2022 Financial Year Began Hoher Kasten Revolving Restaurant And Cable Car - ‘Back To Normal’

The 2022 financial year began for Hoher Kasten revolving restaurant and cable car AG (HKDS) with the pandemic restrictions that were still common a year ago. After an inspection break that was extended to two months, the box railway only started the summer season in mid-April. Thanks to the beautiful summer weather, 199,000 frequencies resulted at the end of the year, which led to a total income of CHF 2,784,989. The company thus achieved an EBITDA of CHF 921,452. After posting write-downs of CHF 985,569, HKDS AG reports a loss for the year of CHF –92,781. The main reasons are the extraordinarily high costs for track maintenance and staff.

Brülisau The Hoher Kasten revolving restaurant and cable car AG (HKDS) is on the way back to normal operations after the exceptional years caused by the pandemic. The years with decreed closures and restrictions were cleverly used for extensive construction work on the summit. In the past year, operations for the inspection were suspended for two months - twice as long as normal. It is gratifying that 199,000 people could be transported despite the longer maintenance period. That's just over 4,000 fewer frequencies than the average of the three years before the pandemic. The recovery of the cable car frequencies took place in step with the other cable cars in the Alpstein.

With lift sales of CHF 2,344,907, 93% of the average for 2017-2019 was achieved.
The previous year's sales were exceeded by CHF 486,654. The average revenue per frequency fell from CHF 12.71 to CHF 11.78, as trips with discounted combined offers (breakfast buffet) and free trips for children increased significantly.

Ancillary income increased by CHF 166,815 or 59% compared to the previous year, which is even 14% higher than in 2017-2019. The main reason for this is the turnover-based rent for the revolving restaurant and the newly introduced parking fees.

Personnel expenses increased massively by 24% to CHF 1,024,573 and were thus 21% above the average value for the years 2017-2019. There are various reasons for this significant increase: Another employee was trained as a technical manager, which is always paid full wages. When I was newly hired in marketing, there were overlapping workloads. The consulting effort at the checkout increased significantly. More and more employees have to be deployed at the checkout for information and guest advice. Likewise, more work had to be done for parking lot instructions and support at the parking meters as well as for additional evening trips at events in the revolving restaurant. These additional expenses, together with structural wage increases, will mean that personnel expenses will also be at a similar level in 2023.

Material expenses increased by CHF 166,080 or 25% and were thus 19% higher than in 2017-2019. This jump is due to the maintenance costs for the lift facilities: At CHF 230,359, these were three and a half times higher than in the previous year (CHF 63,898) or over the period from 2017-2019 (average CHF 63,002). At CHF 139,155, marketing costs were CHF 80,628 below the average for the years 2017 to 2019.

The EBITDA (earnings before interest, taxes, depreciation and amortization) was CHF 921,452 in 2022. In the previous year, this central value was CHF 641,142, and the average for the years 2017-2019 was CHF 1,361,951. Without the extraordinarily high maintenance costs for the railway system, this value would be around CHF 167,000 higher in 2022.

The operationally necessary depreciation amounts to CHF 980,000. The Board of Directors decided to write off the full amount, despite the fact that this resulted in an annual loss of CHF 92,781.

The Board of Directors of HKDS is not entirely satisfied with the result. It would have been nice to have a brilliant result for the years 2017-2019 as soon as possible. The result can be clearly justified. However, certain costs are structural, which means that they will reappear in the years to come. Those responsible assume that the box railway will not be able to avoid significant price adjustments from next year, unless the cost and price structure can be fundamentally corrected.

On the other hand, the free campaign for children will continue. Children up to their 16th birthday can also ride the cable car for free this year. This should enable families with children in particular to have an affordable mountain experience. The offer also applies to school classes and youth groups. The only condition is that an adult and paying person is present.