SkiStar AB (publ) Q3 2025 Earnings: Resilient Winter Results & Positive Outlook | June 20, 2025

Q3 2025 Highlights and Performance

SkiStar experienced a decline in sales and profit in Q3 2025, primarily due to a late Easter and exceptionally poor weather conditions in week 16 (mid-April 2025). Warm temperatures led to early snow melt, particularly in Sälen, Trysil, and Vemdalen, significantly impacting ski days and bookings. Despite the challenges, SkiStar's staff worked tirelessly to maintain slopes.

Key Financial Figures (September-May, compared to last year):

• Net Sales Growth: +1.3% (last 12 months)
• Ski Days: Down 1.6%, totaling 6 million.
• Accommodation Occupancy: Down 3% to 46%.
• Ski Pass Revenue: Up 3.2% (driven by price, despite volume decrease).
• Accommodation Revenue: Flat (prices up 4%, objects down 4%).
• Retail Segment: Improved, with ski rental and sports shops showing positive sales development. SkiStar's own brand "Equipped" grew 33%, and total retail turnover reached nearly SEK 700 million.
• Operating Profit: SEK 816 million (last 12 months), including a SEK 126 million capital gain. Underlying operating business profit was SEK 690 million, the best result ever excluding the pandemic peak year.
• Cash Flow from Operating Activities: SEK 1.2 billion (down slightly due to a repayment last year, but still high).
• Net Investment: SEK 295 million (lower than last year, a timing effect; full-year expected at SEK 550 million).
• Leverage (Net Debt/EBITDA): 1.1, a decrease from last year, indicating a strong financial position.
• Equity Asset Ratio: 64% (excluding IFRS 16).

Strategic Initiatives and Future Outlook

SkiStar remains committed to its strategic framework, focusing on mountain operations and property development, aiming for 6% growth and 18% margin.

Key Strategic Developments:

• Refinancing: Secured new agreements with DNB, Handelsbanken, and Nordea, increasing credit by SEK 700 million with improved commercial terms. All loans are now linked to sustainability performance.
• Property Development:
  • Sold land (Vasakölen) to Skiab with a long-term lease agreement for 600 new beds by winter 2026-27 (correction from presentation, initially stated for next season).
  • Signed a new agreement with Utmarkslaget (landowner in Trysil) to jointly develop properties, starting with the area around the gondola.
• Acquisitions & Operations:
  • Acquired Högfjällshotellet's operations in Sälen, taking over from May 1st.
  • Acquired Juls Sport in Trysil (effective September 1st) to strengthen retail presence.
• Sustainability: Collaborating with seven other ski resorts in a Global Sustainability Alliance to pressure suppliers for more sustainable solutions (e.g., fossil-free steel, electrical development, snow efficiency).
• Partnerships:
  • Extended long-term collaboration with SJ and Snälltåget for train bookings throughout the winter season.
  • Partnered with OKQ8 to subsidize HVO fuel for customers traveling to destinations, promoting sustainable travel.

Winter 2025-26 and Summer Season Outlook

SkiStar anticipates a very strong winter 2025-26 season due to favorable calendar effects (Christmas holidays and Easter in weeks 14 & 15).

Winter Season Projections:

• International Guests: Continued increase, reaching over one-third of total guests, with 8% growth. New flights to Scandinavian Mountains Airport from UK (Gatwick, Heathrow, Manchester) and direct flights from Düsseldorf and Brussels via TUI are expected to boost international arrivals.
• Investments:
  • New gondola in Trysil.
  • New ski lift and lighting in Åre (Björnlandsaden) to improve operations in windy/dark conditions.
  • New ski area development in Vemdalen.
  • Widening slopes in Sälen for modern skiing.
• Pricing Strategy: Introducing lowest-price ski passes in Klövsjö (SEK 3.99/day or SEK 19.95/week) and Sälen Högfjället (SEK 2.95/day) to attract new families and counter media criticism on pricing. Dynamic pricing will continue for other segments.
• Bookings: Winter 2025-26 bookings are already 30% higher than at the same time last year, setting a historical record.
• Marketing: Increased marketing efforts planned, particularly targeting Swedish families with benefits like free meals for children staying at hotels and free equipment rental.

Summer Season Projections:

• Bookings: Up 2%, indicating continued growth in year-round business.
• Activities: Focus on package offerings following significant investments in summer activities.
• New Initiative: Launching a new soccer tournament in Hammarby, Stockholm, to be hosted in Sälen next summer, leveraging SkiStar's accommodation capacity.

Analyst Questions

During the Q&A, SkiStar clarified:

• The 30% booking rate for next winter is a historical high, 1% higher than last year's record-setting 9% increase.
• The 600 new beds from Vasakölen are for winter 2026-27, not the upcoming season. However, Högfjällshotellet's beds will be integrated.
• Cold summer weather has a limited impact on summer sales, as visitors are increasingly prepared for varied conditions.
• Meeting the 18% margin target for the current fiscal year (2024-25) will be challenging due to the Q3 setback.
• CapEx for the current year is expected to be around SEK 550 million. Investments will be higher next year due to major projects like the Trysil gondola.
• The acquisition of Juls Sport aligns with SkiStar's strategy of vertical integration to strengthen its position in different business segments and grow revenue streams beyond just ski lift operations. This also includes the Högfjällshotellet acquisition.
• The Q3 impact was largely due to private homeowners not visiting due to warm weather, as efforts to fill capacity through pricing adjustments were unsuccessful. Staff costs were difficult to mitigate due to schedules and efforts to maintain slopes.
• Water supply for snow production is not an issue.
• Conference volumes have been slightly down but are expected to recover.
• SkiStar aims to bring back Swedish domestic visitors through targeted marketing and benefits, alongside growing international guest numbers.