Scandic’s interim report for the first quarter 2016 – Positive start to the year and good underlying demand
First quarter 2016 in summary
- Results for the quarter were impacted by this year’s Easter holiday that fell entirely during the month of March.
- LFL RevPAR grew 1.7% driven by greater occupancy. Total RevPAR decreased by 1.9% mainly as a result of exchange rate fluctuations.
- Net sales LFL went up 2.3% due to continued good underlying demand.
- Net sales decreased by 2.6% to 2,594 MSEK (2,664), with mainly exchange rate fluctuations having a negative impact.
- Adjusted EBITDA amounted to 40 MSEK (66) corresponding to a margin of 1.5% (2.5).
The margin change is a result of the changed mix of guests due to the Easter holiday.
First four months in summary
- The Easter holiday fell entirely in March, which is why the quarter is not fully comparable with the first quarter of 2015. For a more fair view of the performance, the quarter should be compared with the first four months of the year.
- Scandic’s RevPAR LFL for January-April 2016 went up 7.0% driven by both increased occupancy and higher average room rates. RevPAR increased by 3.5%.
- Net sales LFL for January-April rose by 7.4%.
- Net sales increased during the same period by 2.9% to 3,669 MSEK (3,564).
Adjusted for exchange rate fluctuations, net sales increased by 6.2%.
The year started well and our RevPAR LFL has continued to develop positively. Profits during the quarter were impacted negatively by the fact that the Easter holiday fell entirely during March at the same time as efficiency gains from the acquisition of Rica Hotels have had a positive effect.
We have high level of momentum and activity in the Group and our hotel portfolio is continuing to develop positively. During April and May, we opened two large hotels in Stockholm at the same time as we added three hotels in the Nordic countries to our already strong pipeline.
Underlying demand in the market is generally good. The Norwegian hotel market, however, remains polarised but despite this, we have a positive outlook for 2016 for the Group as a whole.
President & CEO
Telephone conference May 12, 2016 at 09.00 CET
A telephone conference is held at 09.00 CET today, May 12. 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 under the Swedish Securities Market Act and/or Financial Instruments Trading Act. The information was submitted for publication May 12, 2016 at 07:30 CET.
For further information, please contact:
Ann-Charlotte Johansson, VP Communications & IR
Phone: +46 (0)72 180 22 44
Scandic is the largest hotel company in the Nordic region with 14,400 team members and a network of close to 230 hotels with about 44,000 hotel rooms in operation and under development. Scandic Friends is the biggest loyalty program in the Nordic hotel sector with 1.7 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