Afrigather 
3 minute learn
Scandic
Scandic releases yr finish report 2023
Fourth quarter in abstract, October 1 – December 31, 2023.
- Internet gross sales rose by 3.5 % to five,410 million SEK (5,228).
- Common occupancy price was 57.9 % (57.0).
- Common income per out there room (RevPAR) went as much as 734 SEK (695).
- Working revenue totaled 502 million SEK (488).
- Adjusted EBITDA was 451 million SEK (476).
- Excluding IFRS 16, earnings per share equaled 0.78 SEK (0.49).
- Free money move was 549 million SEK (945).
- Curiosity-bearing internet debt/adjusted EBITDA amounted to 0.6x (0.2x excluding the convertible mortgage).
January 1 – December 31, 2023 in abstract.
- Internet gross sales rose by 14.1 % to 21,935 million SEK (19,230).
- Common occupancy price elevated to 61.4 % (57.7).
- Common income per out there room (RevPAR) went as much as 782 SEK (683).
- Working revenue totaled 2,785 million SEK (2,457).
- Adjusted EBITDA was 2,566 million SEK (2,536).
- Excluding IFRS 16, earnings per share equaled 5.09 SEK (4.10).
- Free money move was 1,754 million SEK (2,202).
- Curiosity-bearing internet debt/adjusted EBITDA amounted to 0.6x (0.2x excluding the convertible mortgage).
Occasions through the interval
- On December 14, Scandic signed an settlement with Pandox to take over a 311-room resort in Nuremberg. Scandic will begin working the resort on March 1, 2024.
- Scandic additionally signed an settlement on November 24 to increase and rebrand the Vacation Inn Metropolis Centre resort in downtown Helsinki. From 2025, the resort can be operated underneath the Scandic model.
- On November 15, Scandic repurchased convertible bonds for a nominal quantity of 590.2 million SEK.
- On October 24, Scandic introduced that it will implement Oracle Hospitality OPERA Cloud.
Occasions after the reporting date
- On January 14, Pär Christiansen was appointed new Chief Monetary Officer and member of the Government Committee. Per will begin on March 1, 2024.
CEO’S COMMENTS
“Bookings are in keeping with final yr and we’ve got a optimistic outlook for 2024. With a robust monetary place and excessive ambitions for Scandic, we’re now stepping up the tempo to develop the resort portfolio and create even higher visitor experiences.”
An excellent fourth quarter has concluded one more document yr the place we maintained a excessive tempo and achieved new milestones. Scandic has delivered good progress and profitability, and I’m proud that visitor satisfaction has elevated throughout all markets whereas on the similar time we improved effectivity.
The assembly season this previous fall was good with excessive demand from company visitors, and with the inns we’ve opened previously years, Scandic has a robust providing. In contrast with the identical interval in 2022, we offered extra room nights, and all markets noticed elevated occupancy charges at increased room charges. Scandic continues to carry out barely higher than the general market, and RevPAR remained at constantly excessive ranges.
Internet gross sales within the fourth quarter elevated steadily, and we reported a great consequence in keeping with final yr, excluding non-recurring gadgets. For the complete yr, revenues elevated to 22 billion SEK, and adjusted EBITDA rose barely to 2.6 billion SEK, which resulted in an working margin of 11.7 (13.2) %. Adjusted for non-recurring gadgets, the working margin improved to 11.4 (11.1) %.
Throughout the quarter, we did a buyback of about one-third of the convertible bonds. This implies a considerably decrease dilution of shares within the occasion of a conversion in October 2024. Scandic generates sturdy money flows, and we continued to scale back our debt, which, together with the convertible mortgage, amounted to 0.66x adjusted EBITDA (1.1x) at year-end.
With a robust monetary place, we’ve elevated the tempo of funding within the resort portfolio and inside digitalization to create even higher visitor experiences. Our ambition now could be to return to a extra regular stage of funding for renovations and upkeep, about 3 to 4 % of internet gross sales per yr. The implementation of our new cloud-based IT answer (Oracle Hospitality OPERA Cloud) goes in accordance with plan, and we’re nonetheless aiming to attach all inns and central capabilities to the brand new platform through the first half of 2024. As soon as the brand new platform is in place, we count on to capitalize on increased effectivity and make important enhancements to the visitor journey the place amongst different issues we’re making our Scandic Mates loyalty program much more engaging.
Throughout the quarter, we additionally signed a brand new lease settlement for a 311-room resort in Nuremberg. Pandox not too long ago carried out a serious renovation of the resort, which reopened in fall 2023. Scandic will take over operations of the resort on March 1, one other milestone on our progress journey in Germany.
Our first Scandic Go has now been open for six months, and we’re very happy with how the resort and model have been obtained by visitors. We’re now gearing as much as open one other Scandic Go in Stockholm towards the tip of the summer season and looking out ahead to increasing within the fast-growing economic system section.
To strengthen our providing and optimize progress and profitability, we continuously consider which agreements ought to be prolonged or terminated. Throughout the quarter, we signed an settlement to increase and rebrand Vacation Inn Metropolis Centre, a 174-room resort in Helsinki, that we’ll function as a Scandic resort from 2025. We additionally terminated two lease agreements through the first quarter and through the yr, we plan to exit two extra inns. At year-end, we had internet 2,138 new rooms within the pipeline, comparable to about 4 % of the resort portfolio.
Bookings are in keeping with final yr and we’ve got a optimistic outlook for 2024. As a result of the Easter vacation will fall earlier this yr than final yr, we count on considerably decrease occupancy for the primary quarter in contrast with 2023 nonetheless at continued increased value ranges. Scandic is commercially and financially stronger than ever, and we’re stepping up the tempo to develop our resort portfolio and to create even higher visitor experiences. In conclusion, I wish to lengthen a thanks to all our staff members who made this attainable and to our visitors who select to remain at our inns. I sit up for an eventful yr.
Jens Mathiesen
President & CEO
