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Scandic Hotels reported a 3.5% year-on-year increase in second-quarter net sales to SEK 6 billion but fell short of market expectations of SEK 6.08 billion. The Nordic hotel operator also posted adjusted EBITDA below analyst estimates, although adjusted earnings per share improved to SEK 2.01 from SEK 1.69 a year earlier. Performance was supported by strong leisure travel, a busy events calendar and stable meetings and conference demand, while a slower-than-expected recovery in Finland continued to weigh on results. The company expects occupancy levels in the third quarter to remain broadly in line with last year, with higher average room rates and second-half performance comparable with 2025.
Scandic Hotels reported a modest increase in second-quarter revenue but missed market expectations as a slower-than-anticipated recovery in Finland offset stronger performance across other Nordic markets. The Swedish hotel operator posted net sales of SEK 6 billion for the quarter, representing a 3.5% increase from the corresponding period last year but below the analyst consensus estimate of SEK 6.08 billion.
The company also reported adjusted EBITDA of SEK 796 million, falling short of analysts' expectation of SEK 862 million. Despite the weaker operating performance, adjusted earnings per share increased to SEK 2.01 from SEK 1.69 recorded in the second quarter of the previous year.
Scandic attributed its performance to continued strength in leisure travel and a busy calendar of sporting, cultural and entertainment events, which supported occupancy across several markets. Demand for meetings and conferences also remained stable, particularly in Nordic capital cities, contributing to revenue growth during the quarter.
The company said the recovery in Finland continued to lag expectations, limiting overall performance across the group's portfolio. While market conditions have improved compared with previous periods, management indicated that demand in Finland remained weaker than anticipated and continued to weigh on financial results.
Operations in Norway were also affected during the quarter by an extended hotel workers' strike. However, Scandic said the impact on earnings was largely contained through operational efficiencies and compensation linked to the industrial action.
Alongside its quarterly results, the company confirmed that it had secured SEK 7.5 billion in long-term financing to support its planned acquisition of Irish hotel operator Dalata Hotel Group. The financing is expected to provide the capital required to complete the transaction while supporting the group's longer-term growth strategy.
Looking ahead, Scandic expects occupancy during the third quarter to remain broadly in line with the corresponding period last year, while average room rates are projected to increase. The company also anticipates that revenue and profitability during the second half of 2026 will remain broadly comparable with the previous year.
Management said it expects conditions in Finland to improve gradually from current levels, although no specific timeline for a full market recovery was provided.
According to analyst data compiled by LSEG, the average recommendation on Scandic shares remains "hold", with analyst opinions divided between positive, neutral and negative ratings. The consensus 12-month price target stands at SEK 95 per share, compared with the stock's closing price of SEK 86.50 on 14 July. The shares are currently trading at approximately 12 times forecast earnings over the next 12 months, broadly unchanged from valuation levels seen three months ago.
Source - Reuters
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