SkiStar Q3 revenue falls 6% on warm weather, late Easter; nine-month profit up

Investing.com -- SkiStar (ST:SKISb) on Thursday reported a 6% drop in third-quarter revenue as mild weather and a late Easter holiday reduced SkiPass and accommodation sales.

Net sales for the quarter ended May 31 fell to SEK 1.41 billion from SEK 1.49 billion a year earlier.

Operating profit declined 10% to SEK 377 million from SEK 418 million.  “Operating profit in the quarter was adversely affected by the late Easter and very mild weather, which created challenges for all our destinations,” said chief executive Stefan Sjöstrand in a statement.

The snow guarantee was activated at Sälen, Trysil and Vemdalen, though its financial effect was limited.

For the first nine months of the fiscal year, net sales rose 2% to SEK 4.41 billion from SEK 4.34 billion. 

Operating profit increased 7% to SEK 1.10 billion, up from SEK 1.02 billion. Profit after tax totaled SEK 814 million, compared to SEK 746 million, a 9% increase.

Skier days reached just over 6 million for the winter season, down 1.6% from the prior year. 

International guest numbers were at a record high. Sporting goods store sales, including online and ski hire, rose 6% to SEK 658 million, with SkiStar’s EQPE brand up approximately 33%.

Hotel segment revenue in the third quarter was SEK 166 million, up from SEK 162 million. 

Operating profit decreased 35% to SEK 19 million. Accommodation revenue declined by SEK 5 million, while restaurant sales increased by SEK 7 million, aided by new venues in Sälen. 

External hotel expenses rose to SEK 8 million. SkiStar acquired Topeja AB in May, taking over hotel operations at Högfjällshotellet in Sälen.

In property development and exploitation, third-quarter net sales rose to SEK 39 million from SEK 30 million. 

Capital gains from property transactions contributed SEK 31 million, compared to a SEK 4 million loss a year earlier. Operating profit in this segment increased to SEK 31 million from a SEK 9 million loss.

The company reported SEK 1.26 billion in cash flow from operating activities for the first nine months, down from SEK 1.32 billion. 

Investments during the period totaled SEK 373 million, compared with SEK 553 million. 

Net financial items improved to SEK -73 million from SEK -87 million. Interest-bearing net debt excluding IFRS 16 fell to SEK 1,328 million from SEK 1,678 million.

SkiStar concluded a refinancing deal with DNB, Handelsbanken and Nordea, adding SEK 700 million in credit, bringing total loans and facilities to SEK 2.80 billion, linked to sustainability performance.

The company reported a 12% year-to-date reduction in emissions. About 30% of guests used electric or hybrid vehicles. 

New partnerships with SJ and Snälltåget aimed to promote train travel to reduce carbon footprints. 

Booking (NASDAQ:BKNG) volumes for the 2025/26 winter season are up 1% year-over-year, with 30% of expected capacity already booked.

Planned developments include a gondola lift in Trysil, a new ski area in Vemdalen, and a lift with lighting in Åre/Björnen, all set for completion by Christmas 2025. 

New international flight routes include EasyJet flights from London and Manchester to Sälen, and TUI (LON:TUIT) services from Germany and Belgium.