Hotel Fast SSE (HOTEL) Q3 2024 earnings summary

Executive summary

• Net revenue increased by 35% year-over-year in Q3 2024, driven by strong performance in First Operations and Franchise segments.

• Franchise net sales rose 17% year-over-year, with 80% of website bookings from First Member loyalty members, up 15%.

• First Property reduced loan-to-value by 31% year-over-year, strengthening financial position.

• Cash flow from operations improved to 5.2 MSEK for the period, reflecting operational efficiency.

• The company remains optimistic about the Nordic hotel market and is focused on optimizing its portfolio and expanding in high-growth markets.

Financial highlights

• Q3 2024 net revenue: 24.9 MSEK (up 35% year-over-year); nine-month revenue: 69.3 MSEK (up 95%).

• Adjusted EBITDA for Q3: 2.0 MSEK; EBIT: 0.5 MSEK; net result: -6.5 MSEK.

• Cash flow from operations in Q3: -7.3 MSEK (improved from -15.0 MSEK year-over-year); free cash flow: -7.5 MSEK.

• Cash and equivalents at period end: 3.1 MSEK.

• Earnings per share (Q3): -0.10 SEK (vs. 0.71 SEK year-over-year).

Outlook and guidance

• Management expects continued positive development in the Nordic hotel market and is focused on optimizing existing portfolios and expanding in high-growth areas.

• Q4 and Q1 are historically weaker in occupancy and profitability.

• Strategic focus on high-standard hotels in attractive destinations to reach 110 hotels in the region.