SkiStar AB Reports Strong Winter Season Preparations Ahead

SkiStar AB Year-End Report Insights

As the mountain resorts gear up for the busy winter season, SkiStar AB reflects on a year marked by both challenges and accomplishments. The company, known for providing memorable mountain experiences, prepares to welcome guests as winter approaches.

Fourth Quarter Performance Overview

This quarter saw net sales decline by SEK 113 million, equating to a 33 percent drop, bringing total sales to SEK 226 million. Operating profit also fell, down SEK 31 million, resulting in a loss of SEK 310 million for the quarter. Despite these decreases, there were capital gains from operations amounting to SEK 1 million, demonstrating some resilience in the underlying business.

Interestingly, cash flow from operational activities improved, with an increase of SEK 85 million. This adjustment resulted in a cash flow from operations of SEK -149 million. Basic and diluted earnings per share were also slightly better, showing an increase of 4 percent to SEK -3.35.

Annual Results and Strategic Developments

Looking at the full year, SkiStar reported a modest decrease in net sales of SEK 48 million, or 1 percent, totaling SEK 4,631 million. However, operating profit for the year had a positive twist, increasing by SEK 45 million or 6 percent, reaching a total of SEK 785 million. This indicates a strong management of operational costs amid fluctuating revenues.

Furthermore, the company saw capital gains from operations of SEK 51 million, while cash flow from operational activities rose by SEK 24 million to SEK 1,108 million. Basic and diluted earnings per share climbed to SEK 7.05, a notable increase of 17 percent compared to the previous year.

Future Prospects and Winter Season Preparation

Significantly, the Board has proposed a dividend of SEK 3.00 per share, amounting to a total of SEK 235 million. This represents 43 percent of the Group's profit after tax, highlighting the company's commitment to returning value to its shareholders despite the challenges faced.

As SkiStar approaches the winter season, demand for mountain holidays remains stable, with booking volumes reflecting a healthy start to the season. Approximately 85 percent of the accommodation offered through SkiStar is already booked for the peak holiday weeks. This suggests a promising advance into what is traditionally the busiest period for mountain resorts.

CEO’s Perspective

CEO Stefan Sjöstrand expressed optimism about the upcoming winter season, stating, "The good operating profit and improved margins in the financial year, together with a stable booking volume, mean that we are well prepared for the coming winter season." This sentiment echoes the broader anticipation within the market for an enriching winter experience at SkiStar resorts.

Upcoming Conference and Information Sharing

In light of recent developments, SkiStar will hold a conference call and web presentation. Participants are invited to join the call on a designated date, with the opportunity to engage directly with the company's leadership. The information will be accessible via a live web cast, allowing investors and stakeholders to follow along and ask questions regarding the company’s performance and outlook.

About SkiStar AB

SkiStar AB is publicly listed on the Mid Cap list of the Nasdaq Stockholm exchange and operates renowned mountain destinations in Sweden and Norway. Its diverse operations include mountain resort management, property development, and hotel operations. As a leading holiday operator in Scandinavia, SkiStar aims to create unforgettable mountain experiences and uphold sustainability across all its ventures.

Frequently Asked Questions

What is the current state of SkiStar's financial performance?

SkiStar reported a decline in net sales for the fourth quarter but showed increased operating profit for the full year, reflecting resilience in its operations.

How is the booking volume for the upcoming winter season?

Booking volumes are strong, with around 85 percent of accommodations already booked for the peak holiday season, indicating robust demand for mountain holidays.

What dividend has been proposed by the Board?

The Board has proposed a dividend of SEK 3.00 per share, summing to SEK 235 million, which reflects a strong commitment to shareholder returns.

Who can I contact for more information about SkiStar?

For further information, please contact Stefan Sjöstrand, CEO, or Sara J Uggelberg, CFO, both reachable at +46 (0)280 841 60.

What is SkiStar's business model?

SkiStar focuses on providing memorable vacation experiences while ensuring sustainable practices across its mountain resorts and related operations.

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