In This Article:
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Net Sales: Slight improvement compared to the same period last year.
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Adjusted EBITDA: SEK544 million, up from SEK451 million in the same quarter last year.
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EBITDA Margin: 9.9%, an increase from 8.3% the previous year.
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Occupancy Rate: Scandic's occupancy rate was 59.6% in the quarter.
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Average Room Rate Growth: 0.8% year-on-year.
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RevPAR Growth: 3.8% year-on-year.
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Net Pipeline: 2,972 rooms, approximately 5.5% of the portfolio.
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Net Debt: SEK128 million, improved from 0.6 times to 0.1 times year-on-year.
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Ordinary Dividend Proposal: SEK2.60 per share.
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Share Buyback Program: New program of around SEK500 million planned.
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Operational Cash Flow: Approximately SEK2 billion on a rolling 12-month basis.
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Maintenance CapEx: 3.5% for the full year.
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Scandic Hotels Group AB (FRA:10H) reported a strong quarter with significantly improved results compared to the same period last year.
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Net sales improved slightly, and more room nights were sold despite lower room capacity.
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The company has a strong financial position and is committed to capital allocation that benefits shareholders, including a proposed ordinary dividend and a new share buyback program.
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Scandic Hotels Group AB (FRA:10H) delivered strong results across all markets, with improved margins in Norway, Finland, Denmark, and Germany.
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The company has a positive market outlook for 2025, expecting stable occupancy rates and price levels in the first quarter.
Negative Points
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Despite the positive results, the company faced challenges with fewer rooms available due to hotel exits and renovations.
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The average room rate growth for Scandic was slightly below the market average, indicating potential pricing pressure.
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The company is still recovering from the impact of the war in Ukraine, which affects travel and economic conditions in Finland.
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There are concerns about cost inflation, particularly in salaries, which could impact future profitability.
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The company is dependent on market development and external factors, such as the events calendar and economic conditions, which can affect performance.
Q & A Highlights
Q: You announced a SEK500 million share buyback for 2025. Given that you've exceeded your previous capital distribution target, what are your plans for capital allocation beyond 2025? A: Par Christiansen, CFO: We have fulfilled our previous obligations and distributed the promised funds. We aim to continue focusing on creating shareholder value beyond 2026, although no specific promises can be made at this time.