Radisson Hospitality AB’s Q2 2020 Report
Second Quarter 2020
- Revenue decreased by MEUR 234.0 (–89.3%) to MEUR 27.9, due to the negative impact of the COVID-19 outbreak. A majority of the hotels were closed during the quarter and gradually started to reopen in June. The hotels that were kept open operated with a low occupancy in general. On a like-for-like basis, including hotels under renovation (“LFL&R”), Revenue decreased by MEUR 225.0 (–88.9%).
- Reported RevPAR for leased and managed hotels decreased by 89.7%. RevPAR LFL&R decreased by 89.4%.
- EBITDA decreased by MEUR 104.7 to MEUR –50.3 and the EBITDA margin was –180.3% (20.8%). The results were severely impacted by the decrease in revenue. However, the decline was slowed down due to the flexible cost base and the measures taken.
- EBIT decreased by MEUR 107.4 to MEUR –72.0. In addition to the EBITDA decrease, results are impacted by costs for depreciation of the new IT platform and investments in the leased properties in 2019. The EBIT margin was –258.1% (13.5%).
- Profit/loss for the period decreased by MEUR 82.2 to MEUR –63.3.
- 1,943 (2,857) rooms were contracted, 323 (926) rooms opened and 175 (272) rooms left the system.
Half Year 2020
- Revenue decreased by MEUR 276.8 (–58.2%) to MEUR 198.5. Revenue LFL&R decreased by MEUR 266.6 (–57.9%).
- Reported RevPAR for leased and managed hotels decreased by 58.1%. RevPAR LFL&R decreased by 58.4%.
- EBITDA decreased by MEUR 135.2 to MEUR –55.6 and the EBITDA margin was –28.0% (16.7%).
- EBIT decreased by MEUR 141.9 to MEUR –99.4 and the EBIT margin was –50.1% (8.9%).
- Profit/loss for the period decreased by MEUR 108.4 to MEUR –92.5.
- Cash flow from operating activities amounted to MEUR –21.3 (40.9).
- 5,514 (6,734) rooms were contracted, 775 (2,214) rooms opened and 175 (1,321) rooms left the system.
|MEUR||Q2 2020||Q2 2019||Change||%||H1 2020||H1 2019||Change||%|
|Profit/loss for the period||–63.3||18.9||–82.2||N/A||–92.5||15.9||–108.4||N/A|
Comments from the CEO
AFTER A DIFFICULT H1 DUE TO COVID-19, WE START TO SEE A GRADUAL RECOVERY AS FROM JUNE WHICH IS EXPECTED TO CONTINUE THROUGHOUT THE YEAR. OUR SHAREHOLDERS’ HAVE SUPPORTED WITH A SOLID FINANCING PLAN
The outbreak of COVID-19 has had a significant impact on Radisson’s performance as from end of February 2020. A majority of the hotels have been closed during this period, but we have gradually started to reopen as from June. 93 hotels out of 392 were still closed per end of June, but a majority of those are expected to reopen in July and August.
Management has taken several measures to mitigate the financial impact, on both profit and cash flow, of the significant drop in revenue. These measures include, but are not limited to, furloughs, rent renegotiations and deferrals, application for governmental subsidies and loans, and postponement of non-strategic capex investments. The Group is helped by a flexible cost model, which shows an immediate capability to reduce costs. Starting in June, we have seen a gradual and consistent recovery, with a RevPAR increase that is expected to continue in the coming months.
Management has taken advantage of the low activity period to push forward strategic repositioning and development projects.
Radisson’s shareholders have reacted by supporting with a MEUR 100 cash injection in the form of a subordinated loan. A global financing plan has been finalised to cover medium- and long-term cash needs until the expected end of the crisis. With this cash injection and the ability to raise further funding, to the extent needed, Radisson can cover its liquidity needs.
Federico J. González, President & CEO
Presentation of the Q2 Results
On July 24, 2020 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 93 38 47
Belgium, Free: 0800 48741
Canada, Free: 1 866 925 0818
France, Local: +33 (0)1 70 70 07 81
France, Free: 0805 101 465
Norway, Local: +47 2156 3015
Norway, Free: 800 568 65
Spain, Local: +34 914 143 675
Spain, Free: 900 828 480
Sweden, Local: +46 (0)8 566 184 67
Sweden, Free: 0200 125 160
UK, Local: +44 (0)844 481 9752
UK, Free: 0800 279 6619
USA, Local: +1 646 741 3167
USA, Free: 1 646 741 3167
Standard international +44 (0)207 192 8338
Confirmation code: 4874225. For a replay of the conference call please visit https://www.radissonhospitalityab.com/investors.
Q3 2020 results: November 27, 2020
For Further Information, Contact
Radisson Hospitality AB is focused on hotel management and operates the core brands Radisson Blu and Park Inn by Radisson, as well as Radisson RED, Radisson and Radisson Collection.
The portfolio consists of 392 hotels, with 85,390 rooms, in operation and 141 hotels, with 28,453 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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