Lenzerheide Bergbahnen: Best Company Results Ever
Lenzerheide Bergbahnen AG (LBB AG) is closing the anniversary year of the 10-year existence of the Arosa Lenzerheide ski area connection with an outstanding result. The company achieved record sales of CHF 39.1 million and was able to increase EBITDA to CHF 13.9 million. A profit of CHF 1.29 million was reported and a dividend is to be paid for the first time in 9 years.
10 years ago, on January 18, 2014, the opening of the Arosa Lenzerheide ski area connection marked the end of a major investment phase to ensure the future viability of Lenzerheide Bergbahnen AG (LBB AG). The anniversary year is now a clear example of how this has more than proven itself. Since then, Arosa and Lenzerheide have shared the largest connected ski area in Graubünden and are number 2 in Switzerland in terms of the number of skiing guests. It was the end and high point of a phase that catapulted both ski areas of Arosa and Lenzerheide into a new league. "The continued stable, good annual results, even in difficult years, show how sustainable these investments and the connection are. Both sides benefit significantly from this situation," says Felix Frei, Chairman of the Board of Directors of Lenzerheide Bergbahnen AG.
According to the climate bulletin, this winter Switzerland recorded the mildest temperatures since measurements began, but the winter was generally rainy. With the efficient use of artificial snowmaking and the larger amounts of snow on December 1st and 2nd, 2023, the conditions were laid for a great start to the season. "The joy of skiing was palpable and, especially in the months of December and January, there were pleasingly high visitor frequencies," says a delighted Thomas Küng, CEO of LBB AG.
Encouraging figures
Total sales in the 2023/24 financial year rose by 7.1% year-on-year to CHF 39.1 million (previous year: CHF 36.5 million). On the expense side, the early opening of the season in combination with higher energy and water prices and the preparation of more slopes resulted in additional expenses. Personnel costs also increased due to the inflation compensation granted. EBITDA (earnings before interest, taxes, depreciation and amortization) rose by 12.4% year-on-year to CHF 13.9 million (previous year: CHF 12.4 million), a new all-time high. After deducting depreciation, the result is a profit of CHF 1,288,937 (previous year: CHF 1,203,046).
In winter, 1.4 million guests (first-time visitors) visited the Arosa Lenzerheide ski area, which is the second best figure after the 2021/22 winter (1.43 million). In summer 2023, around 3% fewer guests (195,000) visited the mountain railways in Lenzerheide than in the previous year.
For the third year in a row, LBB AG can report an excellent financial year and record figures. "Closing three very different years in a row with new record figures is only possible with a very good team. The employees, the partners in the destination and our loyal guests deserve a big thank you," says Thomas Küng.
Outlook
LBB AG is aware that these results cannot be taken for granted and that the coming years will also bring challenges. Further investments and efforts are necessary, for example in snow security, product development and quality improvements on the mountain. LBB AG also sees development potential in cooperation with the destination and service providers, for example in better coordinated season openings and ends or the joint development and implementation of innovative concepts and projects. "A strong partnership between all key service providers is crucial for the mutual success and attractiveness of our region. We must never stop getting better," says Felix Frei.
On April 1, 2024, not only did the winter season on the west side officially end, but an era also came to an end. The last rides of the Stätzertäli chairlift took place. It is currently being replaced by a new transport system from Leitner. "We are building the most sustainable replacement system in the Alpine region in terms of construction and operation," says Thomas Küng happily. The garage and most of the supports and foundations of the current transport system will be upgraded, renewed and retained as far as possible. A comfortable 4-seater chairlift with hoods and a transport capacity of 1,800 people/h will be built. The drive is installed as a direct drive without a gearbox, which consumes around 10% less energy. The speed will automatically adjust to demand. The mountain station and the garage will be the locations of photovoltaic modules. The waste heat from the system will be used to heat the rooms at the mountain station.
The replacement of the Stätzertäli chairlift is the largest investment in the 2024/25 financial year, costing over CHF 8 million. In addition, further investments are planned in snowmaking infrastructure, piste corrections, automation of avalanche protection, renovation of the Piz Scalottas mountain restaurant, the Steinwichtelweg on the Rothorn and photovoltaic systems.
General Meeting on 27 September 2024
The 19th Annual General Meeting of LBB AG will take place on Friday, September 27, 2024, in the multi-purpose hall at the Lenzerheide school. At the meeting, the Board of Directors will propose a dividend in the form of a repayment from the capital contribution reserves. "When, if not now, is it appropriate to allow shareholders to participate in the company's success again in an appropriate manner," Felix Frei is convinced. Shareholders will receive written instructions on how to exercise their voting rights with the invitation at the beginning of September 2024.
Annual Report here
