Scandic Hotels jumps after positive profit warning

Scandic Hotels AB

10/06/2022 08:13

** Shares in Scandic Hotels  SHOTE.ST  rise around 8% after
the Nordic region's biggest hotel chain gave a positive profit
warning  urn:newsml:reuters.com:*:nFWN2XW0D5
    ** The group expects Q2 adjusted EBITDA of between SEK 1-1.1
billion ($101.20-111.32 million), which is "considerably higher
than earlier forecasts"
    ** "Hotel market has been especially strong during the first
two months of the quarter and Scandic expects similar market
development in June," it said in a statement
    ** Jefferies says it remains cautious given minimum
guarantees on leases, low relative liquidity, and high exposure
to corporate travel
    ** It adds, however, that it thinks valuation adequately
reflects these concerns
    ** The stock is set for its best day since February 2021,
gaining more than 25% year-to-date

($1 = 9.8818 Swedish crowns)

 (Reporting by Jagoda Darlak)
 ((jagoda.darlak@tr.com))