Fourth Quarter 2016
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Like-for-like ("L/L") RevPAR for leased and managed hotels was up by 2.4%. The growth is mainly due to an increase in occupancy.
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Revenue decreased by 4.8% to MEUR 243.1 (255.4). The positive impact of the like-for-like RevPAR development has been offset by the exit of four leases, the temporary closure of one leased hotel for renovation and the strengthening of the Euro. In addition, one-off fee revenue related to terminated and renegotiated agreements was MEUR 4.0 higher last year. On a L/L basis revenue increased by 4.3%.
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EBITDA amounted to MEUR 23.1 (32.5) and the EBITDA margin decreased to 9.5% (12.7). In addition to the decrease in revenue, EBITDA is negatively impacted by higher costs for sales & marketing and bad debts. Also, last year`s numbers were positively impacted by the revaluation of the investment in Beijing of MEUR 2.8.
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EBIT amounted to MEUR -10.3 (22.3) and the EBIT margin decreased to -4.2% (8.7). EBIT is negatively impacted by termination costs of MEUR 18.3 (1.1), due to the strategic exit of six hotel leases in the UK, and higher costs for depreciation and write downs of fixed assets of MEUR 4.5.
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Profit for the period amounted to MEUR 16.9 (14.3), positively impacted by the capitalisation of tax assets of MEUR 22.3 (net).
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Basic and diluted earnings per share were EUR 0.10 (0.08).
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1,789 (865) rooms were contracted, 907 (1,375) rooms opened and 408 (981) rooms left the system.
Twelve months ended December 2016
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L/L RevPAR for leased and managed hotels was up by 3.2%.
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Revenue decreased by 3.6% to MEUR 961.2 (997.0). On a L/L basis revenue increased by 3.8%.
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EBITDA amounted to MEUR 79.3 (101.1) and the EBITDA margin decreased to 8.3% (10.1).
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EBIT amounted to MEUR 3.0 (57.3) and the EBIT margin decreased to 0.3% (5.7).
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Profit for the period amounted to MEUR 26.4 (34.2).
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Basic and diluted earnings per share were EUR 0.15 (0.20).
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Cash flow from operating activities amounted to MEUR 34.2 (85.8).
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8,200 (7,936) rooms were contracted, 3,585 (4,152) rooms opened and 1,655 (2,133) rooms left the system.
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The Board of Directors proposes, in line with the dividend policy, a dividend of EUR 0.05 (0.07) per share.
| MEUR | Q4 2016 | Q4 2015 | FY 2016 | FY 2015 |
| Revenue | 243.1 | 255.4 | 961.2 | 997.0 |
| EBITDA | 23.1 | 32.5 | 79.3 | 101.1 |
| EBIT | -10.3 | 22.3 | 3.0 | 57.3 |
| Profit for the period | 16.9 | 14.3 | 26.4 | 34.2 |
| EBITDA margin, % | 9.5 | 12.7 | 8.3 | 10.1 |
| EBIT margin, % | -4.2 | 8.7 | 0.3 | 5.7 |
Comments from the CEO
Further asset management transactions and sustainable tax strategy lay foundation for profitability improvements
2016 was a turbulent year for the hospitality industry and our company, and Q4 was no different. L/L Revenue increased by 3.8% in 2016 and 4.3% in the quarter with many markets trading at new peak levels. However, increased volatility related to terrorist attacks and the lower oil price negatively affected some key countries. While we continued to gain market share for the fifth consecutive year, results have been impacted by these external factors.