Year-End Report 1998
1998 in brief
* Income after net financial items rose by 60 per cent to SEK 274 million
(171m). Adjusted for an item affecting comparability, earnings improved by 71
per cent to SEK 293 million (171m).
* Sales rose by 35 per cent to SEK 5,004 million (3,697m). For comparable
units, sales rose by 8 per cent, due to an increase in volumes and average
* The operating margin rose to 6.2 per cent (5.2%) and the return on equity
was 19 per cent (24%). Adjusted for an item affecting comparability, the
operating margin was 6.5 per cent.
* A total of 22 hotels were added to the Group's portfolio during the year,
including 20 in Finland. This corresponds to a 20 per cent increase in room
* In conjunction with the acquisition of the Finnish hotel chain Arctia a new
share issue, at the value of SEK 783 million, was carried out.
* An agreement has been reached regarding the sale of the majority of
independent restaurants taken over as part of the acquisition of the Finnish
hotel chain, Arctia. The transaction will be completed during the first
quarter of 1999.
* At the beginning of the year, Scandic formed the property company Hotellus
International, to which the company's five properties were transferred.
Hotellus has since expanded and now owns 14 hotel properties with a book value
of SEK 1,700 million. During the period, Scandic gradually reduced its
ownership interests in the company from 100 per cent to 49.9 per cent.
* The cash flow amounted to SEK 127 million (175m). Adjusted for acquisitions
and sales of fixed assets, the cash flow amounted to SEK 255 million (158m).
* Earnings per share amounted to SEK 9.79 (8.10). Adjusted for an item
affecting comparability, earnings per share amounted to SEK 10.69.