Compagnie Des Alpes Financials: First Nine Months Of FY 2017/2018

Through the first 9 months of FY 2017/2018, consolidated sales for Compagnie des Alpes reached €648.9M, up by 6.1% on a restated basis and by 3.0% on a comparable scope basis.

Ski Areas: a positive season despite occasionally challenging weather conditions 

Ski Area sales for the 3rd quarter of FY 2017/2018 showed growth of 3.5% compared with the same period of the prior financial year, reaching €50.4M. This total includes the sale of a property in the 3rd quarter located in the Arcs ski resort, for €2.4M. If the impact of this sale were eliminated, sales would have been down slightly (-1.5%). As indicated previously, sales were penalized by the late positioning of the Easter school holiday and public transportation strikes, whereas in the 3rd quarter of the prior FY the more favorable school holiday calendar led to sales growth in excess of 30%. 

For the first 9 months of the financial year (i.e., more than 98% of the season), sales rose by 2.8% and, for ski lift ticket sales alone, the increase was +2.0%. The increase in the latter was driven by growth, for the third year in a row, in the number of visitors to the Group’s ski areas, as well as by an increase in the number of skier days (+0.7%) and in the average price per skier day (+1.3%). These performances were achieved despite weather conditions that were occasionally extreme (storms, cold temperatures, violent winds, high precipitation, rain), acting as a drag on resort operations that led to numerous days of full or partial closure of ski runs and lifts. 

Leisure Destinations: season off to a good start, driven in particular by investments of attractiveness 

Leisure Destination sales for the 3rd quarter of FY 2017/2018 were up by +2.9% (on a comparable scope basis) and reached €104.8M despite a high basis of comparison, as sales rose by +16.2% (on a comparable scope basis) in the 3rd quarter of the prior financial year. 

In total, for the first 9 months of FY 2017/2018, the Leisure Destination division saw sales increase by +5.1% on a comparable scope basis, driven by both an increase in visitors (+2.1%) and dynamic spend per visitor (+3.0%). The division benefited in particular from initiatives undertaken by the Group to develop business during the Halloween and Christmas periods, to reinforce and monetize its in-park offer and continue to improve the satisfaction of its customers. The Leisure Destination division also got a boost from investments made by the Group, aimed at both improving the appeal and the capacity of its parks via the addition of new equipment and increasing its capacity to accommodate overnight visitors to Parc Astérix. Over the period, this park saw double-digit growth in sales, as did the Walibi Belgium and Walibi Rhône-Alpes parks. 

As for the 4th quarter – which accounts for 40% of the Leisure Destination division’s annual sales, given the lesser extendibility of the capacity of the various facilities during the summer months and the desire to maintain its Very High Satisfaction score with visitors at a high level, the Group expects this business to show less growth than that observed since the beginning of the financial year (barring any major unforeseen economic or weather events). 

Holdings and Supports: Integration of Travelfactory and success of the Jardin d’Acclimatation

For the first 9 months of FY 2017/2018, sales for Holdings and Support, which groups the distribution and consulting businesses, totaled €27.8M, versus €11.0M for the same period one year prior, thanks in particular to the integration of Travelfactory since January 1, 2018. 

Distribution sales for the period reached €24.8M and correspond to the margin or the commission on the packages sold. Most of these sales occur during the winter season.  

The consulting business continues to develop in China, in Russia, and in Japan, with two new contracts signed in the course of the 3rd quarter. In addition, the success of the Jardin d’Acclimatation since it reopened on June 1, 2018 illustrates the quality of the work accomplished by the teams of Compagnie des Alpes, in collaboration with the LVMH Group, on the transformation of this facility.