Pandox AB (publ): Interim Report - six months ending June 30, 2002

Total property revenue for the first six months of 2002 decreased by 1.5 per cent compared to the previous year and amounted to SEK 279.9 (284.3) M. The discrepancy was due to a weaker hotel market and the reduction in revenue from to the two divested hotel properties. For comparable units the decrease amounted to 2.5 per cent. Operating net amounted to SEK 232.3 (237.0) M.
The adjusted direct yield for the period was 9.5 (9.7) per cent.
Net financial expense for the period amounted to SEK -86.2 (-89.7) M.
Corporate group income before tax, exclusive of nonrecurring revenue, amounted to SEK 97.4 (102.7)) M.
Cash flow amounted to SEK 129.4 (129.8) M.
 
- "Pandox strategy has had the intended effect. The combination of active ownership, high quality hotel property portfolio and chosen market segment has limited the decrease in revenue and income while cash flow is on a par with last year", says Anders Nissen, Chief Executive Officer, Pandox AB. 
 
Outlook 
Economic developments in Pandox' market area remain difficult to predict due to prevailing global uncertainties. Following the steep decline in the hotel market in the autumn, the market has now entered a more normal recessionary pattern where there are as yet no stable trends.
However, Pandox' focused strategy, selected market segment and high quality hotel property portfolio create continued excellent conditions for further development of the company. Income after the first six months are in line with the previous forecast and we reiterate the forecast of an income, before tax and exclusive of nonrecurring revenue, of SEK 200 M.
 
The full report including tables can be downloaded from the enclosed link.

For further information: <!-- hugin-supplied --><br> Anders Nissen, Chief Executive Officer, Pandox, +46-8-506 205 50, +46 70 846 02 02 <!-- hugin-supplied --><br> <!-- hugin-supplied --><br> Nils Lindberg, Chief Financial Officer, Pandox, +46-8-506 205 53 <!-- hugin-supplied --><br> <!-- hugin-supplied --><br> Encl: Complete interim report.

About Us

Pandox is a leading owner of hotel properties in Northern Europe with a focus on sizeable hotels in key leisure and corporate destinations. Pandox's hotel property portfolio comprises 146 hotels with approximately 32,700 hotel rooms in fifteen countries. Pandox's business is organised into Property Management, which comprises hotel properties leased on a long-term basis to market leading hotel operators, and Operator Activities, which comprises hotel operations executed by Pandox in its owner-occupied hotel properties. Pandox was founded in 1995 and the company's B shares are listed on Nasdaq Stockholm.