the company: C 

The original credit score D has improved due to securing the company's receivables and ownership of intellectual property rights. For more information on the rating, please see the "Credit Score" section below or refer to the investment documentation.

Investment parameters

Expected yield ~10% p.a., composed of an interest rate of 6% p.a. and 12M EURIBOR (currently 12M EURIBOR ~4% p.a.)

40% of the principal paid over the life of the loan (semi-annually). Remainder of the principal repayable at the end of the life of the loan, after 3 years

Securing the loan with receivables and intellectual property rights


* After fulfilling the contractually stipulated conditions (successful ticket sales, ...) there is a possibility to increase the financing by €250,000 under the same conditions.

Investment parameters – detail

Pohoda generates revenue from multiple segments, which creates successful conditions for the long-term sustainability of the company. In 2022, the company generated revenues of €5.1 million from four primary sources: festival ticket sales, the provision of advertising space for partners, food and beverage sales, and food and beverage rentals.  

The company's goals in the near term are to increase revenue and profitability by increasing the festival's capacity by +10%, which would provide additional growth in ticketing and gastro revenue. The company continues to work on the implementation of a central payment system, which as a result will not only bring transparency of payments at the festival, but also the introduction of the so-called turnover rental of stands from 2025. Thanks to these steps, Pohoda estimates an increase in revenue from the catering rentals segment of up to +30%.

The company continues to focus on the more efficient management of costs in order to return to profitability post-pandemic. Returning to the original three-day festival length will allow for better use of staffing and security costs.  

Company business model

The festival market was hit by restrictive regulations in 2020 and 2021 to reduce the impact of the COVID-19 pandemic, which created unfavourable operating conditions for Pohoda, despite the festival's move online. With the complete relaxation of anti-pandemic regulations by 2022, the Slovakian festival scene has recovered to pre-pandemic levels, with continued growth this year and revenue values as high as €53m, significantly exceeding the market size of 2019. By 2027, the Slovakian festival market is expected to reach €72m in revenue, representing a CAGR of 5.1% (Statista, 2023). 

In recent years, the festival market in Slovakia has seen an increase in competition. In Slovakia and the Czech Republic, we identify 5 main competitors: Grape, Lovestream, Uprising, Colours of Ostrava and Rock for People. Despite the growing competition, the festival market has relatively high barriers to entry due to the amount of initial investment needed to ensure high costs.  

Pohoda manages to maintain its place on the market despite greater competition, mainly thanks to its strong brand awareness, which has allowed the company to be ranked as the most famous Slovak festival. Pohoda has continued to win numerous awards, being ranked among the top 10 European festivals on multiple occasions. The unique characteristics of the festival include, in particular, high user comfort, focus on every age group, non-commercial character, and an association with freedom and liberty. Pohoda is also one of the most affordable festivals in terms of a day ticket price at €31, which creates room for growth for the company itself. 

Market and competition

Michal Kaščák – the founder and main organizer of Pohoda with more than 26 years of experience in the Slovak festival scene, during which he has built up a wide-ranging and almost unrivalled knowledge of the international music scene. He has been involved in the music industry since 1985 and is internationally recognized in the professional community.  

Founder

Wellbeing in numbers

The risk of supplier failure, especially in the delivery of the technical security of the festival. Although Pohoda is not legally liable for the technical condition of the supplier's services, it is exposed to reputational risk.

High levels of inflation and interest rates reduce the purchasing power of the population. The convenience of the festival attracts a higher educational and slightly higher age group of visitors, which is reflected in the more stable purchasing power of festival-goers.

The arrival of new competing festivals. Despite this, the Pohoda Festival manages to maintain the best value for the ticket price, which is reflected in the lowest ticket price per day compared to competing festivals. We also do not expect a change in the number of new competitors in the near future.

Risks

A company's credit score is set according to a combination of financial and non-financial indicators of the company, as a result of which we estimate the probability of default of the loan granted. These factors lead to the adjustment of the interest rate according to the amount of credit risk.  

Financial ratios – The company is performing poorly as measured by financial ratios due to weak financial performance following the pandemic years, both in terms of profitability and debt. On average, we assess the level of revenues achieved relative to liabilities, as well as the level of refinancing risk in the medium term.  

Non-financial indicators – We are positive on the longevity of the business here, with the company and team having been able to overcome difficult times in the past when the festival was closed prematurely and being able to return to profitability in the medium term. Equally positive is its position on the market, where we see it as a leader and a love brand. We see the team headed by Michal Kaščák as professional in their field with many years of experience.  

Overall rating score for the investment opportunity

The company received a rating of D, according to the internal credit model. However, the loan is secured by a creditworthy partner and ticket receivables, business shares and the trademark “Pohoda”, therefore we set the overall rating at C.

For more information on credit scores, please refer to the investment documentation, specifically the financial analysis. 

Credit score

working capital – company receivables (payables) 

F&B – food and beverage (gastro segment) 

We estimate the campaign to close in June 2024. We must close the investment opportunity from a regulatory perspective no later than December 31, 2024, 11:59 p.m.

The investment opportunity in the target company is made possible by Crowdberry Investment Platform j.s.a.

Pohoda Festival 2023 Official Aftermovie

Festival Pohoda sa stal Najlepším stredne veľkým festivalom v Európe na najprestížnejších festivalových cenách European Festival

Pohoda oznámila prvé veľké zahraničné meno. Michal Kaščák neskrýva radosť

Michal Kaščák to v roku 2024 vidí na silné mená, s niektorými už Pohoda komunikuje

Michal Kaščák z Pohody: Tento ročník sme chceli spraviť inak. Všetci headlineri sú mladí

Pohoda festival

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Peter Povala

The most popular Slovak music and arts festival with more than a quarter of a century of history, ranked among Europe’s top 10.

Crowdberry investors have already invested over €65 million in over 40 companies.

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