Second quarter in summary
- Net sales increased by 9.4% to 3,770 MSEK (3,447) due to higher RevPAR, more rooms in operation and positive currency effects.
- The Easter holiday fell entirely in April, which had a negative impact on the quarter compared with the previous year. Adjusted for calendar effects, sales growth was higher than in the first quarter.
- Adjusted EBITDA was 461 MSEK (470), and earnings per share was 2.02 SEK (2.52). Excluding currency effects related to revaluation of loans and investments, earnings per share was 2.15 SEK (2.21).
- Scandic opened nine hotels with a total of 2,008 rooms during the quarter.
- An agreement was signed to acquire Restel’s hotel operations in Finland, turning Scandic into the leading hotel operator in Finland and reinforcing the leading position in the Nordic market.
- Agreements for two new hotels, one at Landvetter Airport in Gothenburg and one in central Helsinki.
- A new loan agreement will increase flexibility and is expected to reduce financing cost.
The first six months in summary
- Net sales increased by 13.6% to 6,865 MSEK (6,041) due to higher RevPAR, more rooms in operation and positive currency effects.
- Adjusted EBITDA totaled 615 MSEK (509), corresponding to an adjusted EBITDA margin of 9.0% (8.4).
- Earnings per share amounted to 1.68 SEK (1.54). Excluding currency effects related to the revaluation of loans and investments, earnings per share amounted to 1.89 SEK (1.08).
CEO’s comments in summary
Scandic continued to develop solidly in the second quarter, with good growth in all markets and not least in Norway, which has shown clear signs of a recovery. Net sales during the quarter rose 9.4 percent despite a negative calendar effect compared with the corresponding period last year.
During the quarter, Scandic opened nine hotels with more than 2,000 rooms. We’ve never had such strong expansion in one quarter! In June, we entered into an agreement to acquire Restel’s hotel operations in Finland. This is an important milestone that consolidates our position as the largest hotel operator in the Nordic region – and makes us the leader in the Finnish market as well.
Scandic is now very well situated for the future with strong market positions and a successful business model that is bringing us commercial success. In addition, we expect that market conditions will remain favorable in 2017.
President & CEO
Report presentation July 20, 2017 at 09.00 CET
A presentation of the report will take place at 09.00 CET today, July 20. Scandic’s President & CEO Frank Fiskers will present the report together with CFO Jan Johansson in a webcast and telephone conference.
Details for participation by telephone: SE: +46 8 5664 2693, UK: +44 20 3008 9802
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.
This information is information that Scandic Hotels Group AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set below, at 7.30 CET on July 20 2017.
For further information, please contact:
Scandic is the largest hotel company in the Nordic region with 15,000 team members and a network of close to 230 hotels with about 45,000 hotel rooms in operation and under development. Scandic Friends is the biggest loyalty program in the Nordic hotel sector with 2 million members. Corporate responsibility has always been a part of Scandic’s DNA and Scandic has been named Best Hotel Brand in the Nordic countries (BDRC). Since December 2, 2015, Scandic has been listed on Nasdaq Stockholm. www.scandichotelsgroup.com