Lenzerheide Bergbahnen AG Presents Solid Financial Results For 2019 - 20

Lenzerheide Bergbahnen AG achieved a profit of CHF 244'744. As a result of the shortened winter season due to the COVID-19 pandemic, traffic revenue fell by 4.5%, and first-time entries for Arosa Lenzerheide by 13.2%. With a view to the still successful summer business as well as the record-breaking sales and guest numbers up to mid-March 2020, LBB AG speaks of a solid business result.  

"We got away with a painful, but not too black eye," writes Peter Engler, CEO of Lenzerheide Bergbahnen AG (LBB AG), in the 2019/20 annual report. The figures confirm his assessment: despite the shortened winter season due to the official closure of all snow sports areas on March 13, 2020 due to the COVID-19 pandemic, LBB AG achieved a profit of CHF 244,744. Traffic revenue fell by 4.5% to CHF 26.27 million compared to last year's record turnover. 

The Arosa Lenzerheide snow sports area recorded a decrease of 13.2% in the number of first entries (Skierdays) in winter 2019/20. Operating income fell by CHF 2.06 million compared to the previous year, while operating expenses also fell by CHF 0.93 million. This is primarily due to savings in the personnel area and corresponding short-time working allowances from the federal government. EBITDA fell by 4.4% to CHF 10.04 million, which corresponds to an EBITDA margin of 33.12%. 

Strong online business

The 2019/20 winter season ended abruptly and around a month too early due to official instructions. The fact that the business result turned out to be positive is mainly due to the good start to the season. Thanks to good weather conditions and support in the area of ​​technical snowmaking, record-breaking sales and guest numbers were achieved, especially during the Christmas holidays and in February 2020. In addition, the summer of 2019 also made a corresponding contribution to annual sales with a traffic revenue of over CHF 2 million, despite the mixed weather conditions. 

The introduction of dynamic prices three years ago and the associated strengthening of online sales have proven their worth for the mountain railways in Arosa Lenzerheide. In the 2019/20 financial year, more than half of the day and multi-day tickets were sold online. This corresponds to a volume of around CHF 13.5 million. 

Investments in modern snow groomers

In view of the consolidation phase that began two years ago, LBB AG did not focus on any investment-rich projects in the 2019/20 financial year. In addition to the optimization of the snow-making system on the west side and new systems in the Auarara Kinderland, an order for an extensive renewal of the snow groomer fleet over the next three years was placed in the 2019/20 financial year. A hybrid snow groomer “PistenBully 600 E +” will be preparing part of the slopes in Arosa Lenzerheide as early as the 2020/21 winter season. 

General assembly in a modified form

The current situation and the “Ordinance 3 on Measures to Fight the Coronavirus” issued by the Federal Council have prompted the Board of Directors of LBB AG to hold the General Meeting on September 25, 2020 in a modified form. This year's AGM is taking place in a closed setting to protect shareholders and employees without physical participation. The shareholders can only exercise their rights by issuing instructions to the independent proxy. All shareholders will receive detailed information in the information letter sent today.  

In addition to the agenda for the business results, the election of the Board of Directors is the focus of this year's General Meeting. After the incumbent Chairman of the Board of Directors, Christoph Suenderhauf, decided in mid-March 2020 not to run for the renewal elections, Felix Frei was nominated by the main shareholders of LBB AG as the future Chairman of the Board of Directors. The other members of the Board of Directors stand for re-election - unless they have been determined by delegation. These are Aron Moser, Alois Bearth, Marcus Lenz, Ernst Senteler, Thomas Vogt and Christoph Brasser, as representatives of the Churwalden Alpine Cooperative.