Third Quarter 2016
Nine months ended September 2016
|MEUR||Q3 2016||Q3 2015||Jan-Sep 2016||Jan-Sep 2015|
|Profit for the period||14.9||17.9||9.5||19.9|
|EBITDA margin, %||11.5||13.7||7.8||9.3|
|EBIT margin, %||6.5||9.3||1.9||4.7|
Comments from the CEO
Fragile trading environment in some key markets impacted results, but cost restructuring and exit of loss-making hotels will support future profitability improvement
Market conditions continue to be fragile, especially in France and Belgium where the terrorist attacks are still affecting trading, with results in Brussels, Paris and Nice negatively impacting EBIT for the quarter by €4.4m. Also Turkey and Saudi Arabia continue to suffer from unrest and the depressed oil price. We are carefully monitoring these countries and are concentrating on operational efficiency.
In response to the ongoing challenges in some key markets, we have launched a cost containment plan targeting a total saving of €10m. Our focus is on central cost reductions as well as on a further increase of procurement efficiencies which leads to restructuring costs of ca €5m, of which €4m are accounted for in the third quarter.
It is encouraging to see that after a strong summer in Scandinavia the stressed market in Norway shows signs of recovery, while Denmark and Sweden continue to perform well. In Norway, we have further optimised our leased portfolio and exited three lease agreements at a cost of €11.7m (accrued for in previous quarters), but creating an annual positive EBIT of ca €4m as from September 2016. Two of the agreements have been converted to franchise contracts.
We continue to make solid progress in pursuit of our long-term strategy and sustainable network growth, while adapting to external factors. Management is focussed on vigilant cost containment and further margin enhancing inititiaves to drive profitability.
Wolfgang M. Neumann, President & CEO
Presentation of the Q3 Results
On October 25, 2016 at 10:00 (Central European Time) a combined telephone conference and live webcast (in English) concerning the report will be presented by the President & CEO, Wolfgang M. Neumann and Deputy President & CFO, Knut Kleiven. To follow the webcast, please visit www.investor.rezidor.com .
To access the telephone conference, please dial:
|Belgium, Local||+32 2 404 0660|
|Belgium, Free||0800 58032|
|Sweden, Local:||+46 8 5033 6538|
|Sweden, Free:||0200 883 440|
|UK, Local:||+44 20 3427 1918|
|UK, Free:||0800 279 4841|
|USA, Local:||+1 646 254 3360|
|USA, Free:||1877 280 1254|
|France, Local:||+33 1 76 77 22 27|
|France, Free:||0805 631 579|
Confirmation code: 3927067. For a replay of the conference call please visit www.investor.rezidor.com .
Q4 2016 results: February 10, 2017
Annual Report 2016: March 24, 2017
Q1 2017 results: April 28, 2017
AGM 2017: April 28, 2017
For Further Information, Contact
Deputy President & CFO
Tel: +32 2 702 9244
Fax: +32 2 702 9330
Business Development Strategy & Investor Relations
Tel: +32 2 702 9237
The Rezidor Hotel Group Corporate Office
Avenue du Bourget 44
Tel: +32 2 702 9200
Fax: +32 2 702 9300
About the Rezidor Hotel Group
The Rezidor Hotel Group is focused on hotel management and operates the core brands Radisson Blu and Park Inn by Radisson. In 2014, Rezidor announced together with Carlson the launch of two additional brands; Radisson RED, an upscale "lifestyle select" brand inspired by the millennial lifestyle, and Quorvus Collection, a new generation of distinctive five star hotels. Rezidor also holds 49% in prizeotel, a young hotel chain in the economy segment.
The portfolio consists of 474 hotels with over 103,000 rooms in operation and under development in 82 countries across Europe, the Middle East and Africa.
Rezidor's strategy is to grow with management and franchise contracts and only selectively with leases. The strategy is also to further expand in the emerging markets.
Rezidor is a member of the Carlson Rezidor Hotel Group. For more information, visit www.rezidor.com .
The full report with tables can be downloaded from the following link: