Jungfrau Lifts Group Almost Hits Break Even

In an ad hoc announcement in accordance with Art. 53 of the Listing Rules, Jungfraubahn Holding AG announced that it was able to report an almost balanced result in the 2021 financial year with an annual loss of CHF 0.2 million. Overall, the Jungfrau Railway Group generated operating income of CHF 130.8 million, which corresponds to an improvement of CHF 5.1 million compared to 2020. The increase in EBITDA by 29.1% to CHF 28.7 million is pleasing. This was achieved even though the global pandemic also had a strong negative impact on the 2021 financial year and international travel, which is so important for the Jungfrau Railway Group, largely failed to materialize. With the war in Ukraine and its drastic consequences for the population, the world situation remains very uncertain. 

 

In the 2021 financial year, there were again largely no guests from the distant markets due to the travel restrictions in many places. Group business, which has slumped since mid-March 2020, and intercontinental tourism as a whole have only recovered slightly so far. Despite the difficult market environment, the Jungfrau Railway Group generated an EBITDA of CHF 28.7 million in 2021.

Operating income was 130.8 million francs, which corresponds to an increase of 5.1 million francs compared to the previous year. Compared to the record year 2019, the operating income for 2021 is CHF 92.5 million lower. Traffic revenue amounted to CHF 78.7 million and was therefore CHF 3.0 million higher than in the previous year. While traffic revenue increased in the "Jungfraujoch - Top of Europe" and "Mountains Experience" segments, a decline of CHF 1.9 million was recorded in "Winter Sports". Traffic revenue is still more than 50% below the pre-crisis level.

austerity measures continued

The austerity measures initiated after the outbreak of the crisis continued in 2021. It was thus possible to reduce operating expenses by a further CHF 1.4 million to CHF 102.0 million. This means that the expenses are 15.3% lower than in the last year before the crisis, 2019. This is remarkable, since business activities were expanded as planned in December 2020 with the Eiger Express, the multi-storey car park at the Grindelwald Terminal, a new shop and four additional restaurants. In 2021, too, a large part of the workforce was on short-time work. That was and is key to securing jobs in the region and restarting operations if there is a corresponding demand.

Depreciation increased by CHF 6.2 million to CHF 39.6 million due to the full commissioning of the V-Cableway project. In the year under review, the Jungfrau Railway Group applied for hardship support for parts of the business that were particularly hard hit by sales losses. The hardship support ordered by the canton in the amount of CHF 11.6 million is reported as extraordinary income. Finally, after taxes, there is an annual loss of -162,000 francs (in 2020 it was -9.6 million francs).

The consolidated balance sheet as of December 31, 2021 shows equity unchanged at CHF 597.0 million. This corresponds to a very solid equity ratio of 72.9%. Liabilities of CHF 222.2 million include financial liabilities of CHF 135.0 million. Of this, only CHF 45.0 million (same as in the previous year) are interest-bearing bank liabilities of Jungfraubahn Holding AG.

There is also a loan of CHF 6.1 million to finance the rolling stock of Bergbahn Lauterbrunnen-Mürren AG as part of the renewal of the Mürrenbahn. The remaining CHF 83.9 million are non-interest-bearing, mostly conditionally repayable loans from the public sector, in particular to finance railway infrastructure.

Jungfraujoch - Top of Europe

Despite the pandemic, the Jungfraujoch - Top of Europe remains the most important segment of the Jungfrau Railway Group. This is despite the fact that the negative effects of Covid-19 are greatest in this segment. The number of guests was 0.7% above the previous year but 65.4% below the last year before the crisis, 2019. Net sales rose by CHF 5.1 million or 7.4% to CHF 74.3 million. The missing guests from Asia could not be compensated by visitors from Switzerland, Europe and, in the second half of the year, from the USA and the Gulf States. At the EBITDA level, the result was CHF 6.6 million, which corresponds to an increase of CHF 3.5 million compared to the previous year.

adventure mountains

The experience mountains segment shows a pleasing result. Net sales increased by 21.4% to 20.5 million Swiss francs and EBITDA by 55.6% to 9.1 million Swiss francs. The individual tracks developed differently. The Harderbahn was able to increase its frequencies by 36.1% and thus achieved the third-best result in its history. The Firstbahn also achieved a significant increase in excursion traffic. The Mürrenbahn saw a decline in frequencies, which is partly due to the two interruptions lasting several weeks due to renewal work.

winter sports 

The winter sports segment did not record any increase. At 898,300, the number of skier visits (first entries) in the entire Jungfrau Ski Region (cooperative product in which the Jungfrau Railway Group holds a stake of more than 60%) was within the range of 2020. The fact that gastronomy in the 2020 /2021 had to be reduced to a take-away offer, significantly dampened demand in winter sports. At CHF 29.4 million, net sales were 0.9% below the previous year. At the EBITDA level, the winter sports segment achieved CHF 2.2 million, which corresponds to a decrease of CHF 1.5 million compared to the 2020 financial year.

investments

Overall, the investment volume of the Jungfrau Railway Group last year was CHF 65.3 million. CHF 27.9 million of this went to the V-Cableway project. The investments in the generation project could thus be completed. These amount to a total of CHF 354 million and are therefore around 10% above the original plan. More than 5% of this is added value. In addition to the core elements of the Eiger Express, Grindelwald Terminal and multi-storey car park, the V-Bahn project also includes the previously implemented renewal of the rolling stock on the Wengernalp and Jungfrau Railways.

The second major project in the Jungfrau Railway Group is the renewal program for the Lauterbrunnen-Mürren mountain railway, which is being financed by the Canton of Bern as part of the traffic that is entitled to a subsidy. Investments of a good CHF 50 million are planned for the entire renewal of the Mürrenbahn. In 2021, CHF 15.3 million was invested in replacing the rolling stock, renewing the route, expanding the station and the Grütschalp workshop and the Winteregg station. The comprehensive renewal is expected to be completed by 2023.

The renovated station hall with track 3 on the Jungfraujoch was put into operation. In addition, the renovation of the roof of the glacier restaurant started. 7.9 million francs were invested in these two investment projects. The Wengernalpbahn procures new rolling stock for the "Wengen Shuttle". In particular, guests on the journey from Lauterbrunnen to Wengen will benefit from this. In 2021, advance payments totaling CHF 5.2 million were due.

outlook

While the recovery of the markets was delayed by around half a year due to the corona-related travel restrictions, the protective measures in Switzerland and some European countries were largely lifted due to the often mild course of this new variant. This is an important step towards normalization. However, the recovery in travel activity is lagging behind.

The further development of the pandemic and the currently tense world situation due to the warlike events in Ukraine will affect the business of the Jungfrau Railway Group in the current year. The consequences cannot be estimated at this time.

The pandemic has accelerated the shift from group to free independent traveler (FIT) business. The associated needs for more comfort, faster travel and orderly processes can be met thanks to the V-Bahn at the Eiger Express, the new transfer situation in the Grindelwald Terminal and at the Eigergletscher. Based on the experiences of the first year of operation, the visitor guidance, the signage and the digital guest guidance were further optimized. In this way, the operation is optimally prepared for the start of normal operation in the future. In addition, with the good connections of the V-Bahn to the public transport network, the reluctance of guests to use public transport as a result of the pandemic can be counteracted.

The products of the Jungfrau Railway Group are based on an intact natural and social environment. This is not the only reason why the company attaches great importance to sustainable development. Therefore, the board of directors and the management have defined the sustainability goals to be worked on based on the Sustainable Development Goals (SDGs for short). The associated implementation will take place step by step and will also be reflected in the reporting, as is already the case in the current annual report.

Annual report and motions to the AGM

The General Assembly of Jungfraubahn Holding AG will be held in Interlaken on May 16, 2022. For the first time in two years, this will take place again with the shareholders physically present. Due to the continuing challenging situation, the Board of Directors proposes not paying a dividend.

As the successor to the longstanding Board President Prof. Dr. Thomas Bieger is proposed to Heinz Karrer for election as the new President. Catherine Mühlemann and Thomas Ruoff are to be newly elected to the Board of Directors, as Jungfraubahn Holding AG announced on February 24, 2022.

The Jungfraubahn Holding AG annual report for the 2021 reporting year was created as an online version. The online annual report is published under the following link: