In This Article:
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Net Sales: SEK6.2 billion, excluding negative exchange effects of SEK159 million.
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Adjusted EBITDA: SEK1,077 million, compared to SEK1,173 million in the same quarter last year.
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EBITDA Margin: 17.7%, compared to 18.1% last year.
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Occupancy Rate: Increased slightly from 71% to 71.4%.
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Average Room Rate Increase: 2.5% compared to the same quarter last year.
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RevPar Growth: Increased by approximately 3% year-on-year.
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Net Debt: SEK36 million, resulting in a net debt to adjusted EBITDA ratio of 0.0x.
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Operational Cash Flow: SEK1.9 billion on a rolling 12-month basis.
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Free Cash Flow: SEK940 million on a rolling 12-month basis.
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Maintenance CapEx: SEK476 million year-to-date, expected to be around 3% of net sales for the full year.
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Expansion CapEx: SEK159 million year-to-date.
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Shareholder Returns: Plan to return at least SEK1.2 billion to shareholders between 2024 and 2026.
Release Date: October 30, 2024
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) delivered a good quarter despite a 1.5% reduction in available rooms compared to the same period last year.
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The company launched a new loyalty program and announced a strategic partnership with Scandinavian Airlines, enhancing commercial capabilities.
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Scandic Hotels Group AB continues to expand its portfolio with new hotel openings in Sweden and Germany, including a new hotel in Stuttgart.
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The company has announced new financial targets for 2025 to 2027, including initiatives for capital returns to shareholders.
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Scandic Hotels Group AB is in a strong financial position, with net debt reduced to below 1 times adjusted EBITDA, and plans to return at least SEK1.2 billion to shareholders between 2024 and 2026.
Negative Points
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The performance was impacted by a weak summer in Gothenburg and a challenging market in Finland.
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The Finnish market remains uncertain due to economic weakness and the closed border with Russia.
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Adjusted EBITA was slightly below the result in the third quarter last year, with a margin decrease from 18.1% to 17.7%.
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The company's RevPar growth was somewhat lower than the market, mainly due to lower occupancy in September.
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Currency effects and phased-out rent rebates in Germany negatively impacted financial results.
Q & A Highlights
Q: Can you elaborate on why RevPar was weaker than the market in Q3, particularly in Sweden, and clarify if the flat RevPar guidance for Q4 is in constant currency or actual? A: Jens Mathiesen, CEO: The weaker RevPar was partly due to a lack of events in Gothenburg compared to last year, which significantly impacted room rates. However, Stockholm performed well. The flat RevPar guidance for Q4 is in constant currency, indicating stability in occupancy and pricing levels.