Welcome to the SkiStar Q2 report. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answer session, participants are able to ask questions by dialing star five on their telephone keypad. Now, I will hand the conference over to the speakers CEO Stefan Sjöstrand, CFO Anders Örnulf. Please go ahead.
Good morning, everyone, and a warm welcome to SkiStar's second quarter presentation for the season 2022, 2023. My name is Stefan Sjöstrand, and I'm sitting here together with my CFO, Anders Örnulf, and we will guide you through the presentation here today. Before we start the presentation, I would also like to highlight that this is the last quarter presentation for my CFO, Anders Örnulf, who have decided to take other opportunities outside SkiStar, and we will welcome his replacer, Martin Almgren, in a couple of weeks from now on. Let's continue with the presentation, and we will try to guide you through a short introduction. Anders will take you through a little bit of the quarter summary, and I will guide you through a little bit of an outlook, how it looks going forward.
First introduction, most of you on this call have been with us before, but we are just as a repetition, we are running the five largest destinations in Scandinavia, or resorts, and also this special destination here in SkiStar Stockholm, where we also use as an innovation hub for our business development. If we then look into the position, we are really the leading holiday organizer for Scandinavia. The division is very simple. It is to create memorable mountain experiences, and we do it all year round. If we then look to what the customers are saying, that actually eight out of 10 are saying that we are fulfilling that position, which is, of course, extremely great to have a year like this.
Eight out of 10 of our employees say that they like to come to work every day, which is, of course, very important. We continue our digital transformation and we can see that close to 80% have purchased and downloaded the ski pass digitally. 95% of our customers or visitors have checked in digitally as well to the accommodation, which is of course extremely strong when you try to are into this transformation into the digitalization. We continue to work on this transformation journey where we are really into these four areas of digitalization, of sustainability, of the all year round, and also that we are really ready for growth and we will take you through that the next coming slides. Let's start with the highlights of the quarter.
Of course, Anders will take you through the numbers specific, we are extremely glad that we are presenting the highest and best quarter ever for SkiStar in connection to the turnover. We have a growth of 8% and we are also showing our EBIT before tax, which is the highest result ever. That is very much connected to that we had a very good start, early start of the winter season with fantastic ski conditions. We could also see that the there is a very strong underlying demand for travel to SkiStar's five destinations in Scandinavia and to also spend your holiday there.
We can also see that there is a new customer behavior coming up. That behavior is connected very much to that the many of people having their cabins at our destinations have decided to rent out them themselves outside SkiStar systems. When you link that connected to SkiStar's booking numbers, you can see quite heavy or much more interest from visitors to come and visit us and spend this the time at our destinations. Those two together are very important factors when we now present our quarter result. As some of you listened to our previous report in the first quarter could hear that we have -13 in bookings. There was also a bit slow booking situation, both over Christmas period, but also over the weeks two to six.
Since the pattern of booking closer to your stay, as well this pattern which I just described with people renting out their cabins outside the SkiStar system is showing and helping us to deliver this amazing result. We are very glad for that. We can also see that we have a strong growth in our retail sector. We hear many retailers are actually telling that it's difficult in the market. They are slowing down in sales of sports activities, we are actually showing the opposite. We have a very strong sales in our retail sector. We have a very strong sales of our own brand EQPE, that is, of course, helping us to create this growth momentum at our destinations. We can also see that we have many more international guests coming back.
It's very easy to forget quickly, but for us who have a good memory, saying that actually in up to week six last year, we have a lot of restrictions in Norway. Since those restrictions now are away, we can see that the international guests are back into our Norwegian destinations, both from UK, Netherlands, Germany, but also a lot of Danish visitors are coming back, as well as the Swedes. That's why we can also see big movement from the Swedish destinations into the Norwegian destinations, and this has now more been flattened out compared to how it was in the pandemic.
Lastly, but not least, maybe we can see that this is our biggest quarter, it's most important quarter. We can also show that we have stabilized our EBIT levels on a completely new level than it was before the pandemic, which I think is very important for all of you to see when I now hand over to Anders. No, sorry, I will just also show. I had one slide which I also showed last presentation, sorry, which we decided to show again because it was appreciated to show the digital activities to SkiStar. We can see that there is a very high interest still to visit skistar.com. We have a little slower visitation to skistar.com while we have an increased visitation to the app. This is very natural.
We can also see that we have an increased conversion to the skistar.com site. We could also see that we have an increased conversion into SkiStar Shop, and that is also why we have this increased sales within the retail side as well. Lastly, but not least, we are increasing the SkiStar members from 1.5 million to 1.7 million members in Q2 this year compared to last year. That is, of course, helping us also to own the customer data and controlling the customer data compared to many other companies working in this digital world. Now, I'm handing over to Anders, who will take you through and guide you through our fantastic numbers this quarter.
Thank you, Stefan, especially for the introduction. Before commenting the first half year results, we'd like to give a perspective on the financial development. It's important to understand that SkiStar has had a strong financial growth before the pandemic, but also shows that we hope to continue to build on completely new profit levels. Here you can see a graph that shows historical development of EBIT and EBIT margin, ending with a figure for 12-month rolling. Main reason behind the historical profit development are great effect of underlying volume increase and smarter and differentiated pricing of especially ski pass. It's also important to highlight that in the previous full year results, a substantial part has come from capital gains in the property development division at around SEK 150 million-SEK 190 million. The current development is significantly more sustainable.
The two financial years, 2019, 2021, are of course, affected by the pandemic. We cannot fully parry the loss of revenue, but we did maintain a strong profit, which gave us peace of mind in a very stressful time. We can also see how special the previous year was. A good economy in Scandinavia, a suppressed need to travel, and partial travel restriction gave us a fantastic 2021, 2022 that we now face and compare against. When you look at the numbers, you have to have some perspective to it and look at the current 12-month rolling. It's easy to be impressed of the SEK 763 million number. Especially when we know that with Q3, we have half of the winter season to come.
It undeniable looks like the EBIT levels are at a whole new level. Diving into the second quarter or the first half year then, as you can understand, the first quarter is very quiet for SkiStar. This is where it happens. It is, of course, gratifying to see the continued growth, as Stefan mentioned, about 8% comparing to a record year, which is of course very important for the future. Four takeaways on the revenue side. On the left side, the first four blocks, you will find our core business. We managed to be on par with the previous year, which is better than we dare to believe. Continued strong development, as Stefan mentioned in the retail business. We report a record sales for the entire business area, an increase of 21% compared to last year.
Growth come from primarily online sales, 45%, but also in physical stores at a positive development. We also now run a hotel and lodge division, which contributing SEK 227 million top line for the first half year, with a continued high operational focus with the additional hotels in the portfolio, such as Hotel in Vemdalen. Fourth, the income in the property development is more linked to the structure of the project. This is primarily a project in Norway aimed at the private market, where we've had the completion of the first out of total four stages in the second quarter. A bit development by segment. As we mentioned earlier, we like to highlight the second quarter in isolation. We were in line with the previous year record numbers.
Looking at the first half year, the story is somewhat different, - SEK 122 million versus last year. You see the effect of our first quarter, which was worse, partly due to higher activities before the winter, but also a timing effect of certain types of costs. I will come back to that. We had some profit to make up for when the lifts opened, but of course, we already knew that. We'd like to highlight our hotel and lodge divisions continue to grow, partly explained by a full year effect of three additional hotels. SkiStar Lodge Hundfjället, Ski Lodge Skarsnuten and Hovde Hotel in Vemdalen.
Great focus on integrating the business in SkiStar, we also see an effect of higher depreciation due to investments and also an indirect effect of inflation with an increased rent for the hotel and lodge division. The financial summary to round things up for me, a very strong result for the first half of the year, driven primarily by revenue growth. Costs are higher than last year. As always, there are several reasons behind it, but partly because we have a higher activity in advertising and maintenance, but we also suffer from inflation, cost pressure, increased prices in all types of consumption. For example, fuel. Higher depreciation due to new investment levels is also behind the loss of margin.
You should not forget that with our business module, we had a huge effect of figures last year where we had a 100% margin on the last ski pass sold. We take the cost pressure seriously, and we have several activities in the short and long term to counter it. Of course, with our structure, personnel planning becomes very crucial. The decline in cash flow from operating activities compared with previous years is primarily linked to the sale of shares in subsidiaries Sankt Johanner Bergbahnen of EUR 50 million, and of course, partly due to the slightly decreased operating profit. Our balance sheet is extremely strong, I would say, with an equity asset ratio of 51%, excluding IFRS 16. Net debt, excluding IFRS 16, is 1.2, and the liquidity forecast is good.
Partly due to responsible actions in the pandemic, also our record year when it comes to sales and profit last year. SkiStar is financially strong both in the short and long term, that is. We have invested more than SEK 600 million for this season, and we finance the high CapEx levels from our own generated cash flow, and we show that our business model works and the guests will benefit from all the modernizations and upgrades at our resorts. Of course, Stefan will talk about our plans and outlook later on. I will finish off with a short update on an important topic for the winter season, the energy and electricity prices. We have had an internal project during the year to reduce consumption.
It has been both educational and very successful as we reduce consumption in the first half year by almost 20%. Together with our portfolio management of purchases, the costs are in line with last year despite the high spot prices. We have now passed the big peak of this year's consumption, so we can state that this went well, even if we have respect for the coming winter and winter seasons. With that ending, I will leave it back to Stefan to focus on the future and of course, also our sustainability results for the second quarter.
Thank you, Anders Örnulf. Just shortly about our sustainability results, of course, our goals is to activate and have 7 million activity days. That's one of our very important goals. We can clearly state and see that we are really in line with this goal. We have had also increasing now the activity with both stronger connection with the municipalities to have much more connection with schools and that type of activities. We can see that that increase. Also we continue to deliver free ski passes for persons under 16 years of age, which is of course something very strong and something we're very glad at. Also this transformation into the year-round business is also helping us to create more activity and activity days, not only ski days, actually.
If I then look into the mid part here, where we're also saying that we should reduce and half our climate pressure and that is something we are really in line with as well. We can see that we do a lot of activities. We are working with the municipalities on the ways up to the mountains and, for example, the largest destination, Sälen, together with the municipalities along the way up to Sälen, we have created something called the Green Road, where it will be many more charging stations. For example, also, this year, we used our mobile charging station together with Audi and Jämtkraft, and that is, of course, paying off directly with 700 cars charging the cars for free at our station.
Clearly a good activity. We also increased the partnership with the person here is Söderberg & Partners, who have decided to invest in us, actually. We are doing a very interesting focus on putting the focus on biodiversity. That's something we are really proud of that someone external also decide to invest and create projects together with us in this important area. Lastly but not least, we continue the dialogue and interaction. I must say it was really interesting to have also the minister of what you call it, landsbygd in English.
I don't know that, but, who is responsible for creating a living municipalities. He was visiting us in Sälen this year, and it was great to have him there and also showing the important dialogues we have with the government as well. Really glad for that. Also, we can see that we have very important discussions, and we dare to also discuss the climate change. We have had several. We have this report we have created together with SMHI and MET Norway in Norway and Sweden to look at how SkiStar's destinations, how will they look like the next coming 100 years or 50-100 years from today's perspective.
Luckily, our five destinations have the placement of where we also dare to go out and talk about this climate change in a much more fancy way compared to how it is south in the Alps, for example. We can clearly see and state that the five destinations we are running, they will be impacted like all destinations or the whole society, but it will rather be in the next coming 50 to 100 years rather than the next coming 25, which is of course, extremely helpful. That's why it's so important that we also have all these activities within sustainability in focus. We are very glad to also be out and take the debate in this important area. Some outlook. How does it looks like now going forward?
If we just look into where we have just presenting our quarter, we have had fantastic ski and snow conditions at our destinations. We haven't seen these great snow conditions for many, many years, maybe that's also connected to what I just spoke about, this climate change, that we can see that the winter is becoming longer and later, we will see very strong destinations and conditions for us. When we looked into the last quarter, we presented - 13 in our booking, now we are presenting - 10. Here I would like to stay a couple of minutes because we still have these minus numbers, we have to remind ourselves that we had the last year, which was insane, more or less, about people couldn't travel abroad. It was the restrictions.
Now when we are coming back, we are facing a slowdown. However, we can also see an increase of this pattern that people are handing out their cabins for rent out in systems like Airbnb, like Facebook, like Blocket, like Finn, et cetera. That, of course, help us to fill our destinations. I think we should not look too much on the - 10 figure, actually. We don't have any better figure right now to show you guys more than we feel very good about the situation, even though that we see a later booking pattern. Since it is a pattern and it continues and we see it latest this morning when I checked the numbers, we could clearly see that there is a lot of bookings for the Easter still.
Good conditions, good forward-looking and so on. Also, the investments, we continue to invest, even though that we have tough times, and we can do it because we have a very good financial situation. We can see that when we are doing that, we also create the state of the art level of our destinations, which meaning also that we could continue with the pricing power within our destinations. We see an underlying strong interest for an active holiday in the Scandinavian Mountains, not only for the next coming Eastern weeks, also actually for the summer period. We will also have a big competition going on in Åre this summer, which will help us to increase the number of bookings for summer in Åre as well. That will be helpful for us.
We also continue to develop with business innovation, and we do it with all year round activities. You have seen this skiing on the grass, and that works very good in Hammarbybacken. That we now will take to destination in Sälen and in Trysil. We have had this mountain coaster. We will also invest in that in Sälen and Trysil. These climbing parks, we will invest in that in Vemdalen, as well as biking and trails for biking. That something continues, and we also see high interest in have this actually sustainable holiday as well in your home country this summer, especially since the Swedish krona, Norwegian krona is in a position that will be very helpful for us.
The slide you have or the picture you have with the lady in red there starts within service and the way to take care of people is actually a new booking site where we will start one of our business development project, where since we are very good in recruiting people. We have said that this could create a great business opportunity for SkiStar to also be a company working within the area of manpower, that we could actually both support others to recruit at our destinations, but also support, for example, summer destinations and hotels with our people we have recruited for the winter period to help them to also get the job in the summer period and really take advantage of our large base of applications for work at SkiStar.
It's a new business development, and we will continue to develop that, and we will also give you some more interesting development further on of the year. We continuously to work with the year round and also new business activities and income streams. Lastly, we are ready for growth. Like Anders said, we have a very strong balance sheet. We have a net debt of SEK 1.2 excluding the IFRS, and this is of course extremely helpful in these tough times we are coming into. I must say we are really proud of the work we have been doing the last three years of restructuring the company and also get this ready for growth.
We are also offer these activities year round, and that is also helpful, like I said. When we now have tough times, people maybe look into the cost in a different way they have done before. Our way of offering holiday where you could stay in a cabin, you cook your food yourself, sometimes maybe people even shop at home before they travel to us and also cook themselves and put it into the ski box and bring it with them. That's of course a very good type of holiday. When we look into this inflation and the cost period, I must say we are good at this. We have shown during the pandemic that we can handle this situation, and we could handle it both take our costs down.
A lot of our cost from staff is flexible costs. Of course, we also show now during this quarter that we have been very cautious, and we will also be cautious going forward to make sure that we have a good control of our costs. I am also very glad that we have also stated a very clear vision about our future plans for 2030, both from a sustainability point of view, but also from an expansion and also an investment point of view in our existing resorts, as skiing is a very important part of the Scandinavian DNA, and that also help us to create the demand for the active holidays, both winter and summer. I end up there and say thank you for listening, and we will now start with the Q&A.
If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. The next question comes from Fredrik Lithell from Handelsbanken. Please go ahead.
Thank you very much. Thank you for the presentation and for taking my questions. I have several questions, but I stay at two questions, and then I go back into the line and see if there are others as well. You have talked with the quarter that you now closed. You talked earlier about that last year you had Trysil was difficult for Swedes to travel to due to the COVID restrictions, so that was a positive this year. You also had a negative this year if we look year-over-year, and that was the fact that New Year and Epiphany was in the same week, so you didn't really have three true vacation weeks. What would you say the net is between these two?
If you now can elaborate on the numbers would be interesting to hear. That's the first question. The second is, in your report, you state that this year's calendar provides two holiday weeks, both before and after the Easter holiday. I have kids myself, and I'm used to the fact that schools are closed over two weeks over Easter. Could you elaborate a little bit on what you see here? Thank you very much.
Should I start?
Yeah.
Stefan, you can maybe fill in. I can start with the easy one. The second part of the question, Fredrik.
Yep.
I live in Stockholm, and my kids are their school is closed after the Easter Holiday this year. I know in other part of Sweden, the week before the Easter weekend or the school holiday, it will mean that we will be able to sell full Easter weeks before and after the Easter Holiday. Yeah.
Yeah. All right. You have some people go for holidays before, meaning Friday around the first of sorry, the third of April will be the first day of school holidays.
They will benefit from the Monday off versus your kids here in Stockholm, they will benefit from the Thursday off in school and have the week after. That's what we mean with the two weeks of Easter, so to say.
Oh, okay.
We will be able to have two full weeks of holiday and it's in a very good period of time this year as well. That's good.
For example, yeah.
Yeah
the Eastern holiday was very late, so all the Swedish schools were off the week before.
Oh, okay. That clarifies it. All right. Perfect. Thank you.
That's fine. The second question was, comparing the bad calendar for New Year's versus the Trysil in Norway, the restrictions in pandemic.
Yep.
I have not any figures. I can just confirm what you're saying that the upside of having a open Norway, you can see that in this report, because if you look at page 19 and the turnover pie by segment, you see that Norway is behind the growth year-over-year when it comes to the first half year. Well, I don't have the correct or you can never have the correct fact regarding it, but I would say that that's a more positive effect than the calendar effect for New Year's. Maybe Stefan you want to elaborate.
I can just elaborate a bit on what's happening actually is that while we're having the pandemic and the same with the restrictions up to week six last year, it was more challenging to travel to Norway. A lot of Swedes decided to stay in maybe Vemdalen and in Åre. This year we have less visitors in our booking systems to Vemdalen and Åre. Those guests have then traveled to Trysil and Hemsedal instead. If I balance that out, that means that we now are back on the levels we had before the pandemic in Trysil and Hemsedal. We are slightly above that in Sweden since we have increased the total.
That's what we're also saying, that we are on a new total level of both visitation to our five destinations in Scandinavia versus how it was before the pandemic in 2018, 2019. We are actually above that in number of skiing days, which I think is very important to show that we are on a very good path then. That's one thing I really would like to highlight because sometimes we compare too much to the pandemic in itself. If we then look into 2018, 2019, which was the last year we had the full year, so to say, in a normal way, we are quite far above that actually in number of skiing days.
Since we also have managed to have our pricing power, that has also been helpful of course for us, to create this strong result.
Mm-hmm.
Also that EBIT now, like Anders when he explained the numbers, we have gained a bit more 16, 17, 18 on property gains. Now we are Since we created a new strategy to not be dependent on that, to have a much more, let's say, sustainable development in that way. We're also very glad to see that underlying ski days, our, let's say, core product is much more profitable and much more, yeah, or stronger today than it was before actually. We are very glad that this transition has been good. Fredrik, it was long answers on the question, but I think more to guide you through what's actually happening here, which I think is very important, that we also-
That part was very clear, Stefan. Just to follow up then on the calendar effect then, is that would you say that the calendar effect this year, is that a bigger negative than what the getting sort of Trysil back for the Swedes was a positive? What would be your answer?
No, I must say no. I think...
Okay
... What I think has been very interesting here was that when we were sitting here three months ago and had this report and discussed, we had a lot of, yeah, butterflies, how should it be, etcetera. We could clearly see actually that two impacts. One, that the customer behavior is booking later is here to stay. I think that's important that we also take that into consideration. The second part is that more and more have decided to rent out their own cabin, which is outside our system, which has been actually the main, I would say main reason why we are developing so strong between week two and six, actually.
Week two and six are we making record, versus in the, in the holiday weeks we are slightly below last year, which is also impressive, connected to that many traveled abroad last year.
Perfect. Thank you very much. I go back into the line.
Thanks.
The next question comes from Karl-Johan Bonnevier from DNB Markets. Please go ahead.
Yes, good morning, Stefan Sjöstrand, Anders Örnulf. Just to continue where you ended there on the importance or lack of importance of this pre-booking number that you now give. I noticed that the accommodation sales, including hotels, is up 10% year-on-year. In the market where you then said that you had the pre-booking at the start of this quarter, that was - 13. Is that the kind of numbers we should be looking at? To say that the real number is much more stable or than growing, whereas, as you say, your mix in the pre-booking and use of alternative sites for booking is becoming more important.
I think it is. I can start and Anders can support me. I think this is the best we can show, I must say. Because we are looking into if we could look more into our colleagues in the market as well. Since there is so many new beds coming in for rental, I think this is the best we can get so far. Still, it is a good indicator of where we are, I must say. Also we see high interest of booking for the rest of the season is still there, so it has not ended. I must say it's actually coming in new bookings every day in a good pace as well.
I don't know, Anders, if we should elaborate more on this.
I think it's a good question, but it's impossible to answer like yes or no. If you look at it how it is today, the current situation that Stefan described is not disrupting our own accommodation division. It's an icing on the cake.
Yeah.
Of course, we follow it and monitor it. I mean, turning cold beds into semi-warm, there's nothing wrong with that, and it's a big explanation behind our great result. We will of course monitor and see if it's an underlying consumer behavior, is it recession, or, we follow it. The upsides are bigger than the downside, I would say.
I can just elaborate one more thing. KG, I think you are one of the ones which are really following the consumer confidence also and looking into digital activities. That's why I really wanted to show this slide about digital activities, because that's also showing the interest in visiting us. Even though that you're not booking your accommodation, you are booking your ski pass from us. That's what I think is showing an high interest in that. That's why we also could see that we still have a higher conversion versus last year, which I think is also showing some interest from the consumers to go traveling with us. Even though if you not book your accommodations, you book the ski pass or maybe a ski rent or something else.
That almost answer my next question directly, I guess, because I think the risk, I guess, that a lot of people would see with your controlling less of the booking is that maybe the skistar.com platform is losing a little of its strength. Maybe that's totally wrong looking at your reasoning.
Yeah, because if you look into skistar.com and the SkiStar App, we are actually increasing the number of visits versus last year. We are increasing the conversion as well, we're also increasing the number of SkiStar members. That digital journey continues and actually being strengthened throughout here. That means that I think if you just look at the reasoning around the - 10 then in bookings, that people still then book the ski pass and they still book ski rental from us, and that's why the platform are still extremely valid.
Exactly. I guess that's where you have the margins as well. Those are the kind of revenues you really want to control, isn't it?
Yes, correct.
looking at the hotel operation as well, it looks like you are better back on track. Do you feel that is, also what you're seeing now going into Q3, Q4?
Yeah. I think if I just start first of all, in these numbers, like Anders said, we have added three new hotels. Hundfjället, which wasn't part of the full year last year, and then two new, which one has been purchased by SkiAB and one is acquired by ourselves, Hotel. So that's just so we know that it's three more hotels. Then we are really working hard into the restructuring of how to operate our hotel business. I mean, this is not a quick fix since we are building up for long term here.
We are also transforming now, one of these Trysil hotels, MRT Mountain Resort, into a SkiStar Lodge concept as well, and take that out of the Radisson booking platform to also control our own booking via skistar.com booking. I think we are into a transformation journey. We are actually becoming more efficient. We are looking to staff, what staff do we need to have? Can we be better in purchasing in the restaurant areas, et cetera? Could we be better in purchasing everything from sheets to bed linen to small stuff? We are into a journey here, and hopefully we'll become slightly better and better every quarter. I don't know if that's the answer of your question, KG.
No, it is. I guess the, it's easier to see that you should be breakeven in this operation after Q2 than it was after Q1.
Sorry, once again.
No, looking at the full year, I guess it's easier to see that you should be around breakeven for this year. Than it was last year having the same kind of thesis after you slots you showed in Q1. I guess the seasonality is now playing in your favor.
Yes.
You're absolutely right.
Absolutely.
Yeah.
What I think is important here is that, of course, the inflation and is not supporting us in the rental cost here.
Mm.
For the hotels. I think if you look at the group result or which we normally work with in hotel operations, which means that the result before the interest rate and depreciation and rental costs, we are running a much more efficient operation this year than we did last year. Then of course, we have higher cost of our rental costs. Of course, that will hit us harder this year than it did last year. I think it's the same for everyone in this hotel business, not only us.
True. Just one final from me. Looking at the turbulence in the Swedish private residential property market, have you adjusted your own plans looking at, development projects, exploration projects, and similar kind of things?
Not, not in our books, so to say. Of course, with our priorities in SkiAB, the joint venture, it's fair to say that it will be a bit slower development when it comes to private housing this year and next year. There are other projects that are worked on in SkiAB that we hope to come back on. Nothing substantial in SkiStar too.
I think also we have had projects which was this quarter, for example, it came in some money from projects we started before a year and a half ago, and they were now handed out, and that gave us some good revenues. We have started some project which is ongoing. When you look into new projects, we also have the benefit that we could build, and we could also rent objects out instead of sell them. I think that's one of our strong, say, advantages we have in our business model. If the market isn't there, we can at least then rent the objects out. That's positive for us.
Still we haven't revised any areas more than we are working very hard also together with the each municipality with plans then, and zoning plans to be ready also when everything takes off.
Excellent. Thank you very much, and all the best out there.
Thank you so much.
Thanks.
The next question comes from Fredrik Lithell from Handelsbanken. Please go ahead.
Thank you. Just a few follow-ups. I think you described the property development revenues for the quarter, correct? That has sort of a long historic duration behind it before it shows up in the P&L here. Or is there something else in the property revenue for this quarter that I should be aware of? That's one of the things. Then I just want to confirm that you are now up and running with all the hotels you should be. Quarter on quarter, it's the same type of number of beds at the hotels. It sounded like Hotel Vemdalen was coming up to stream or was that something I missed there? Thank you.
If I start with the last question then. We acquired Vemdalsskalet in August, so it is not like for like until next.
Yeah.
quarter four. No, actually, first quarter next year, it will be like for like.
Yeah. Yeah.
Hovde Hotel we took over now in the mid of.
Just before the winter season.
Yeah. It will still not be, like for like in the hotels then. That's. We are.
Quarter-over-quarter, it will be similar. Q3 will have the same number of beds as you had in Q2.
Yes. Yes. Yeah, yeah. That's correct. That's correct. Yes, correct.
Okay. Okay. Then on the property development and the revenues, if Maybe you are repeating then, but if you could sort of explain a little bit the revenue boost you have there?
Exactly. For this current quarter in the first half year, the income in the property exploration is very much linked to the project in Hemsedal that I think Stefan mentioned briefly. There are four different stages of. Oh, yeah. You complete the project in four different stages, and now stage one with the first property owners have moved in in the quarter. We have the income and also the cost of exploration in the quarters. That's behind the, a bit inflated number compared to last year. Also we have some Vacation Club sales and that we've made continue with in all quarters. That's the.
Can I come with a follow-up then? Hemsedal, four different stages, and the first stage was now complete, and that triggered a revenue.
Yeah.
In the property development. Is the other three stages, are they coming, you know, on the back of this quarter or?
Yeah. They are all sold, and they will be handed over in July.
Next quarter.
Yeah. Yeah.
Next quarter will be stage two, and then, stage three and four will be, as Stefan said...
July, August.
July, August something.
Yeah. Yeah.
Okay. They are similar size as the first stage? Just so we know how to...
Yes. Yes, I would think so. It's nothing material for you to understand.
Okay. Perfect. Perfect. Thank you very much.
It's actually already booked and paid for.
Yeah.
Okay. Thank you.
Thank you.
Good luck, Anders.
Thanks, Fredrik.
As a reminder, if you wish to ask a question, please dial star five on your telephone keypad. There are no more questions at this time. I hand the conference back to the speakers for any closing comments.
A warm thanks for participating in the conference, and a warm thanks for also the questions which maybe also helped others on this call to get some clarification on where we are. We are really glad for the result we have presented for this quarter and also for the outlook we have coming forward. Wish you all a good week and also a happy Easter, and hope you will spend the time at the SkiStar resorts. Thank you.