Kinnevik of Sweden's Profit Declines as Assets Drop

Kinnevik Investment AB (KINVB), the Stenbeck family's holding company, said fourth-quarter profit fell 28 percent after the value of investments dropped.

Net income declined to 6.65 billion kronor ($1 billion), from 9.19 billion kronor a year earlier, Stockholm-based Kinnevik said in a statement today. The fair value of financial assets decreased 28 percent to 6.73 billion kronor.

The Stenbecks are among Sweden's most powerful industrial dynasties, controlling companies ranging from the phone company Tele2 AB (TEL2B) to Metro International SA, publisher of free newspapers in 20 countries. Kinnevik has also expanded into new investments such as agricultural operations in Poland and Russia and into financial services and micro-credit loans in Africa.

``Kinnevik is exposed to financial risks mainly in respect of changes in the value of the stock portfolio, changes in market interest rates, exchange rate risks and liquidity and refinancing risks,'' Kinnevik said. ``The group is also exposed to political risks since the companies invested in have a substantial part of their operations in emerging markets.''

To contact the reporter on this story: Niklas Magnusson in Stockholm at nmagnusson1@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net; Adrian Cox at acox2@bloomberg.net

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