March 9, 2020 / 2:50 PM / a month ago

BRIEF-Scandic Revises Sales Forecast For Q1

March 9 (Reuters) - Scandic Hotels Group AB:

* SCANDIC REVISES SALES FORECAST FOR FIRST QUARTER

* COMPANY HAS ADJUSTED ITS FORECAST FOR NET SALES FOR COMPARABLE UNITS DURING Q1

* SINCE BEGINNING OF MARCH, HOWEVER, SCANDIC HAS SEEN A DECLINE IN BOOKING ACTIVITY AT SAME TIME AS NUMBER OF CANCELLATIONS HAS INCREASED, BOTH FOR ROOMS AND MEETINGS

* AS OF MARCH 9, SCANDIC’S BOOKINGS MEASURED IN NUMBER OF ROOM NIGHTS WERE 8% LOWER FOR MONTH OF MARCH THAN DURING CORRESPONDING PERIOD LAST YEAR

* THIS IS DUE TO CHANGES IN CUSTOMER BEHAVIOR AS A RESULT OF SPREAD OF CORONAVIRUS THAT AMONG OTHER THINGS HAS LED TO SUBSTANTIALLY FEWER INTERNATIONAL VISITORS, TRAVEL RESTRICTIONS AMONG SCANDIC’S CORPORATE CUSTOMERS AND POSTPONED OR CANCELLED EVENTS

* BASED ON CURRENT BOOKING RATE AND UNCERTAIN BUSINESS SITUATION, SCANDIC NOW EXPECTS THAT NET SALES FOR COMPARABLE UNITS IN MARCH COULD GO DOWN BY ABOUT 15%

* MARKET SITUATION IS DIFFICULT TO PREDICT BUT SCANDIC EXPECTS SALES DEVELOPMENT TO BE SIGNIFICANTLY NEGATIVE IN COMING MONTHS AS WELL, EVEN IF ACTIVITY LEVELS IMPROVE IN NEAR FUTURE

* SCANDIC HAS TAKEN VIGOROUS STEPS TO ADAPT COSTS AND INVESTMENT LEVELS TO NEW SITUATION

* STAFFING EXPENSES ARE LOWERED BY REDUCING MANNING LEVELS IN BOTH HOTELS AND SUPPORT FUNCTIONS

* IN ADDITION, A REDUCTION IN FIXED COSTS WILL BE NECESSARY Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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