Radisson Hospitality AB: January-December 2018

Share Button

Fourth Quarter 2018Revenue increased by MEUR 4.4 (1.8%) to MEUR 246.0. 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 two leases this year (in total MEUR -7.4) as well as the strengthening of the Euro (MEUR -2.4). On a like-for-like basis, including hotels under renovation (“LFL&R”), Revenue increased by MEUR 12.3 (5.4%).Reported RevPAR for leased and managed hotels increased by 2.9%. RevPAR LFL&R increased by 3.3%, with significant contribution from leased hotels (5.4%).EBITDA increased by MEUR 0.2 (1.2%) to MEUR 17.0 and the EBITDA margin decreased 0.1 pp to 6.9%. The increase is mainly due to the like-for-like revenue growth and reduction in operating costs in leased hotels, offset by an increase in one-off costs for restructuring and IT transformation of MEUR 6.0. Adjusted EBITDA increased by MEUR 8.3 (32.9%) to MEUR 33.5.EBIT decreased by MEUR 6.2 (-147.6%) to MEUR -10.4 and the EBIT margin decreased 2.5 pp to -4.2%.
The decrease is mainly due to higher costs for write-downs of fixed assets of MEUR 7.8. Adjusted EBIT increased by MEUR 6.9 (48.3%) to MEUR 21.2.
Profit/loss for the period decreased by MEUR 15.0 (-250.0%) to MEUR -21.0. Profit/loss for the period is impacted by higher financial expenses due to of the bond issuance in July and write-downs of financial investments. Also, MEUR 6.5 has been provided for a tax case in one of the Swedish subsidiaries.Basic and diluted earnings per share were EUR -0.12 (-0.04).1,505 (752) rooms were contracted, 950 (1,144) rooms opened and 1,399 (1,347) rooms left the system.
Twelve months ended December 2018
Revenue decreased by MEUR 8.1 (-0.8%) to MEUR 959.2. Revenue LFL&R increased by MEUR 41.5 (4.5%).Reported RevPAR for leased and managed hotels increased by 1.8%. RevPAR LFL&R increased by 5.8%.EBITDA increased by MEUR 21.6 (26.3%) to MEUR 103.7 and the EBITDA margin increased 2.3 pp to 10.8%. Adjusted EBITDA increased by MEUR 22.8 (23.2%) to MEUR 121.0.EBIT increased by MEUR 17.0 (115.6%) to MEUR 31.7 and the EBIT margin increased 1.8 pp to 3.3%. Adjusted EBIT increased by MEUR 17.9 (32.0%) to MEUR 73.9.Profit/loss for the period decreased by MEUR 0.8 (-18.2%) to MEUR 3.6.Basic and diluted earnings per share were EUR 0.02 (0.03).Cash flow from operating activities amounted to MEUR 119.5 (72.4).7,196 (7,476) rooms were contracted, 4,083 (5,039) rooms opened and 2,003 (4,195) rooms left the system.The Board of Directors proposes that no dividend is to be paid for the financial year 2018.Comments from the CEOFinancial results in line with the 5-year operating planOn a like-for-like basis, including hotels under renovation, revenue grew by 5.4% in the fourth quarter, which was slightly higher than in the full year 2018 (4.5%). This is in line with guidance provided in the Q3 report.As mentioned in our Q3 report, operating costs in Q4 were higher than in previous quarters – in line with the 5-year operating plan. Despite this, the EBITDA-margin was in line with Q4 2017. The margin for the full year of 10.8% is in line with the guidance.During the quarter 1,505 rooms were contracted, 950 rooms opened, and 1,399 rooms left the system.In a press release on January 25 this year, we announced our financial targets for 2019. Again, in line with the 5-year operating plan, we expect like-for-like revenue, including hotels under renovation, to increase by 4.5 – 5.0% and that we will reach an EBITDA-margin between 12.0 and 12.5%.On February 5, a consortium led by Jin Jiang International Holdings Co., Ltd., including SINO-CEE Fund, through Aplite Holdings AB, announced that they had acquired 94.1% of the shares and votes in Radisson Hospitality AB (publ). Since Aplite holds more than 90 percent of the shares in Radisson, Aplite intends to commence a squeeze-out procedure under the Swedish Companies Act to acquire also the remaining shares. Aplite also intends to request that the Board of Radisson applies for de-listing of Radisson’s shares from Nasdaq Stockholm.Federico J. González, President & CEOPresentation of the Q4 ResultsOn February 22, 2019 at 10:00 CET, a combined telephone conference and live webcast (in English) concerning the report will be presented by the President & CEO, Federico J. González and Deputy President & CFO, Knut Kleiven. To follow the webcast, please visit https://www.radissonhospitalityab.com/investors.To access the telephone conference, please dial:Confirmation code: 2609538. For a replay of the conference call please visit https://www.radissonhospitalityab.com/investors.Financial CalendarQ1 2019 results: April 30, 2019
AGM 2019: April 30, 2019
Q2 2019 results: July 26, 2019
Q3 2019 results: October 25, 2019
Annual General Meeting 2019The Annual General Meeting of Radisson Hospitality AB (publ) will take place on April 30, 2019 at 11.00 CET at the Radisson Blu Waterfront Hotel in Stockholm.For Further Information, ContactKnut Kleiven
Deputy President & CFO
Avenue du Bourget 44
B-1130 Brussels
Tel: +32 2 702 9200
About Radisson Hospitality AB (publ)Radisson Hospitality AB (publ) is focused on hotel management and operates the core brands Radisson Blu and Park Inn by Radisson, as well as Radisson RED, an upscale “lifestyle select” brand inspired by the millennial lifestyle, and Radisson Collection, a premium lifestyle collection of exceptional hotels located in unique locations. Radisson also holds 49% in prizeotel, a young hotel chain in the economy segment.The portfolio consists of 380 hotels, with 83,331 rooms, in operation and 114 hotels, with 23,827 rooms, under development in 79 countries across Europe, the Middle East and Africa.Radisson’s strategy is to grow with an asset-right approach, balancing management and franchise contracts with selected lease contracts. Management and franchise contracts offer a higher profit margin and more stable income streams and lease contracts allow Radisson to complete their presence in Mature markets.Radisson is a member of Radisson Hotel Group. For more information, visit www.radissonhospitalityab.com.This year-end report comprises information which Radisson Hospitality AB (publ) is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 07:30 CET on February 22, 2019.Stockholm, February 22, 2019The Board of DirectorsRadisson Hospitality AB (publ)The full report with tables can be downloaded from the following link:AttachmentRadisson Hospitality AB Year-end Report 2018.pdf

About the Author

Do NOT follow this link or you will be banned from the site! UA-49573635-2