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Revenue: SEK4.7 billion.
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Organic Growth: 10% (adjusted for currencies and acquisitions).
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Operating Margin: 16% (goal of 18%).
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Net Debt to EBITDAR: 1.7 (goal not higher than 2.5).
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Dividend: Increased to SEK2.8 per share.
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Subscription Sales: 20-25% of total seasonal pass sales.
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Retail Growth: Close to SEK450 million in turnover.
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Operating Profit: SEK740 million (second best result ever).
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Exploitation Capital Gains: SEK67 million.
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Equity Ratio: 56% (adjusted for IFRS 16).
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Operating Cash Flow: Increased by SEK415 million.
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Net Debt Reduction: SEK256 million.
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Skier Days: Increased by 7%.
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Activity Days: Increased by 6%.
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Number of Beds: 36,100.
Release Date: October 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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SkiStar AB (FRA:3AJ) achieved a strong organic growth of 10%, surpassing their goal of 6%.
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The company has increased the number of digitally sold and downloaded SkiPasses to nearly 80% of all sales.
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95% of guests are now using digital check-ins, indicating successful digital transformation efforts.
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SkiStar AB (FRA:3AJ) reported a stable financial position with a net debt to EBITDAR ratio of 1.7, providing room for future expansions.
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The company saw a significant increase in SkiStar members, reaching close to 2 million, up by almost 13%.
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The operating margin goal of 18% was not met, with the company achieving only 16%.
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The company reported a negative operating profit of SEK279 million for Q4, partly due to one-time costs and increased marketing expenses.
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Accommodation revenue was lower this year, impacted by fewer bus guests and the absence of a major event in Are.
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The company faced higher maintenance and advertising costs in Q4, affecting overall profitability.
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There is a lag in bookings from Swedish guests, with around 70-75% still not having booked their winter holidays.
Q: Could you elaborate on when the 18% margin target can be reached? Are you expecting a gradual improvement, and is it possible to reach this already in the current fiscal year? A: Martin Almgren, CFO: These goals are mid-term targets. We are aiming to reach 18%, but it's too early to say if it will be achieved next year. We believe it is possible with increased international guests, higher average spend per customer, and more cost-efficient operations.
Q: Is reaching the 18% margin target dependent on a better property market, or can it be achieved without that? A: Stefan Sjostrand, CEO: We believe we can achieve it without relying on a better property market. However, reaching the higher end of our SEK70 million to SEK100 million property gains range would help. We expect 2025 to open up more business opportunities in the property side.
Q: What can be done differently to improve marketing for the summer season? A: Stefan Sjostrand, CEO: We need to target a broader customer base and explore new guest segments. We have seen an increase in biking and hiking activities, and we will continue to refine our marketing strategies to attract more guests.
Q: Regarding the bookings, flat year over year at the beginning of October, what's the number for international guests? Is it fair to assume an increase of around 10%? A: Stefan Sjostrand, CEO: Yes, it is around 8%. The Danish guests are the largest group, and we have seen an increase in bookings from them. Swedish guests have been slower to book but are picking up recently.
Q: How does the decrease in the number of beds in your database affect your ability to control clients and drive your total offering? A: Stefan Sjostrand, CEO: We have actually gained a few hundred more beds this year. We are making organizational changes to focus more on getting beds into our system, as guests booking through our system tend to spend more. The increase in interest rates has led more people to rent out their cabins, which is an opportunity for us to attract more guests.
Q: Should we expect similar marketing costs in Q1 to bridge the gap in the booking situation? A: Stefan Sjostrand, CEO: No, the marketing campaigns were mainly related to our retail shop and brand EQPE. Marketing costs should remain stable year over year.
Q: What will the accounting changes mean for future results? Will it result in less volatility in associated incomes from Skiab? A: Martin Almgren, CFO: Yes, the changes will result in less volatility and more stable results. We are now using the same accounting principles for all our properties, which should have been done from the beginning.
Q: What is your assumption on the impact of new air routes from the UK on guest numbers? A: Stefan Sjostrand, CEO: We expect the increase in international guests to positively impact total revenue. These guests typically spend more, and the new routes will mainly benefit our largest destinations, Salen and Trysil, which have higher margins.
Q: Are you seeing an increase in international guests becoming SkiStar members? A: Stefan Sjostrand, CEO: Yes, we are seeing an increase in international guests becoming members. This helps us reduce commission costs and allows for more precise marketing. We aim to convert new guests into members quickly to improve our marketing efficiency.
Q: What is the expected CapEx budget for the '24-'25 season? A: Martin Almgren, CFO: We expect the CapEx to be around the same level as this year, possibly a bit higher. The final decision will be made in December, but it should be roughly in line with our current investment pace.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
