Radisson Hospitality AB’s Q3 2019 report



Third Quarter 2019


Revenue increased by MEUR 8.5 (3.4%) to MEUR 261.8. The increase is mainly due to the good like-for-like development and new openings. On a like-for-like basis, including hotels under renovation (“LFL&R”), Revenue increased as well by MEUR 8.5 (3.4%).


Reported RevPAR for leased and managed hotels increased by 3.4% and RevPAR LFL&R increased by 2.3%. The positive performance is driven both by the leased and the managed portfolio and particularly by the ramp up of hotels which were under renovation 2018 (5.5%).


EBITDA increased by MEUR 18.7 (46.5%) to MEUR 58.9 and the EBITDA margin increased 6.6 pp to 22.5%. The increase is mainly due to the implementation of the new accounting standard IFRS 16 Leases (MEUR 11.4) and lower net costs in central activities.


EBIT increased by MEUR 18.7 (94.4%) to MEUR 38.5, where of MEUR 4.7 is due to the implementation of IFRS 16 Leases. In addition, costs for write-downs were MEUR 7.0 lower than last year.


The EBIT margin was 14.7% (7.8).


Profit/loss for the period increased by MEUR 12.3 (135.2%) to MEUR 21.4.2,660 (2,385) rooms were contracted, 1,064 (1,167) rooms opened and 83 (131) rooms left the system.


Nine months ended September 2019


Revenue increased by MEUR 23.9 (3.4%) to MEUR 737.1. Revenue LFL&R increased by MEUR 21.3 (3.0%).


Reported RevPAR for leased and managed hotels increased by 2.2% and RevPAR LFL&R increased by 1.8%.


EBITDA increased by MEUR 52.3 (60.3%) to MEUR 139.0 and the EBITDA margin increased 6.7 pp to 18.9%.


EBIT increased by MEUR 37.3 (88.6%) to MEUR 79.4 and the EBIT margin increased 4.9 pp to 10.8%.


Profit/loss for the period increased by MEUR 11.6 (47.2%) to MEUR 36.2.


Cash flow from operating activities amounted to MEUR 94.9 (81.6).9,394 (5,691) rooms were contracted, 3,278 (3,133) rooms opened and 1,404 (604) rooms left the system.


MEUR Q3 2019Q3 2018Change%Jan-Sep 2019 Jan-Sep 2018 Change%Revenue 261.8253.38.53.4%737.1713.223.93.4%EBITDA 58.940.218.746.5%139.086.752.360.3%EBITDA margin 22.5%15.9%6.6 pp 18.9%12.2%6.7 pp EBIT 38.519.818.794.4%79.442.137.388.6%EBIT margin 14.7%7.8%6.9 pp 10.8%5.9%4.9 pp Profit/loss for the period 21.49.112.3135.2%36.224.611.647.2%Adjusted EBITDA 49.240.88.420.6%107.387.519.822.6%Adjusted EBITDA margin 18.8%16.1%2.7 pp 14.6%12.3%2.3 pp Adjusted EBIT 37.029.08.027.6%71.252.718.535.1%Adjusted EBIT margin 14.1%11.4%2.7 pp 9.7%7.4%2.3 pp Adjusted Profit/loss for the period 23.615.97.748.4%40.332.57.824.0%


Comments from the CEO


Q3 2019 was another good quarter with strong EBITDA growth

More in detail, in the quarter we achieved an EBITDA of MEUR 58.9 (an increase of 46.5% and with 6.6 pp margin improvement).


This is partly explained by the implementation of the new accounting standard for leases (IFRS 16), but nevertheless, the adjusted EBITDA increased 20.6% and the adjusted margin improved 2.7 pp.


The quarter revenues show a 3.4% growth, with strong support from new openings and ramp-up of 2018 renovations.


During the quarter we continued the very important and intensive work on the five year plan initiatives in all operational areas, building for future growth.


The growth of the company is also relying on new signings and I am very pleased with the signing of close to 9,400 rooms year-to-date, which is well ahead of plan and now targets to over achieve the record threshold of 10,000 in the year.


In the beginning of October we exercise our rights to acquire full ownership in prizeotel. The prizeotel team has done a fantastic job over the past few years growing the pipeline to four hotels in operation and 16 under development in strategic German-speaking countries.

Federico J. González, President & CEO


Presentation of the Q3 Results


On November 6, 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 CFO, Sergio Amodeo. To follow the webcast, please visit https://www.radissonhospitalityab.com/investors.


To access the telephone conference, please dial:


Belgium, Local                    +32 (0)2 400 98 74 Belgium, Free                      0800 48740 France, Local:                      +33 (0)176 700 794 France, Free:                       0805 103 028 Norway, Local:                     +47 2396 0264 Norway, Free:                      800 51874 Sweden, Local:                    +46 (0)8 506 921 80 Sweden, Free:                     0200 125 581 UK, Local:                             +44 (0)844 571 88 92 UK, Free:                              0800 376 79 22 USA, Local:                          +1 163 151 074 95 USA, Free:                            1 866 966 13 96 Standard international       +44 (0)207 192 80 00


Confirmation code: 9197318. For a replay of the conference call please visit https://www.radissonhospitalityab.com/investors.


Financial Calendar

Q4 2019 results: February 25, 2020

For Further Information, Contact

Sergio Amodeo CFO sergio.amodeo@radissonhotels.com

Avenue du Bourget 44 B-1130 Brussels Belgium Tel: +32 2 702 9200

Website: www.radissonhospitalityab.com


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 387 hotels, with 85,101 rooms, in operation and 126 hotels, with 25,066 rooms, under development in 80 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.

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