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Scandic’s interim report Q2 2017 – Strong growth in a highly active quarter

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Second quarter in summary
Net sales increased by 9.4% to 3,770 MSEK (3,447) due to higher RevPAR, more rooms in operation and positive currency effects.
The Easter holiday fell entirely in April, which had a negative impact on the quarter compared with the previous year. Adjusted for calendar effects, sales growth was higher than in the first quarter.
Adjusted EBITDA was 461 MSEK (470), and earnings per share was 2.02 SEK (2.52). Excluding currency effects related to revaluation of loans and investments, earnings per share was 2.15 SEK (2.21).
Scandic opened nine hotels with a total of 2,008 rooms during the quarter.
An agreement was signed to acquire Restel’s hotel operations in Finland, turning Scandic into the leading hotel operator in Finland and reinforcing the leading position in the Nordic market.
Agreements for two new hotels, one at Landvetter Airport in Gothenburg and one in central Helsinki.
A new loan agreement will increase flexibility and is expected to reduce financing cost.
The first six months in summary
Net sales increased by 13.6% to 6,865 MSEK (6,041) due to higher RevPAR, more rooms in operation and positive currency effects.
Adjusted EBITDA totaled 615 MSEK (509), corresponding to an adjusted EBITDA margin of 9.0% (8.4).
Earnings per share amounted to 1.68 SEK (1.54). Excluding currency effects related to the revaluation of loans and investments, earnings per share amounted to 1.89 SEK (1.08).
CEO’s comments in summary
Scandic continued to develop solidly in the second quarter, with good growth in all markets and not least in Norway, which has shown clear signs of a recovery. Net sales during the quarter rose 9.4 percent despite a negative calendar effect compared with the corresponding period last year.
During the quarter, Scandic opened nine hotels with more than 2,000 rooms. We’ve never had such strong expansion in one quarter! In June, we entered into an agreement to acquire Restel’s hotel operations in Finland. This is an important milestone that consolidates our position as the largest hotel operator in the Nordic region – and makes us the leader in the Finnish market as well.
Scandic is now very well situated for the future with strong market positions and a successful business model that is bringing us commercial success. In addition, we expect that market conditions will remain favorable in 2017.
Frank Fiskers
President & CEO

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