Scandic Hotels (SHOT) Q4 2024 earnings summary

Executive summary

• Delivered a record Q4 with significantly improved results year-over-year, driven by stable bookings, improved efficiency, and positive market trends, despite lower room capacity due to strategic hotel exits and renovations.

• Net sales and room nights sold increased, with Q4 net sales up 1.4% to 5,487 million SEK and full-year net sales at 21,959 million SEK.

• Strategic focus on efficiency, cost control, digital upgrades, and portfolio optimization contributed to performance.

• Signed new hotels in Sweden and Germany, expanding the pipeline and strengthening presence in key markets.

• Board proposes a dividend of 2.60 SEK per share and a new 500 million SEK share buyback in 2025.

Financial highlights

• Q4 adjusted EBITDA reached 544 million SEK, up 20% year-over-year, with margin improved to 9.9% (from 8.3%).

• Full-year adjusted EBITDA was 2,495 million SEK with a margin of 11.4%, exceeding financial targets.

• Organic revenue growth of 1.5% in Q4 and 0.9% for the full year; like-for-like growth of 3% in Q4 and 2.3% for the year.

• Free cash flow for the year was 910 million SEK, with operational cash flow around SEK 2 billion on a rolling 12-month basis.

• Earnings per share (excl. IFRS 16) rose nearly 40% to 1.08 SEK in Q4; full-year EPS (excl. IFRS 16) was 5.23 SEK.

Outlook and guidance

• Positive outlook for 2025, expecting stable Q1 with higher occupancy and price levels versus last year.

• Gradual improvement anticipated throughout the year, supported by a strengthening Nordic economy and event calendar in key cities.

• Modest inflation and salary increases expected, with cost control measures in place.

• Board targets at least 50% of net profit (excl. IFRS 16) to be distributed as dividends.