SkiStar updates its financial targets and dividend policy

The mountain tourism company SkiStar AB (publ) has today updated its financial targets and dividend policy. The targets are being updated to reflect SkiStar’s strategic priorities and our aim of becoming the leading holiday organizer for Scandinavia all year round.

Updated mid-term financial targets
SkiStar’s Board of Directors has adopted the following financial targets:

• Growth: Operating income should increase on average by 6 percent annually over this period. This refers to organic growth adjusted for acquisitions and currency effects. An acquired company is classified as an acquisition during the initial twelve-month period after the acquisition date. Only after this period has passed is the company included in the calculation of organic growth.
• Margin: On average, the operating margin should be 18 percent. This updated target takes into account the changes to the accounting practises relating to mediated accommodation revenue that the company implemented in the second quarter of 2020/21. The previous margin target was to exceed 22 percent. The change to the margin target is fully explained by the accounting change. In addition, the company's operations have changed since the previous target was established, primarily in terms of hotel operations having a lower margin than the average.
• Debt structure: Interest-bearing net debt should be less than 2.5 x EBITDA, excluding IFRS 16 effects. Temporary deviations might occur, but must not exceed 2.5x over the period.

A more flexible dividend policy
The Board has further decided upon an updated dividend policy. The target is that 40-60 percent of the year's profit after tax should be distributed to the shareholders. The dividend level proposed by the Board will be adjusted annually, taking into account the company's strategy, financial position, risk level and investment needs.

"SkiStar has made major changes to the business over the past three years. Therefore, we have now updated our financial targets and adapted them to both the strategic and accounting technical changes we have made, so that it is easier to understand SkiStar, as well as making the targets more relevant for us going forward. The updated dividend policy gives us more flexibility to develop SkiStar and thus to create value for our shareholders.", says SkiStar CEO Stefan Sjöstrand.

About the changed accounting practises regarding mediated accommodation revenue
As from Q2 2020/21, all payments from SkiStar’s customers for accommodation are recognised as revenue and the Company’s payments to accommodation owners are recognised as an operating expense under the line ‘Goods for resale’. The Company previously reported the difference between revenue from rental activities and payments to accommodation owners as net commission income under revenue. In order to enable us to create a five-year history examining the effect of the changed accounting practises for accommodation revenue, the data for 2017/18 and 2018/19 is provided below. The recalculations for 2019/20 and 2020/21 are available in the interim report for the period September 2020-February 2021.

SEK million2017/18
reportedMediated accommodation2017/18
adjustedChange
(percentage unit)Operating income2,548+4953,043 Cost-1,937-495-2,432 Operating profit6110611 Operating margin24.0% 20.1%-3.9SEK million2017/18
reportedMediated accommodation2017/18
adjustedChange
(percentage unit)Operating income2,688+5273,215 Cost-2,084-5272,611 Operating profit6040604 Operating margin22.5% 18.8%-3.7

Capital markets day
Later today, 12 October 2023, in connection with its capital market day, SkiStar will present the company's updated financial targets and dividend policy as well as its strategic priorities.

This information is information that SkiStar AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 12 October 2023, 08.00 a.m. CET.

Further information can be reached from:

Stefan Sjöstrand, CEO, tel +46 (0)280 841 60.
Martin Almgren, CFO, tel +46 (0)280 841 60.

SkiStar in brief

The mountain tourism company SkiStar AB (publ) is listed on the Mid Cap list of the Nasdaq Stockholm exchange. The Group owns and operates alpine ski resorts in Sälen, Vemdalen, Åre and Hammarbybacken (Stockholm) in Sweden, and Hemsedal and Trysil in Norway. Our operations are divided into three segments: Operation of Ski Resorts, Property Development & Exploitation and Operation of Hotels. As the leading holiday organiser for Scandinavia, SkiStar’s business concept is to create memorable mountain experiences, develop sustainable destinations and offer accommodation, activities, products and services of the highest quality with our guests as our focus. For more information, see www.skistar.com/en/corporate.