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Scandic’s interim report for the first quarter 2016 – Positive start to the year and good underlying demand

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First quarter 2016 in summary
•Results for the quarter were impacted by this year’s Easter holiday that fell entirely during the month of March.
•LFL RevPAR grew 1.7% driven by greater occupancy. Total RevPAR decreased by 1.9% mainly as a result of exchange rate fluctuations.
•Net sales LFL went up 2.3% due to continued good underlying demand.
•Net sales decreased by 2.6% to 2,594 MSEK (2,664), with mainly exchange rate fluctuations having a negative impact.
•Adjusted EBITDA amounted to 40 MSEK (66) corresponding to a margin of 1.5% (2.5).
The margin change is a result of the changed mix of guests due to the Easter holiday.
First four months in summary
•The Easter holiday fell entirely in March, which is why the quarter is not fully comparable with the first quarter of 2015. For a more fair view of the performance, the quarter should be compared with the first four months of the year.
•Scandic’s RevPAR LFL for January-April 2016 went up 7.0% driven by both increased occupancy and higher average room rates. RevPAR increased by 3.5%.
•Net sales LFL for January-April rose by 7.4%.
•Net sales increased during the same period by 2.9% to 3,669 MSEK (3,564).
Adjusted for exchange rate fluctuations, net sales increased by 6.2%.
CEO’s comments
The year started well and our RevPAR LFL has continued to develop positively. Profits during the quarter were impacted negatively by the fact that the Easter holiday fell entirely during March at the same time as efficiency gains from the acquisition of Rica Hotels have had a positive effect.
We have high level of momentum and activity in the Group and our hotel portfolio is continuing to develop positively. During April and May, we opened two large hotels in Stockholm at the same time as we added three hotels in the Nordic countries to our already strong pipeline.
Underlying demand in the market is generally good. The Norwegian hotel market, however, remains polarised but despite this, we have a positive outlook for 2016 for the Group as a whole.
Frank Fiskers
President & CEO

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