Q2 2024 Scandic Hotels Group AB Earnings Call Transcript
Key Points
- Scandic Hotels Group AB (FRA:10H) reported a strong second-quarter result with an adjusted EBITDA of SEK841 million, up from SEK772 million in the same quarter last year.
- The company achieved an improved margin of 14.3%, compared to 13.6% in the same quarter last year, due to enhanced efficiency and cost control.
- Net sales increased by 3% to SEK5.9 billion compared to SEK5.7 billion in the same period last year.
- The company successfully refinanced its loans, securing long-term financing that reflects its strategic agenda and strong financial position.
- Bookings for the third quarter look promising, with demand in line with last year and positive price development.
- Finland had a weak start to the quarter due to strikes and ongoing geopolitical issues affecting demand from international travelers.
- The market in Gothenburg had a tough quarter with few events, impacting overall demand.
- Despite the positive results, the company faced higher group costs due to increased activity levels in commercial and digitization.
- The company experienced a negative impact on demand for meetings and events due to public holidays in May.
- The occupancy rate in Garpenberg is struggling due to a weak event calendar and increased new capacity.
Thank you very much, and then, good morning, everyone, and thank you for joining us for Scandic's (technical difficulty) patient. My name is Jens Mathiesen, I'm the CEO of Scandic. And with me, I have Pär Christiansen, who's our CFO. And together, we will walk you through the quarter.
So please start on page 2. We deliver a good second-quarter margin. (technical difficulty) hold stable across all our markets, and we also have good demand and increasing prices. Net sales improved and we report a strong result with higher margins compared to the same quarter last year.
I'm very pleased that our sharp focus on (technical difficulty) control is making an impact in the quarter, which you see. With the economy also stabilizing in most of our markets, we are observing an improved payment in the sentiment among property owners. We are maintaining a high pace to expand our pipeline, and we are also investing to create an even more competitive offering.
During the quarter, we reopened a large and newly
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