Radisson publishes like-for-like revenue increase and EBITDA margin for 2018 and forecast for 2019 and impact of IFRS 16
In line with Radisson Hospitality AB (publ)’s (the “Company” or “Radisson”) guidance provided in the Interim Report for January-September 2018, the like-for-like revenue, including hotels under renovation, has increased by 4.5% in 2018 compared to 2017. The EBITDA margin for the full year 2018 was 10.8%, which is also in line with the provided guidance.
In line with Radisson’s 5-year operating plan which has previously been communicated, Radisson expects like-for-like revenue, including hotels under renovation, to grow between 4.5 and 5.0% in 2019, with an EBITDA margin between 12.0 and 12.5%, excluding any impact of the implementation of the new accounting standard IFRS 16 Leases.
The IASB and the Financial Accounting Standards Board issued in January 2016 the IFRS 16 Leases to replace the IFRS 17 standard, which imposes significant changes to current lease accounting practice. The introduction of the new accounting standard IFRS 16 Leases is estimated to have an impact on recognised lease liabilities of €400–450m per January 1, 2019. Earnings before tax is estimated to be negatively impacted by between €15m and €20m in 2019, based on the current portfolio of lease contracts. Additional details regarding the impact of the new lease standard will be provided in the Year-End Report for 2018.
Please note that the information above is subject to review by Radisson’s auditor.
Radisson’s Year-End Report for 2018 is scheduled to be published on 22 February 2019.
Mandatory public offer
On 11 December 2018, a consortium led by Jin Jiang International Holdings Co., Ltd., including SINO-CEE Fund, through the joint acquisition vehicle Aplite Holdings AB (the “Consortium”), announced a mandatory public offer which, on 4 January 2019, was increased to a total of SEK 42.50 in cash per share (the “Offer”). On 14 January 2019, the independent committee of the Board of Directors of Radisson (the “Committee”) announced its statement regarding the increased Offer. The Committee notes that the acceptance period in the Offer will expire on 4 February 2019.
The Committee has resolved to disclose the information set out above following a request from a minority shareholder to provide information regarding the Company’s position. The information is disclosed to procure that the shareholders have further information when assessing the merits of the Offer. The Committee is of the opinion that the information in this press release is in line with what has previously been communicated.
Statements in this press release relating to future status or circumstances, including statements regarding future performance, growth and other trend projections, are forward–looking statements.
As regards any forward-looking statement above, it should be noted that they are based on Radisson’s 5-year operating plan, including that it continues to be implemented and executed without significant delays and/or underachievement, and budget. Both the 5-year operating plan and the budget could be subject to change. The Committee does not have sufficient information regarding the Consortium’s strategic plans for the Company to fully analyse the Offer’s consequences for the Company and its shareholders. The Committee does however not have any reason to doubt the veracity of the public statements made by the Consortium, nor does it have any reason to believe that the Consortium would pursue an alternative approach to managing the Company inferior to the 5-year operating Plan.
Forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of Radisson. Any such forward-looking statements speak only as of the date on which they are made and Radisson has no obligation (and undertakes no such obligation) to update or revise any of them, whether as a result of new information, future events or otherwise, except as required by Nasdaq Stockholm’s Rule book for Issuers or other applicable laws and regulations.
Investor Relations Contacts:
ANDREAS SCHMID, Member of the Board of Directors and chair of the Independent Committee
KNUT KLEIVEN, Deputy President & CFO
This information was submitted for publication, through the agency of the contact persons set out above, at 7.30am CET on 25 January 2019.