Billion deficit for Thon Holding – E24

The money comes out of Olav Thon’s investment company, Thon Holding. Profit before tax ended at minus NOK 1.3 billion in the first half of the year, down from a positive result of NOK 1.2 billion in the same period last year.

The company, which is ultimately owned by the Olav Thon Foundation, owns both Thon Hotels and the shopping center business located in Thon Eiendom. The company owns, among other things, the Nordby shopping center across the border in Sweden and the Strømmen shopping center in the municipality of Lillestrøm.

During the first half of the year, revenue fell from NOK 745 million to NOK 2.5 billion. At the same time, the result is deducted from changes in value and depreciation for a total of NOK 1.5 billion.

Steep decline for Swedish shopping malls

This is partly because the company has increased its provisions for losses on the grounds that shopping centers have been partially closed due to the corona pandemic.

“The group’s real estate business is affected by the fact that the tenants of the shopping centers had to go out of business, and the group’s shopping centers in Sweden have lost Norwegian customers as a result of travel restrictions,” the company writes. in the report.

Here, the company emphasizes that limited-time rent reductions have also been granted for some tenants who were severely affected by the pandemic.

In total, shopping malls had a turnover of NOK 5.4 billion in the first half of the year, compared to NOK 7.4 billion in the same period last year. Sweden’s shopping malls, in particular, contribute to this.

“Store sales in Sweden are greatly affected by the fact that the border with Sweden since March has been effectively closed to Norwegian customers,” the company writes in the report.

Swedish shopping centers had a turnover of NOK 2.5 billion, compared to NOK 4.7 billion in the same period last year.

Hotels cut billing in half

Thon Hotels has also been hit hard by the crisis, in which several hotels were closed for a longer period before the summer. Accommodation revenue at Thon Hotels was cut in half, from over NOK 1 billion to NOK 514 million.

Total operating income in the hotel area ended at NOK 1.03 billion, down from NOK 1.9 billion the previous year.

In addition to the crown crisis, Thon Holdings also suffered a foreign exchange loss of NOK 181 million in the quarter.

Net cash flow from operations was NOK 347 million in the quarter, down from NOK 653 million in the prior year.