SkiStar AB Q4 2023 Earnings Call Transcript

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

Question: Karl-Johan Bonnevier - DNB Markets, Inc. - Analyst : Yes, good morning, Stefan and Martin. And thank you for all those really good slides. Lots of information then. I think a lot of things that will make it easier to follow you if you continue to use those also going forward. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 03, 2023 / 8:00AM, SKISb.ST - Q4 2023 SkiStar AB Earnings Call A couple of smaller questions and a couple more broad questions for me if it's possible. And just first, looking at your booking pattern that you alluded to, and maybe, back to more normal same pattern or the late booking pattern you saw last year. I remember last year, you could say higher marketing cost in season to, I guess, try to fill the gap. Is there -- do you believe that your marketing costs this year will, say, be balanced back towards more normal levels again as well?

Question: Karl-Johan Bonnevier - DNB Markets, Inc. - Analyst : And when you look at the SEK50 million cost savings that you are now quantifying, do you see that as a net saving coming through? Or do you see other areas where you can spend that kind of saving wisely and maybe do some additional investments instead?

Question: Karl-Johan Bonnevier - DNB Markets, Inc. - Analyst : Excellent. I interpret, the answer that you see the SEK50 million, more or less as a net cost saving in this respect. That everything else equal, it should be a SEK50 million lower cost this 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. OCTOBER 03, 2023 / 8:00AM, SKISb.ST - Q4 2023 SkiStar AB Earnings Call

Question: Karl-Johan Bonnevier - DNB Markets, Inc. - Analyst : Good. And looking at the strong exploration development operation in Q4. I know you've alluded to that this year was going to be back-end loaded, but obviously, strong development. When you look at the pipeline, you now have -- what do you see for this year, the year starting so to say? Is this a level that you can continue at for -- on a full-year basis? Or should we expect, say, a more modest number there given the -- given how the consumer outlook looks?

Question: Karl-Johan Bonnevier - DNB Markets, Inc. - Analyst : And Martin, you mentioned that you have been doing some additional revaluation of investment projects and properties in Skiab. Could you allude to the size of those?

Question: Karl-Johan Bonnevier - DNB Markets, Inc. - Analyst : Yeah, you said that you've, I guess, with the property cycle turning over in so many places, you have also done revaluation of investment properties in Skiab. And could you allude to the size of those?

Question: Karl-Johan Bonnevier - DNB Markets, Inc. - Analyst : If I remember the number in Skiab right, that should be about SEK20 million, SEK30 million backward revaluations during this year. Is that about correct?

Question: Karl-Johan Bonnevier - DNB Markets, Inc. - Analyst : Excellent. Looking at -- you also mentioned, Martin, that the maintenance that you saw in the operation coming out of COVID and so on, and the pickup on maintenance costs during this year. Are we up to, say, more of a running level now? Or did you see -- would you expect that to come down as well during this year? Or is this just a new running level we see now?

Question: Karl-Johan Bonnevier - DNB Markets, Inc. - Analyst : The number of projects?

Question: Karl-Johan Bonnevier - DNB Markets, Inc. - Analyst : Excellent. Stefan, I remember you said that you were a slight disappointed by the financial performance of hotel operation. And now, you obviously got a new managing director for that operation. Do you see that you can quick fix it, so that get back to maybe breakeven during this year? Or is that too ambitious? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 03, 2023 / 8:00AM, SKISb.ST - Q4 2023 SkiStar AB Earnings Call

Question: Karl-Johan Bonnevier - DNB Markets, Inc. - Analyst : Sounds very logical. Looking at CapEx for this year, is it still a good assumption that you will reach around SEK600 million, or have you updated that?

Question: Karl-Johan Bonnevier - DNB Markets, Inc. - Analyst : Sounds very logical. And Stefan, one final from me. A little more long term, maybe. When you launched the mounting strategy, you talked about getting the number of ski and activity days up to I think it was 6.6 million. This year, it fell back to, was it 5.9 million, something like that. With the investments you do, and how you develop the resorts, when do you think 6.6 million will be a logical number?

Question: Karl-Johan Bonnevier - DNB Markets, Inc. - Analyst : Excellent. Well, thank you very much for all the extra color, and all the best out there.