Second quarter 2016 in summary
- Adjusted EBITDA grew by 31.3% to 470 MSEK (358) corresponding to a margin of 13.6% (11.3%). The improved margin is the result of strong revenue growth and efficiency gains from the Rica acquisition.
- RevPAR LFL grew by 10.9%, driven by higher occupancy and increased average room rates. Total RevPAR increased by 8.8%.
- Net sales LFL increased by 9.8% due to continued good underlying demand and the fact that this year’s Easter holiday fell entirely within the first quarter.
- Net sales rose by 8.8% to 3,447 MSEK (3,169).
First half year 2016 in summary
- Adjusted EBITDA grew by 20.0% to 509 MSEK (424) corresponding to a margin of 8.4% (7.3%). The improved margin is the result of strong revenue growth and efficiency gains from the Rica acquisition.
- RevPAR LFL for January-June grew by 6.7% driven by both higher occupancy and increased average room rates. Total RevPAR increased by 4.1%.
- Net sales LFL for January-June increased by 6.3% as a result of strong demand.
- Net sales increased during the same period by 3.6% to 6,041 MSEK (5,833). Adjusted for exchange rate fluctuations, net sales increased by 6.9%.
CEO’s comments in summary
Scandic delivers strong results, and adjusted EBITDA grew by 31.3 percent in the second quarter. Demand in all our markets was strong in the first six months and the summer season, but it is also evident that our commercial strategies are effective, and we are gaining market shares.
Commercial synergies and efficiency gains from the acquired Rica hotels continue to be realized according to plan, and the strength in our operating model became evident in connection with the Norwegian hotel strike, which had only a marginal effect on adjusted EBITDA.
Growth is well in line with expectations, and in the first six months, we opened five new hotels, two of which are prominent hotels in Stockholm. One of these hotels also represented the launch of our first signature hotel – Haymarket by Scandic.
We continue to take the positive view that market demand will remain favorable during the rest of the year.
President & CEO
Report presentation August 16, 2016 at 09.00 CET
A presentation of the report will take place at 09.00 CET today, August 16. Scandic’s President & CEO Frank Fiskers will present the report together with CFO Gunilla Rudebjer in a webcast and telephone conference.
Details for participation by telephone: +46 8 5664 2695 or +44 20 3008 9810.
Please call in 5 minutes before the start.
The presentation will be held in English.
You can view the webcast at www.scandichotelsgroup.com. The interim report and presentation slides will also be available on the website.
Scandic Hotels Group (publ) is required to publish this information in accordance with the EU’s Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication August 16, 2016 at 07:30 CET.