Q3 2024 Scandic Hotels Group AB Earnings Call Transcript
Key Points
- Scandic Hotels Group AB (FRA:10H) delivered a good quarter despite a 1.5% reduction in available rooms compared to the same period last year.
- The company launched a new loyalty program and announced a strategic partnership with Scandinavian Airlines, enhancing commercial capabilities.
- Scandic Hotels Group AB continues to expand its portfolio with new hotel openings in Sweden and Germany, including a new hotel in Stuttgart.
- The company has announced new financial targets for 2025 to 2027, including initiatives for capital returns to shareholders.
- Scandic Hotels Group AB is in a strong financial position, with net debt reduced to below 1 times adjusted EBITDA, and plans to return at least SEK1.2 billion to shareholders between 2024 and 2026.
- The performance was impacted by a weak summer in Gothenburg and a challenging market in Finland.
- The Finnish market remains uncertain due to economic weakness and the closed border with Russia.
- Adjusted EBITA was slightly below the result in the third quarter last year, with a margin decrease from 18.1% to 17.7%.
- The company's RevPar growth was somewhat lower than the market, mainly due to lower occupancy in September.
- Currency effects and phased-out rent rebates in Germany negatively impacted financial results.
And thank you for joining us for Scandic's Q3 presentation. My name is Jens Mathiesen, I'm the CEO of Scandic. And I will walk you through the quarter and all these recent announcements together with Par Christiansen, our CFO.
As you have seen, we have a lot to share with you today so let's dive in immediately on the highlights if you move to page two. All in all, we deliver a good quarter, despite 1.5% less available rooms than in the same period last year. Revenues were in line with last year's record quarter with a good result, excluding currency effects and there's available rooms on a like-for-like basis, we actually improved sales.
The overall demand was good. And our largest markets, Sweden and Norway performed well.
I also want to highlight that the performance in the quarter was impacted by a weak summer in Gothenburg, as well as a challenging market in Finland.
We expect the market in Gothenburg to normalize with attractive events next year and next summer, but it's more uncertain when the
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