Arosa Bergbahnen Reports Outstanding Results For Financial Year 2023/24

In the anniversary year of the ski area connection, the Arosa Bergbahnen shines with an outstanding business result in 2023/2024. The company increased sales to an all-time high of CHF 36.223 million and achieved the best result in the company's history with an EBITDA of CHF 13.489 million. Arosa Lenzerheide once again benefited from its snow-sure altitude and an excellent performance in the first half of the winter season. The reported annual profit is CHF 1.970 million.

In summer 2023, 153,000 guests visited the mountain railways. In line with expectations, the number of first-time summer visitors is stabilizing at this level after the record numbers in the Corona summer years. In the main winter business, the sometimes heavy snowfall in November and December and the cold windows for the efficient use of artificial snowmaking promoted the rapid development of the ski area.

Skiing on the Hörnli was possible from November 11, 2023. The full range of snow sports with all slopes and winter hiking trails was available until the holidays. Excellent winter sports conditions prevailed with natural snow slopes open throughout until the end of the season on April 14, 2024. The total of 1.403 million first-time winter skiers in Arosa Lenzerheide are 9.4% above the previous year and only 1.8% below the previous record from winter 2021/2022, but a remarkable 14.4% above the 5-year average before Corona.

Chairman of the Board of Directors Lorenzo Schmid sees several reasons for the positive development. "One of these is the dynamic investment activity of recent years, which has had a positive effect, as the company was also able to realize well-known projects in the performance development totaling CHF 7.8 million in the reporting year. These include the new construction of the après-ski bar KuhBar at CHF 3.7 million and purchases for the piste and snowmaking infrastructure amounting to CHF 2.0 million." The positive consumer sentiment of guests in mountain gastronomy and the high product and service quality, ensured by committed employees, also shaped this extremely successful 2023/2024 winter season.

Best result in the company’s history

At the end of the financial year ending April 30, 2024, the mountain railway company achieved total sales of CHF 36.223 million, more than ever before in the history of Arosa Bergbahnen AG. All business areas are contributing to this sustained robust development in sales, which Lorenzo Schmid is particularly pleased about.

The increase in traffic revenue of CHF 3.252 million, 94% of which comes from the main winter business, is significant. Mountain gastronomy increased sales by a further 5.2% compared to last year's peak figure, which the Chairman of the Board of Directors commented on as follows: "This excellent result is achieved, among other things, with the new KuhBar, the well-known après-ski bar near the Tschuggenhütte. Guests have enthusiastically received the event location, which opened on December 2, 2023."

The Mountain Lodge accommodation facility, which targets young families, groups and school camps, has a consistently high occupancy rate and also achieved record sales. In return, higher costs are incurred for the provision of services. Personnel expenses have risen due to wage adjustments and the comprehensive range of services in 10 ½ months of operation. The general price increases in maintenance and energy are significant in material costs. Nevertheless, an outstanding business result of CHF 13.489 million can be reported at EBITDA level.

Chairman of the Board of Directors Lorenzo Schmid also classifies the top result in the anniversary year of the ski area connection as a success of the merger of the two ski areas of Arosa and Lenzerheide on January 18, 2014: "On both sides of the mountain, the qualitative development of the range of services was continuously implemented. The two traditional winter sports resorts, each with its own character and different strengths and positioning, impress with a strong joint product on the mountain."

Even after extensive additional write-offs, the general meeting was still able to present an impressive annual profit of CHF 1.970 million. The EBITDA ratio of 37.2% is an excellent figure for a mountain railway company with its own mountain catering and accommodation operations. The reported cash flow is a formidable TCHF 12,199 million and accounts for 33.7% of sales. Despite the brisk investment activity, debts have been reduced.

Consistently high investment volume on the mountain

In the new 2024/2025 financial year, CHF 8 million is again earmarked for performance development on the mountain. "The healthy financial situation enables the Arosa Bergbahnen to actively continue the performance development on the mountain," says Managing Director Philipp Holenstein with confidence as he looks ahead to the new financial year." The main investment projects are as follows:

• New control system for the Carmenna chairlift (investment CHF 1.7 million)
• Terrain/piste corrections and replacement snowmaking systems at Tomeli (investment CHF 1.5 million)
• Terrain/piste correction Carmenna mountain station with replacement snowmaking system (investment TCHF 400)
• Avalanche protection at Hörnli/Plattenhorn with blasting masts, 2nd stage (investment TCHF 670)
• Replacement of two snow groomers (investment CHF 1.0 million)
• Photovoltaic systems on company-owned properties/buildings (investment CHF 170,000)

The company is assuming solid sales growth in its multi-year planning. "This will enable us to get ready for the major investment currently being planned in the Hörnli area," says Philipp Holenstein. The Board of Directors has voted in favor of simultaneously replacing the 6-seater gondola lift from 1986 and the 4-seater chairlift from 1994 with a new, modern 10-seater gondola lift on the existing route and a parallel new 6-seater chairlift with a new valley station location in Schönboden. The construction windows are expected to be in the summer months of 2026 and 2027.

Managing Director Philipp Holenstein also points to further development projects in the existing ski area perimeter: "With the partial revision of the local planning for the Arosa East snow sports area approved in December 2023, the conditions in the land use planning have been created to make the part of the ski area around the Tschuggen more attractive in the coming years. The first implementation phase is planned for 2025."

Further information about the mountain railway company can be found at the general meeting of Arosa Bergbahnen AG on September 28, 2024. Shareholders will receive written instructions on how to exercise their voting rights with the invitation at the beginning of September.