Comments from the CEO Stefan Sjöstrand

We end a year in which we have delivered positive results, in the middle of an ongoing pandemic, with strong momentum in business development, acquisitions and divestments.

All Swedish and Norwegian destinations remained open throughout the winter season with more new guests visiting us. However, the absence of foreign guests has had an adverse effect on our earnings. Our new focus on the summer months, SkiStar Sports & Adventures, encouraged more summer guests.

To strengthen our position as the leading holiday organiser for Scandinavia, we decided upon two major strategic transactions during the year. The first was that SkiStar will divest its ownership share in St. Johann in Tirol, although the transaction is not yet complete. The second was a deepening of our collaboration with Peab in Skiab Invest AB, where we jointly own the six best hotels and lodges in Sälen, Trysil and Hemsedal. As a result of the trans-action, SkiStar will run all hotels in a new hotel division from 1 July. The transaction enables us to offer our guests an even better overall experience when they visit us. In December 2021, we are opening our latest acquisition: SkiStar Lodge Hundfjället, a brand new lodge in the Sälen mountains and a key part of the develop-ment of SkiStar Sälen into an international mountain resort.

The new focus on the summer season enabled us to increase our Q4 2020/21 sales to SEK 246 (162) million. The strong inflow of guests has resulted in an increase in all revenue categories, and we are also seeing additional revenue from our new hotel operations.

It is very pleasing to be able to report a profit after tax of SEK 234 (287) million for the full year 2020/21 in an industry that has been affected by the pandemic and restrictions on travel and socialising. The absence of foreign guests, particularly in Norway, is having a negative impact on earnings.

Our cooperation and dialogue with the wider industry, health care services, the authorities and our skiing associations prior to the winter season ensured that we were well prepared for another Covid-adapted winter season. At the same time, we invested in digitalisation, including digitalised check-in/check-out and SkiPass purchasing, which has been appreciated by our guests.

I am very proud of our Covid-safe precautions, which resulted in nearly 90 percent of our guests feeling safe and secure while staying with us, which is a testament to the hard work our employees put in to give our guests memorable mountain experiences. It is also particularly pleasing that seven percent of our guests were new to SkiStar during the winter season.

As a further step in SkiStar’s strategic shift from a winter company to a year-round mountain tourism company, we launched SkiStar Sports & Adventures in summer 2021, with a range of activities such as trail biking, climbing parks and lift-assisted hiking. Interest in staycation breaks and active holidaying all year round remains high, which is also reflected in our visitor figures: 30 percent more visitors used the lift system and activities on the mountain in summer 2021 than in the previous year. We also note that as many as one in four visitors have not visited us before in the summer and one in three have not visited us in the winter either. This creates a range of opportunities for increased visitor numbers and revenue in both summer and winter.

Our retail operations continue to grow strongly, particularly online at skistarshop.com, which grew by 16 percent during the financial year. Our digital platforms (skistar.com, skistarshop.com and SkiStar App) had 32 million visits during the year, an increase of 14 percent. The number of MySkiStar members is now 1.3 million (+36 percent).

We have taken several steps forward in the area of sustainability this year, with a new sustainability strategy that includes ambitious targets to reduce our emissions by 50 percent by 2030, while getting more people moving. We do this by offering more activities at our destinations all year round, and also in dialogue and inter-action with our stakeholders and partners.

Interest in alpine mountain tourism in Scandinavia is greater than ever as we approach winter, with many booking early and many foreign guests, particularly from Denmark, returning as travel restrictions are eased. This means that our bookings for winter 2021/22, expressed as the number of overnight stays booked through SkiStar’s accommodation agency, are historically high compared with the same period the previous year. Looking back to a comparison with the 2018/19 winter season, the increase is even greater, indicating that the recovery is accelerating and the staycation trend is here to stay.

We are better equipped than ever for the coming financial year, having successfully conducted our operations over two summer seasons and two winter seasons during the pandemic. Despite Covid-19, we have confidence in all the experience and knowledge we have built up as a company during this sometimes challenging period. Our core business of alpine skiing, spending time outdoors in the fresh air and having active holidays with family and friends stands firm in adverse conditions, both today and in the future.

Stefan Sjöstrand,
President and CEO of SkiStar AB