Third quarter in summary

  • Net sales rose by 79 percent to 3,734 MSEK (2,085).
  • Average occupancy more than doubled, amounting to 55.1 percent compared with 27.1 percent during the previous quarter. The occupancy rate in the corresponding quarter last year was 36 percent.
  • Adjusted EBITDA totaled 709 MSEK (90).
  • The company’s results were impacted positively by 132 MSEK of state aid received and the repayment of 44 MSEK related to over-consolidation from an insurance company. In addition, just over 150 MSEK of the profit is estimated to be attributable to temporary effects from Scandic’s quarantine-related operations in Norway. Excluding the above-mentioned items, adjusted EBITDA amounted to approximately 380 MSEK, which corresponds to a margin of about 10 percent. 
  • Scandic’s cash flow amounted to 547 MSEK and net debt decreased to 3,785 MSEK.
  • Excluding IFRS 16, earnings per share totaled 1.41 SEK (-1.06).
  • Scandic and Jan Johansson agreed that he will continue as CFO until February 28, 2022.

The period in summary

  • Net sales grew by 3 percent to 6,303 MSEK (6,093).
  • Adjusted EBITDA totaled -430 MSEK (-1,221).
  • Excluding IFRS 16, earnings per share amounted to -6.40 SEK (-39.29).
  • In March, Scandic carried out an offering of convertible bonds, raising 1,609 MSEK in gross proceeds.

Events after the reporting date

  • On October 26, Scandic announced that it had recruited Åsa Wirén as CFO. Åsa will start her new position in April 2022 at the latest.

CEO’s comments in summary

We are pleased to say that occupancy and average revenue per available room (RevPAR) increased substantially in all countries over the summer as a result of good demand for domestic leisure travel. Above all, there was a clear improvement from last year’s low levels in the capitals that was aided by the easing of restrictions on gatherings and restaurants. In total, our occupancy rate grew from 36 percent in June to just over 58 percent in July.

Occupancy levels have since remained above 50 percent throughout August and September at the same time as price levels have improved compared with the previous quarter. In connection with the holiday period nearing its end toward the middle of August, an increase in business travelers and meeting activity has compensated for the decline in leisure travel on weekdays.

Adjusted EBITDA amounted to 709 MSEK at the same time as positive cash flow contributed to reducing our net debt by more than 500 MSEK during the quarter. The company’s results were impacted positively by 132 MSEK of state aid received and the repayment of 44 MSEK related to over-consolidation from an insurance company. In addition, just over 150 MSEK of the profit is estimated to be attributable to temporary effects from Scandic’s quarantine-related operations in Norway. Even when adjusted for these items, underlying earnings were positive in all segments, with the highest profitability in our Norwegian operations. Earnings in Finland, however, were held back by continued restrictions.  

There is a great pent-up need for meetings among our corporate customers after a long period of extensive restrictions and working from home. We’ve recently seen an increase in booking activity, not least for meetings, which has been driven by the fact that pandemic restrictions have been gradually eased and more people are now returning to normal working life at their workplaces. At the moment, our meetings business is approximately 70 percent of the level it was during the same period in 2019.

It feels great to be able to welcome so many employees to Scandic again as the hotel market has improved. We’re continuing to scale up staffing while maintaining a focus on cost efficiency and a clear ambition to permanently strengthen our profitability level.

Demand has strengthened during the first weeks of October thanks to increased business travel. In light of the increased booking activity, Scandic has a positive view of market development for the coming months. We expect occupancy to be about 58 percent in October and at least 60 percent in November. We continue to estimate that positive cash flow can be reached at an occupancy level of around 50 percent.  

Jens Mathiesen
President & CEO