Scandic Hotels (SHOT) Q1 2025 earnings summary

Executive summary

• Net sales increased by 2.9% to SEK 4,546 million, with organic growth of 3.8% driven by stable demand, improved efficiency, and favorable calendar effects.

• Adjusted EBITDA rose to SEK 101 million (33), margin improved to 2.2% (0.7%), including a SEK 43 million one-off reversal of provisions in Denmark.

• Bookings and demand for Q2 and summer are ahead of last year, supported by a robust event calendar and stable domestic business.

• Progress in digital platform launches, new website, app, and expanded loyalty partnership with SAS.

• Net loss for the period improved to SEK -217 million (-327), and earnings per share excluding IFRS 16 were SEK -0.58 (-1.10).

Financial highlights

• RevPAR increased by 5.8% to SEK 655 (619), with average occupancy at 55.1% (51.9%).

• Free cash flow was SEK -680 million (-733), with operational cash flow LTM at SEK 2,015 million.

• Net debt at SEK 998 million, leverage ratio of 0.4x, and total available liquidity of approximately SEK 2,150 million.

• Dividend of SEK 2.60 per share proposed, to be paid in two installments.

• Investments in renovations, IT, and new capacity in line with plan.

Outlook and guidance

• Expecting good demand and higher occupancy and room rates in Q2 compared to last year.

• Bookings for the remainder of Q2 and summer are better than last year.

• No signs of slowdown in demand based on current booking trends.

• The company remains vigilant regarding geopolitical and economic uncertainties but is confident in its low debt position and market leadership.