65th General Meeting Of Weisse Arena AG Held
he 65th Annual General Meeting of Weisse Arena AG took place in almost wintery conditions. Over 600 people gathered at 2,252 m above sea level on the Crap Sogn Gion, including shareholders, employees, members of the Board of Directors and media representatives.
Reto Gurtner, President and Delegate of the Board of Directors, and Beno Suter, Head of Finance, provided insights into the 2023/24 financial year. Current and future major projects were presented by the two members of the Executive Board, Alicia Martinez and Reto Poltera. The meeting also included a thank you and farewell to Martin Hug, who is stepping down from his position as Mayor of Flims at the end of the year.
Management report for the 2023/24 financial year
Reto Gurtner, Chairman and Delegate of the Board of Directors
"The year 2023 was a year of upheaval for the Weisse Arena Group. In the midst of many changes, we replaced our management team over the course of the fall and continue to work on becoming a competence-led unit. This transformation is crucial to ensure the future success and sustainable development of our company. The Weisse Arena Group, with its strong LAAX brand, stands for innovation, sustainability and the highest quality in the tourism and leisure industry. This change to a competence-led organization is a natural evolution in our efforts to always offer the best services and experiences for our guests.
A winter marked by change
In the course of these changes, we had to adapt our working methods, our structures and our way of thinking in order to meet the new requirements - and all this during the current winter season. Despite the mostly bad weather conditions in the second half of the season from mid-February, there was again an increase in first-time admissions: Overall, we recorded a moderate increase in first-time admissions to 1,028,134 (previous year 1,015,581), which is satisfactory. However, the record figure from 2021/22 could not be reached. The increase in first-time admissions is entirely due to the very good winter conditions up to mid-February. There was also a pleasing increase in overnight stays of 28% to 158,806 over the entire financial year (previous year 114,189).
In December 2023, we reached another milestone with the world first FlemXpress and we were able to put the first two sections of the new fully automatic gondola lift into operation. From then on, guests could travel from Flims to Foppa and then on to Startgels at the push of a button. This new technology posed a major challenge for our on-site employees and for the companies involved in the project and a lot of time and effort was invested in fine-tuning the complex processes in order to further optimize the experience for our guests and internal processes. Numerous training courses and further education courses were carried out in cooperation with our partners SISAG and Bartholet Maschinenbau AG to ensure that our employees have the latest knowledge and the necessary skills to ensure the smooth operation of this innovative cable car system.
Meanwhile, the new Freestyle Academy was built in Laax Murschetg. After the tennis hall built in the 1970s, which had housed the Freestyle Academy since 2010, was demolished, the Freestyle Academy found a temporary new home in a circus tent. However, it was clear that the Freestyle Academy should return to Laax Murschetg. The proximity to the mountain and the snow parks as well as the combination of on- and off-snow training make this location special. It is also undisputed that the Academy greatly enhances the entire range of leisure activities around the Rocksresort. At 2000 square meters, the new hall is significantly larger than the old hall at 1300 square meters. It is intended to reflect the change and progress that freestyle sport has undergone in recent years. The underground location of the new hall posed a challenge during construction and especially during the delivery of the building materials, which largely came from the old hall. Here, too, in the spirit of Greenstyle, everything possible was recycled and so we were able to proudly present our new freestyle cathedral to our guests at the beginning of August.
Improvement in operating performance (profitability) despite decline in sales
Overall, earnings remained at a high level, but the previous year's figure could not be reached despite the initial consolidation of Larnags AG. The real estate transaction carried out in the last financial year led to the high earnings base of the previous year. Even the initial consolidation of Larnags AG could not compensate for this one-off effect. The focus and orientation on reducing complexity and optimizing processes in the catering sector led to a disproportionate decrease in costs in relation to earnings due to operational optimizations for the existing number of guests. Because no new apartments were for sale in the rocksresort in the past financial year, this business could not contribute to the above-average real estate earnings, as in the previous year.
The consistent focus on operating performance had a positive effect on the expense side, despite pressure to increase prices. Personnel costs rose at group level due to the initial consolidation of Larnags AG. In the existing group companies, we achieved savings in practically all areas compared to the previous year. The profitability and cost-oriented strategy adopted in the past financial year led to a turnaround in the EBITDA margin and EBITDA. Despite practically non-existent sales business in the past financial year at Rocksresort, operating EBITDA was improved by CHF 5.9 million to CHF 24.0 million or 20.7% (previous year CHF 18.1 million or 16.4%).
Gratitude and confidence
I would like to thank all employees who helped us to bring the last year to a successful conclusion. Their commitment and dedication were remarkable. Without the hard work, passion and dedication of each and every one of them, it would not have been possible to overcome the numerous challenges and implement the many changes. I would particularly like to highlight the flexibility and adaptability that many of them have shown. It is their willingness to always give their best and to continuously develop that makes us strong. In times of change, it is important to be open to new things and to be able to adapt quickly to changing conditions. Our employees have proven that they have these skills and that fills me with pride and confidence for the future. Together, we can achieve anything we set our minds to.
Outlook
Our journey is not over yet and I am convinced that with a strong team we will create a successful future. The Weisse Arena Group has always distinguished itself through its innovative strength and pioneering spirit. I am sure that we will continue to set new standards in the future. We will continue to focus on our core values of freestyle, lifestyle and greenstyle, which set us apart from others. In the coming years, we will continue to invest in our infrastructure and services to offer our guests unparalleled experiences. At the same time, we will expand our sustainability initiatives to do our part to protect the environment and promote sustainable development. Our vision is to establish LAAX as a leading destination in the field of sustainable tourism and leisure activities.
Another important aspect of our future direction will be the intensification of cooperation with local and international partners. Strong partnerships will enable us to expand our offering, exploit synergies and further strengthen our position in the market. We will also focus more on promoting young talent and expanding training programs in order to optimally support the next generation of specialists. Finally, I would like to stress that I firmly believe in our potential and our ability to achieve great things together. With the commitment of all our employees, we will take the Weisse Arena Group to new heights and shape a successful and sustainable future."
Interview with Reto Gurtner
“Nothing is as constant as change” – Heraclitus of Ephesus
"The past few years have shown worldwide that change is the only constant that companies have to face today. Technological progress, changing customer needs, geopolitical uncertainties and many things that are unpredictable require a high level of adaptability from organizations in all sectors. The Weisse Arena Group, as a tourism company, is also confronted with these challenges. Therefore, breaking new ground, optimizing processes and strengthening the corporate culture is mandatory in order to be prepared for the future and to grow sustainably.
The Weisse Arena Group is known for innovation and disruptive thinking. What vision is currently guiding the Weisse Arena Group and what development is it striving for?
In the coming years, we will have to overcome various challenges in terms of organization and development. One of the main goals of the Board of Directors is to reduce the complexity of the management structure that has built up in recent years and to make it more transparent and agile in order to make the best possible use of the available resources. In principle, however, the Weisse Arena Group is optimally positioned with fully autonomous subsidiaries such as mountain railways, accommodation, catering, sports equipment rental and leisure activities. Now it is a matter of developing and constantly improving the quality of the offer created at all levels through good cooperation and excellent hosts."
How do you handle winter and summer business?
"Winter remains a central part of the Weisse Arena Group, as we have one of the largest connected winter sports areas in a breathtaking natural setting, with around 80 percent of the slopes above 2000 meters. Summer does offer potential, but it is important to understand that a level of guest volume like in winter is not realistic. In summer there are a variety of alternative activities, such as biking, swimming, golfing, hiking, which do not require a cable car. It is unlikely that guests will go up the mountain almost every day during their stay in summer, as is the case in winter. Downhill mountain biking also has only limited potential, as a massive expansion of the trail infrastructure would be required, which is hardly feasible from a socio-political perspective in today's world. But in summary, we are aiming for a balanced offer that corresponds to the seasonal guest volume and that makes optimal use of the unique nature, diversity and hospitality of the destination in both winter and summer. In one sentence: we simply want to offer guests an unforgettable experience.
The second stage of the FlemXpress is about to open. Many people are looking forward to it, but there has also been criticism that people are worried that the Segnesboden nature reserve will be overrun. Do you agree?
We are facing an exciting time full of opportunities with the second stage of the FlemXpress set to open next winter and the final stage to Ils Cugns in summer 2025. Regarding the concerns, we are confident that together with the support of our guests and locals we will find a solution that takes into account both the development and protection of the UNESCO World Heritage Site."
What is the idea of building a cable car to Elm in Glarus, and are there any other plans?
"The aging Crap Masegn - Fuorcla - Vorab gondola will be replaced by a new 8-seater gondola in the 2025/26 winter season. This means that we are likely to be one of the most modern ski resorts in the European Alps in terms of our rail infrastructure. We are also constantly examining new ways to develop the destination as a year-round destination. Ideas that are being discussed include connecting to the public transport network of the Rhaetian Railway and the Glacier Express from Versam to the Prau la Selva sports center with a simultaneous connection to Flims and Laax. Another idea or vision is the connection from Elm, Tschentelnalp to La Siala with a connection to the new FlemXpress cable car in Nagens. The construction of these cable cars would be technically feasible, but the crucial question is whether environmental protection organizations and the population would support this project. Mind you, the Elm project would mean a substantial economic and tourist upgrade for the Glarus South region."
What motivates you personally in your role as President of the Weisse Arena Group?
"For me, my work is a passionate commitment, a passion, and not just a job. I am rooted in this region and my goal is to make it even better known internationally in the future and to promote it in general as far as I can."
Current annual report of Weisse Arena AG here
