January–June 2019
Second Quarter 2019
- Revenue increased by MEUR 8.2 (3.2%) to MEUR 261.9. The increase is mainly due to the good development in the like-for-like lease portfolio (MEUR 3.8) and new openings (MEUR 4.8). On a like-for-like basis, including hotels under renovation (“LFL&R”), Revenue increased by MEUR 5.3 (2.1%).
- Reported RevPAR for leased and managed hotels increased by 1.0% and RevPAR LFL&R decreased by 0.4%. The decrease is mainly due to ongoing renovations in a number of key hotels, as well as lack of special events in key destinations. Also, the timing of Easter has had a negative impact, most notable in the Nordics.
- EBITDA increased by MEUR 14.4 (35.6%) to MEUR 54.8 and the EBITDA margin increased 5.0 pp to 20.9%. The increase is mainly due to the implementation of the new accounting standard IFRS 16 Leases (MEUR 9.3) and strong development in the fee business.
- EBIT increased by MEUR 7.4 (27.3%) to MEUR 34.5, where of MEUR 3.2 is due to the implementation of IFRS 16 Leases. The EBIT margin was 13.2% (10.7).
- Profit/loss for the period decreased by MEUR 2.3 (–11.2%) to MEUR 18.2.
- Basic and diluted earnings per share were EUR 0.11 (0.12).
- 2,857 (1,268) rooms were contracted, 926 (271) rooms opened and 272 (0) rooms left the system.
Half Year 2019
- Revenue increased by MEUR 15.4 (3.3%) to MEUR 475.3. Revenue LFL&R increased by MEUR 12.7 (2.8%).
- Reported RevPAR for leased and managed hotels increased by 1.7% and RevPAR LFL&R increased by 0.8%.
- EBITDA increased by MEUR 33.6 (72.3%) to MEUR 80.1 and the EBITDA margin increased 6.7 pp to 16.8%.
- EBIT increased by MEUR 18.6 (83.4%) to MEUR 40.9 and the EBIT margin increased 3.8 pp to 8.6%.
- Profit/loss for the period decreased by MEUR 0.7 (–4.5%) to MEUR 14.8.
- Basic and diluted earnings per share were EUR 0.09 (0.09).
- Cash flow from operating activities amounted to MEUR 41.4 (32.9).
- 6,734 (3,306) rooms were contracted, 2,214 (1,966) rooms opened and 1,321 (473) rooms left the system.
| MEUR | Q2 2019 | Q2 2018 | Change | % | H1 2019 | H1 2018 | Change | % | |
| Revenue | 261.9 | 253.7 | 8.2 | 3.2% | 475.3 | 459.9 | 15.4 | 3.3% | |
| EBITDA | 54.8 | 40.4 | 14.4 | 35.6% | 80.1 | 46.5 | 33.6 | 72.3% | |
| EBITDA margin | 20.9% | 15.9% | 5.0 pp | 16.8% | 10.1% | 6.7 pp | |||
| EBIT | 34.5 | 27.1 | 7.4 | 27.3% | 40.9 | 22.3 | 18.6 | 83.4% | |
| EBIT margin | 13.2% | 10.7% | 2.5 pp | 8.6% | 4.8% | 3.8 pp | |||
| Profit/loss for the period | 18.2 | 20.5 | –2.3 | –11.2% | 14.8 | 15.5 | –0.7 | –4.5% | |
| Adjusted EBITDA | 46.2 | 40.6 | 5.6 | 13.8% | 58.1 | 46.7 | 11.4 | 24.4% | |
| Adjusted EBITDA margin | 17.6% | 16.0% | 1.6 pp | 12.2% | 10.2% | 2.0 pp | |||
| Adjusted EBIT | 34.0 | 28.4 | 5.6 | 19.7% | 34.2 | 23.7 | 10.5 | 44.3% | |
| Adjusted EBIT margin | 13.0% | 11.2% | 1.8 pp | 7.2% | 5.2% | 2.0 pp | |||
| Adjusted Profit/loss for the period | 21.5 | 21.5 | 0.0 | N/A | 16.7 | 16.6 | 0.1 | 0.6% |
Comments from the CEO
Q2 2019 was an excellent quarter, with strong EBITDA growth, even after normalisation of the positive impact from IFRS 16, and above the 5-year operating plan
More in detail, in the quarter we achieved an EBITDA of MEUR 54.8 (an increase of 35.6% and 5.0 pp margin improvement). This is mainly explained by the adoption in 2019 of IFRS 16. Nevertheless, the normalised EBITDA still shows a very strong flow-through with a 13.8% growth and 1.6 pp margin improvement. Quarter revenues show a 3.2% growth, with excellent contribution from like-for-like room revenues (like-for-like RevPAR at 2.6% on leased hotels) and strong support from new openings in the fee business.
During the semester we made significant progress in all operational areas and company initiatives (strong like-for-like growth in the leased portfolio, new openings in the fee business, brands & experience, revenue management & pricing and repositioning). Future growth will rely on very strong support from new signings, double than previous year, at 6,734 new rooms, mainly in the fee business.
For the year we expect top-line growth in line with the 5-year operating plan, while creating value on EBITDA with operational scale and margins increase year on year.
Presentation of the Q2 Results
On July 29, 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: 4689049. For a replay of the conference call please visit https://www.radissonhospitalityab.com/investors.
Financial Calendar
Q3 2019 results: October 25, 2019
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 384 hotels, with 84,124 rooms, in operation and 128 hotels, with 26,851 rooms, under development in 81 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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