SkiStar AB: Navigating Economic Headwinds with Stable Demand

SkiStar AB, a leading holiday tour operator for Scandinavia, has released its interim report for the period September 2024 to November 2024, highlighting the company's resilience in the face of economic headwinds. Despite a weaker economy, SkiStar AB has maintained a stable demand for mountain holidays, demonstrating the enduring appeal of its offerings.

The company's net sales for the first quarter decreased by SEK -8 million (-3%), reaching SEK 212 million (220). Operating profit/loss for the same period decreased by SEK -17 million (-4%), amounting to SEK -482 million (-464). Capital gains from exploitation operations were included with SEK 1 million (0), while cash flow from operating activities increased by SEK 62 million to SEK 283 million (221). Basic and diluted earnings per share amounted to SEK -5.26 (-4.89), a decrease of -8%.



SkiStar AB's stable demand for mountain holidays has been a key factor in its ability to navigate economic challenges. The company's booking situation, measured as the number of overnight stays booked through SkiStar, remained at -3 percent compared to the same time last year. This stability, coupled with the company's efficient management of its mountain resorts, property development, and hotel operations, has contributed to its consistent growth and improved operational efficiency.



The company's dividend payout of SEK 2.80 per share, representing 46% of the Group's profit after tax, reflects its commitment to returning value to shareholders. This consistent dividend policy, coupled with stable demand, contributes to SkiStar AB's shareholder value by providing a reliable income stream and maintaining investor confidence in the company's long-term prospects.

SkiStar AB's operational efficiency has improved significantly, as evidenced by the increased cash flow from operating activities. Between September 2023 and May 2024, cash flow increased by SEK 62 million to SEK 283 million (221). This improvement can be attributed to the company's stable demand for mountain holidays and efficient management of its business segments, particularly Operation of Mountain Resorts and Property Development & Exploitation.



Cost-cutting measures and revenue-enhancing strategies have played a crucial role in SkiStar AB's increased cash flow. The company's net sales decreased by SEK -8 million (-3%), but operating profit/loss decreased by a lesser amount, SEK -17 million (-4%), indicating improved profitability. Capital gains from exploitation operations were included with SEK 1 million (0), contributing to the increased cash flow. Basic and diluted earnings per share amounted to SEK -5.26 (-4.89), a decrease of -8%, reflecting the company's focus on cost management and revenue growth.

In conclusion, SkiStar AB's interim report for the period September 2024 to November 2024 demonstrates the company's ability to navigate economic headwinds with stable demand for mountain holidays. The company's efficient management, cost-cutting measures, and revenue-enhancing strategies have contributed to its improved operational efficiency and increased cash flow. SkiStar AB's commitment to returning value to shareholders, coupled with its stable demand, contributes to its shareholder value and maintains investor confidence in the company's long-term prospects.