Billion explosions for Thun FinanceAffairs.com

For 2023, Olav Thon Holding had revenues of NOK 9.15 billion and pre-tax profits of NOK -2.27 billion. The result fell from 1.1 billion plus in 2022, while turnover increased from 8.18 billion the previous year.

Changes in the value of investment properties and financial instruments particularly affect the accounts. In total, NOK 3.47 billion values ​​disappeared throughout last year, compared to a decrease of NOK 218 million in the previous year.

The group, which mainly consists of the hotel chain Thon Hotels and the real estate company Thon Eiendom, has equity of NOK 33.8 billion, compared to NOK 25.3 in the previous year. The capital stake in the group is 60 percent.

Increase in hotels and properties

The hotel portfolio includes 94 hotels in Norway, Belgium and the Netherlands until 2023, and just over 14,000 rooms.

“As a major player, Thon Hotels is influenced by developments in the Norwegian hotel market. Against the backdrop of ongoing economic uncertainty both in Norway and internationally, the hotel market is expected to be stable or rather weak in the future.

Thon Eiendom, which includes housing, commercial real estate and shopping centres, generated rental income of NOK 3.1 billion, up from NOK 2.75 the previous year. This company is listed on the Oslo Stock Exchange, and is up 6 percent through 2023. In comparison, the stock is up 23 percent so far this year.

“The commercial real estate market developed weakly in 2023, and the sharp increase in financing costs led to a significant decline in demand for commercial real estate,” the company wrote.

“It is expected that the Group's strong market position and financial position will be able to contribute to the continued development of good operating profits in the future, despite significantly higher interest rates and continued uncertainty about economic development.”

Olav Thon Holding is owned by the Olav Thon Foundation.