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Scandic Hotels Q3 sales meet estimates on strong demand; expects higher occupancy, rates in Q4

By Reuters News


Overview

  • Sweden-based hospitality group's Q3 net sales rose 7.9%, meeting analyst expectations

  • Adjusted EPS for Q3 rose yr/yr

  • Company completed Dalata hotel operations acquisition after quarter-end, expanding European presence


Outlook

  • Company sees higher occupancy and room rates in Q4, given solid demand for business travel, meetings and conferences

  • Scandic plans to pursue growth in more markets following Dalata acquisition


Result Drivers

  • STRONG DEMAND AND EVENTS - Higher occupancy and increased room rates driven by strong demand and a busy event calendar, per CEO

  • SWEDEN PERFORMANCE - Record quarter in Sweden attributed to concerts, major conferences and operational efficiency, per CEO

  • REGIONAL VARIATION - Norway saw strong growth despite earlier strike impact; Finland market stabilized with modest improvement, per CEO


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Meet

SEK 6.88 bln

SEK 6.88 bln (3 Analysts)

Q3 Adjusted EPS

SEK 3.86

Q3 Adjusted EBITDA

Beat

SEK 1.33 bln

SEK 1.24 bln (2 Analysts)

Q3 Free Cash Flow

SEK 945 mln

Q3 Organic Growth

4.50%

Q3 RevPAR

SEK 1,030


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy."

  • Wall Street's median 12-month price target for Scandic Hotels Group AB is SEK99.50, about 6.4% below its November 9 closing price of SEK106.30

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Nov 9 - British hotel operator Whitbread's shareholders reject Corvex-backed director

  • Nov 9 - Canada's Boston Pizza Q3 franchise sales hit record, helped by FIFA World Cup

  • Nov 9 - Target Hospitality Q3 revenue up 30%, beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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