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Scandic Hotels reports strong results and cash flow for third quarter 2021

Scandic’s adjusted EBITDA for the third quarter was 709 MSEK. As a result of strong cash flow, Scandic’s net debt decreased by slightly more than 500 MSEK during the quarter.

Scandic’s net sales for the third quarter amounted to 3,734 MSEK while adjusted EBITDA totaled 709 MSEK. The company’s results were impacted positively by 132 MSEK of state aid received and a repayment of 44 MSEK related to over-consolidation from the insurance company AFA. 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 these items, adjusted EBITDA for the quarter amounted to approximately 380 MSEK, which corresponds to a margin of about 10 percent.

Thanks to strong cash flow, Scandic’s net debt decreased by just over 500 MSEK during the quarter.

Scandic’s occupancy rate for the third quarter was 55.1 percent, which is more than twice as high as during the previous quarter. The improvement has been driven by good demand for domestic leisure travel during the summer. Above all, there has been a clear improvement from historically low levels in the capital cities as a result of eased restrictions on gatherings and restaurants.

In connection with the holiday period starting to come to an end from the middle of August, the increase in business travelers and meetings has compensated for the decrease in leisure travel on weekdays. Additionally, demand on weekends continued to increase in September. Scandic is continuing to experience increased booking activity, not least for meetings, which is being driven by the gradual easing of restrictions in the company’s markets.

In light of these developments, Scandic has a positive view of market development for the coming months.

Scandic’s interim report for the third quarter will be published on October 28 at 07:30 CEST.

 

Photo: Scandic Frankfurt.