Q1 2025 Scandic Hotels Group AB Earnings Call Transcript
Key Points
- Scandic Hotels Group AB (FRA:10H) reported a solid first quarter with net sales improving by 3% and organic growth close to 4%.
- The company achieved an adjusted EBITDA of SEK101 million, up from SEK33 million in the same quarter last year, reflecting improved efficiency and cost control.
- Occupancy rates across the Nordic countries were higher or on par compared to the same period last year, with Scandic's occupancy rate slightly above the market average.
- Scandic signed an agreement for a new hotel in Berlin, expanding its presence in Germany to nine hotels with close to 3,000 rooms.
- The company is launching new digital initiatives, including a new website and app, and enhancing its loyalty program through a partnership with SAS, which is expected to drive future growth.
- Scandic's average room rate declined slightly compared to last year, particularly due to weak price development in Finland.
- The company is mindful of ongoing geopolitical tensions, which could potentially impact its markets, although no immediate effects have been observed.
- Central function costs were high in Q1 due to investments in digital initiatives, with expectations of cost pressures from salaries and inflation.
- The Finnish market remains a weak link, with new capacity in Vanta putting pressure on rates, although there are positive signals in other areas.
- Restaurant and conference revenues were flat year-on-year despite increased occupancy, reflecting ongoing efficiency measures and selective business choices.
Welcome to the Scandic Hotels Group Q1 2025 presentation. For the first part of the conference call, the participants will be in listen-only mode. (Operator Instructions)
Now, I will hand the conference over to the speaker, CEO, Jens Mathiesen, and CFO, Par Christiansen. Please go ahead.
Thank you very much and good morning everyone, and thank you for joining us for our first Q1 presentation here at Scandic.
As set by the speaker, my name is Jens Mattis. I'm the CEO of Scandic, and I'm here together with PA, our CFO, and, together we will walk you through, the quarter. But, let's start to dive into the presentation, please, let's go to Page 2.
We have a good start to the year and we deliver a solid first quarter with improved both revenues and results. Net sales improved by 3% and organic growth by close to 4%. It's also pleasing to see that, our focus on efficiency and cost control is clearly reflected in the strengthened profitability in this quarter. The
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