Scandic Hotels (SHOT) Q3 2024 earnings summary

Executive summary

• Delivered a solid Q3 with net sales of SEK 6,182 million, stable market conditions, and strong financial position despite a 2% sales decline and 1.5% fewer available rooms.

• Strong performance in Sweden and Norway; Finland faced challenges due to weak economy and closed Russian border.

• Launched a new seven-tier loyalty program and announced a strategic partnership with Scandinavian Airlines, aiming to double loyalty members by 2030.

• Portfolio growth continued with new hotel signings in Sweden, Germany, and the Nordics, including the opening of a second Scandic Go in Stockholm.

• Announced new financial targets for 2025–2027, including a net debt/adjusted EBITDA target below 1x and enhanced shareholder returns.

Financial highlights

• Net sales reached SEK 6,182 million, with like-for-like growth of 0.5% and Q3 adjusted EBITDA of SEK 1,077 million (down from SEK 1,173 million); margin at 17.4% (down from 18.6%).

• Excluding one-offs, adjusted EBITDA was SEK 1,092 million; margin 17.7%.

• Free cash flow for Q3 was SEK 659 million; operational cash flow on a rolling 12-month basis was SEK 1,856 million.

• Maintenance CapEx YTD increased to SEK 476 million; expansion CapEx SEK 159 million.

• Net debt reduced to SEK 36 million; net debt/adjusted EBITDA at 0.0x.

Outlook and guidance

• Q4 2024 expected to see occupancy and room rates in line with last year; stable booking situation.

• Nordic hotel market anticipated to gradually improve in 2025, with positive RevPAR growth and lower cost inflation.

• Margin target of at least 11% set as a floor, with ambitions to exceed.

• Commercial initiatives and new digital platforms expected to drive top-line growth and market share.

• Focus remains on efficiency and cost control.