Scandic reports strong results and cash flow for third quarter 2021
Scandic’s adjusted EBITDA for the third quarter was 709 MSEK. As a result of strong cash flow, Scandic’s net debt decreased by slightly more than 500 MSEK during the quarter.
Scandic’s net sales for the third quarter amounted to 3,734 MSEK while adjusted EBITDA totaled 709 MSEK. The company’s results were impacted positively by 132 MSEK of state aid received and a repayment of 44 MSEK related to over-consolidation from the insurance company AFA. In addition, just over 150 MSEK of the profit is estimated to be attributable to temporary effects from Scandic’s quarantine-related operations in Norway. Excluding these items, adjusted EBITDA for the quarter amounted to approximately 380 MSEK, which corresponds to a margin of about 10 percent.
Thanks to strong cash flow, Scandic’s net debt decreased by just over 500 MSEK during the quarter.
Scandic’s occupancy rate for the third quarter was 55.1 percent, which is more than twice as high as during the previous quarter. The improvement has been driven by good demand for domestic leisure travel during the summer. Above all, there has been a clear improvement from historically low levels in the capital cities as a result of eased restrictions on gatherings and restaurants.
In connection with the holiday period starting to come to an end from the middle of August, the increase in business travelers and meetings has compensated for the decrease in leisure travel on weekdays. Additionally, demand on weekends continued to increase in September. Scandic is continuing to experience increased booking activity, not least for meetings, which is being driven by the gradual easing of restrictions in the company’s markets.
In light of these developments, Scandic has a positive view of market development for the coming months.
Scandic’s interim report for the third quarter will be published on October 28 at 07:30 CEST.
For more information, please contact:
Jan Johansson, Chief Financial Officer, Scandic Hotels Group
Phone: +46 705 75 89 72
Henrik Vikström, Director Investor Relations, Scandic Hotels Group
Phone: +46 709 52 80 06
This information is information that Scandic Hotels Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 07:45 CET on October 15, 2021.
About Scandic Hotels Group
Scandic is the largest hotel company in the Nordic countries with more than 280 hotels, in operation and under development, in more than 130 destinations. The company is the leader when it comes to integrating sustainability in all operations and its award-winning Design for All concept ensures that Scandic hotels are accessible to everyone. Well loved by guests and employees, the Scandic Friends loyalty program is the largest in the Nordic hotel industry and the company is one of the most attractive employers in the region. Scandic Hotels is listed on Nasdaq Stockholm.
Latest press releases
- May 23, 2022 13:00 CEST Scandic Oceanhamnen now open – sustainability plays leading role from quay to rooftop terrace
- May 10, 2022 12:40 CEST Bulletin from Scandic’s annual general meeting 2022
- April 28, 2022 11:55 CEST Scandic to open third hotel in Tromsø
- April 27, 2022 07:30 CEST Scandic’s interim report Q1 2022
- June 17, 2022 Silent period Q2, 2022
- July 15, 2022 Q2 Report, 2022
- September 27, 2022 Silent period Q3, 2022