Radisson Hospitality AB

Interim Report January - September 2018

Third Quarter 2018 

• Revenue increased by MEUR 4.2 (1.7%) to MEUR 253.3. The increase is mainly due to strong performance in the like-for-like hotel portfolio, partly offset by the exit of eight leases at the end of last year and one lease this year (MEUR -8.2) and the strengthening of the Euro (MEUR -5.2). On a like-for-like basis, including hotels under renovation ("LFL&R"), Revenue increased by MEUR 16.8 (7.1%).
• Reported RevPAR for leased and managed hotels increased by 5.6% and RevPAR LFL&R by 8.9%.
• EBITDA increased by MEUR 5.8 (16.9%) to MEUR 40.2 and the EBITDA margin increased 2.1 pp to 15.9%. The increase is mainly due to the like-for-like revenue growth and reduction in operating costs in leased hotels.
• EBIT decreased by MEUR 1.0 (-4.8%) to MEUR 19.8 and the EBIT margin decreased 0.6 pp to 7.8%.
  The increase in EBITDA is offset by MEUR 5.5 higher costs for write-downs of fixed assets and MEUR 1.7 higher depreciation costs.
• Profit/loss for the period decreased by MEUR 5.3 (-36.8%) to MEUR 9.1. Profit is impacted by higher financial expenses related to the bond issue in July.
• Basic and diluted earnings per share were EUR 0.05 (0.08).
• 2,385 (1,880) rooms were contracted, 1,167 (1,573) rooms opened and 131 (649) rooms left the system.

Nine months ended September 2018 

• Revenue decreased by MEUR 12.5 (-1.7%) to MEUR 713.2. Revenue LFL&R increased by MEUR 29.3 (4.2%).
• Reported RevPAR for leased and managed hotels increased by 1.4% and RevPAR LFL&R increased by 6.5%.
• EBITDA increased by MEUR 21.4 (32.8%) to MEUR 86.7 and the EBITDA margin increased 3.2 pp to 12.2%.
• EBIT increased by MEUR 23.2 to MEUR 42.1 and the EBIT margin increased 3.3 pp to 5.9%.
• Profit/loss for the period increased by MEUR 14.2 to MEUR 24.6.
• Basic and diluted earnings per share were EUR 0.14 (0.06).
• Cash flow from operating activities amounted to MEUR 80.2 (55.4).
• 5,691 (6,724) rooms were contracted, 3,133 (3,895) rooms opened and 604 (2,848) rooms left the system.

MEUR		Q3 2018	Q3 2017	Change	%	Jan-Sep  2018	Jan-Sep 2017	Change	%
Revenue		253.3	249.1	4.2	1.7%	713.2	725.7	-12.5	-1.7%
EBITDA		40.2	34.4	5.8	16.9%	86.7	65.3	21.4	32.8%
EBIT		19.8	20.8	-1.0	-4.8%	42.1	18.9	23.2	122.8%
Profit/loss for the period		9.1	14.4	-5.3	-36.8%	24.6	10.4	14.2	136.5%
EBITDA margin		15.9%	13.8%	2.1 pp		12.2%	9.0%	3.2 pp
EBIT margin		7.8%	8.4%	-0.6 pp		5.9%	2.6%	3.3 pp