SkiStar AB Q3 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Adela Dashian - Jefferies Group LLC - Analyst : Good morning, Stefan and Martin, a couple of questions from my side. If we could start on the top-line development, would you be able to provide us with some color on what the volume versus price mix was this quarter? And also, if we should expect anymore more price increases to meet this year?

Question: Adela Dashian - Jefferies Group LLC - Analyst : Yes. Okay. But is it more late bookings that you expected would materialize that didn't materialize rather than a cancellation?

Question: Adela Dashian - Jefferies Group LLC - Analyst : So I'm just trying to wrap my head around what could be the underlying factor that's driving the slower pace. Do you attribute it to the weakening macroeconomic conditions? Or do you see any other reason why demand [is low] versus the beginning of the winter season?

Question: Adela Dashian - Jefferies Group LLC - Analyst : So do you expect the number of securities to stabilize or normalize on these levels? Or do you expect a drop next year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 20, 2023 / 8:00AM, SKISb.ST - Q3 2023 SkiStar AB Earnings Call

Question: Adela Dashian - Jefferies Group LLC - Analyst : Got it. Okay, thank you. And then also on the property development business, you talked about the capital gains being quite choppy during quarters and also years. Do you expect any progressions we made there this year that could support growth, or should we expect it to be pretty muted for the remainder of this year?

Question: Adela Dashian - Jefferies Group LLC - Analyst : But the weakness that's driving the results in the property development business today, it's that's purely related to the macroeconomics factors.

Question: Adela Dashian - Jefferies Group LLC - Analyst : All right. And then, just a clarification on your outlook comments. Is the 5% plus on book gains related to the upcoming winter season, or does it also include the summer months?

Question: Adela Dashian - Jefferies Group LLC - Analyst : And for Q4, since you said that the restructuring effects will start from September 1, we shouldn't expect any real contribution to the fourth quarter, correct, on profitability?

Question: Adela Dashian - Jefferies Group LLC - Analyst : Got it. And then just finally, on the lower rental accommodations in this quarter, should we view this as a structural change in the way customers behave that they use other types of platforms than your own website for their rentals? Or do you think this is just specific to this winter season? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 20, 2023 / 8:00AM, SKISb.ST - Q3 2023 SkiStar AB Earnings Call

Question: Adela Dashian - Jefferies Group LLC - Analyst : Yes, makes total sense. And that's it for me. Thank you very much.

Question: Stefan Stjernholm - Nordea Markets - Analyst : Hi, Stefan and Martin, Stefan here. Many of my questions have already been asked, but I have a few detailed ones. If I start with the change in payroll tax in Sweden for young employees, can you say anything about how much that will impact you?

Question: Stefan Stjernholm - Nordea Markets - Analyst : If you give a full-year figure, it's SEK25 million, SEK30 million or --

Question: Stefan Stjernholm - Nordea Markets - Analyst : Yes, I understand. And regarding your CapEx, you increased that by SEK120 million due to this express lift in Vemdalen. Just to get the right total figure, can give the total figure for next year?

Question: Stefan Stjernholm - Nordea Markets - Analyst : Okay.

Question: Stefan Stjernholm - Nordea Markets - Analyst : Good. And the final question from my side, regarding the hotel segment, I guess you had targeted breakeven for this fiscal year. But given that the end of the winter season was a bit slower than expected, I guess that will be tough for what you see.

Question: Stefan Stjernholm - Nordea Markets - Analyst : Okay. I understand. Okay, those are my questions. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 20, 2023 / 8:00AM, SKISb.ST - Q3 2023 SkiStar AB Earnings Call

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : Yes, good morning, Stefan and Martin. Lots of good questions already, and just a couple of more for me, if I may. Looking at the plus 5% in bookings, obviously a good number compared to last year, as you put it. How much of the capacity in your system would be booked at this time?

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : And when you book -- when you look at your booking systems compared to what you now find on Airbnb and Facebook and similar kind of thing, how is the number of listings that you have in your system developed?

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : Exactly. How much of the capacity is being controlled?

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : Yes -- no, that's fine. I just wanted to hear that it's growing numbers. So you are not missing -- or say, losing out of your insight into what's available at the different resorts? And then -- and when you look at the listing, how is the pricing looking for those if you compared to last year? Are the owners were looking for a price hike, so aggressive price hikes, or are they more modest?

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : Sounds very reasonable. And you mentioned the international components in this pre-booking. Is there any meaningful change in it? Or is it the same, more stable, looking at your recurring clients in both phases coming at this stage?

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : Is it [same] compared to before that we are now early -- booking earlier than you might have seen previously, basically looking at the currency, I guess? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 20, 2023 / 8:00AM, SKISb.ST - Q3 2023 SkiStar AB Earnings Call

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : Excellent. And just to -- understand how you do this these days, the hotel operation, is that also including in this booking pattern? Or is that treated as a separate kind of thing? So this is just your -- they traded the accommodations or what we should call it where they do it for third parties?

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : But basically, what I'm after is that we should expect the same kind of positive pattern in basically what you separately report as hotel operations than as well as --

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : Good to know, and very good comment about the calendar effect. And I guess when I look back at the comparison, 2017-2018, as you remember, which was the last time you had that kind of really favorable seasonal pattern, I think we -- I saw that ski days were up 6%, 7%, or something like that. If you're looking at, say, no impact from consumer kind of trade downs or staying home or something like that, would that be the kind of best guess for a seasonal impact, so they're moving into 2023-2024 in ski days?

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : Excellent. Good to have calendar with you. And if anything, I guess --

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : Excellent. Looking at -- you mentioned electricity, and it seems like you have been able to, with both your hedging and doing saving some on the usage, mitigate the extreme inflation we have seen in that cost item. Do you see that the deal you now struck with Jamtkraft will allow you to basically mitigate it also 2023-2024?

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : Sounds very logical and very, very straightforward. And, Martin, if I understand you right, there are projects in the exploration project development portfolio that is coming into harvesting. So maybe if you take the next 12 months, you should -- we should have a somewhat better kind of performance coming out of that than we have had over the last two or three quarters.

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : And when we look at the costs you now took in the Q2 report related to this, what I understood was partly related to these kinds of things. How does that say much if there were such things where you felt that you were sitting in the wrong kind of position, or was it the market price adjustments, or what happened?

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : And if I look at the business area breakdown, the remaining SEK28 million that you have indicated, that non-recurring item, where did those pop up?

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : Yes, you highlighted the SEK48 million as non-recurring items.

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : The SEK20 million was, I guess, the three valuations. And the other SEK28 million, where did that pop up?

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : So am I right to expect that the SEK15 million are then in this key operation and the SEK13 million and SEK20 million are in the project development exploration operation?

Question: Karl-Johan Bonnevier - DNB Markets - Analyst : Excellent. Thank you and good luck out there.