Scandic Hotels misses Q2 sales expectations as Finland market recovery lags
Scandic Hotels misses Q2 sales expectations as Finland market recovery lags
Overview
Sweden hotel operator's Q2 net sales rose 3.5% yr/yr but missed analyst expectations
Adjusted EPS for Q2 rose to SEK 2.01 from SEK 1.69
Company secured SEK 7.5 bln long-term financing to support Dalata acquisition
Outlook
Scandic expects Q3 occupancy to be in line with last year and higher average room rates
Company expects second-half 2026 revenue and profitability broadly in line with last year
Scandic anticipates gradual improvement in the Finnish market from current levels
Result Drivers
EVENTS AND LEISURE TRAVEL - High demand driven by a busy event calendar, strong leisure travel volumes, and stable meeting and conference market, especially in capital cities
NORWAY STRIKE IMPACT - Prolonged hotel worker strike in Norway affected the market, but strike-related compensation and operational efficiency helped limit earnings impact
CHALLENGING FINLAND - Recovery in the Finnish market slower than expected, weighing on overall performance
Company press release: ID:nWkr2G5cxJ
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | SEK 6 bln | SEK 6.08 bln (3 Analysts) |
Q2 Adjusted EPS |
| SEK 2.01 |
|
Q2 Adjusted EBITDA | Miss | SEK 796 mln | SEK 862 mln (2 Analysts) |
Q2 Free Cash Flow |
| SEK 532 mln |
|
Q2 Organic Growth |
| 1.20% |
|
Q2 RevPAR |
| SEK 882 |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "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 SEK95.00, about 9.8% above its July 14 closing price of SEK86.50
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
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.)