My Leukerbad AG: Positive FY 2023/24

My Leukerbad AG looks back on a successful 2023/24 financial year: It achieved a sales record for the fourth time in a row and experienced a successful winter season. With the Torrent Master Plan, the Torrent cable cars want to develop into an adventure provider and thus make an important contribution to the year-round strategy of the Leukerbad destination.

With a turnover of 28.9 million francs (including LLB bus operations), My Leukerbad AG was able to exceed last year's result by around 0.7 million francs. The company thus achieved a new sales record for the fourth time in a row. The result is due to the very good result of the Torrent cable cars (+10%) and the positive development of the three catering establishments Rinderhütte, Therme and Sportarena (+6.4%). While the cable cars were able to set a new record with 194,591 first-time entries in the 2023/24 financial year, entries at the Leukerbad Therme fell slightly to 331,803 (-5%). The reason for this was the renovation and the associated temporary closure of the thermal baths in autumn 2023.

For Roland Zegg, Chairman of the Board of Directors of My Leukerbad AG, it is clear that My Leukerbad AG is on the right track. "We have already achieved our goal of achieving a 20% increase in total sales by 2026 with the good result in the 2023/24 financial year (+22.9% compared to 2018/19). The establishment of the integrated operating company in 2017 was the courageous and right decision, and the development of the last few years impressively confirms this."

The Leukerbad destination recorded a slight decline in overnight stays compared to the previous year. However, with 725,103 overnight stays, the result was still 9% higher than in the pre-pandemic 2018/19 financial year. In addition to the temporary closure of the Leukerbad thermal baths, the shorter winter season with difficult weather conditions over Easter also contributed to this result.

My Leukerbad AG: Operating company develops positively

The Magic Pass remains the destination's most important product. In summer, Leukerbad is one of the top 3 destinations within the association and in winter, Magic Pass first-time entries on Torrent increased by a further 14%. With the introduction of the dynamic pricing model for the 2023/24 winter season, the digital sales strategy for the remaining mountain railway tickets has developed very positively: 34% of all tickets were sold online via the new web shop (compared to 6% in the previous winter). The Torrent ski area is supplementing the dynamic ski passes in the coming winter season with automatically included insurance. Guests thus benefit from insurance cover without a separate surcharge.

The positive business trend allows for an expansion of employee benefits. After employees were given an additional week of vacation two years ago, six new annual positions were created last year and fringe benefits were further expanded. "The appreciation of our 200 employees is the basis of our corporate culture. Thanks to improved conditions for employees, we have overcome the shortage of skilled workers," explains Urs Zurbriggen, CEO of My Leukerbad AG. "We pay out 11.7 million francs in wages annually and 90% of employees live in the Leuk district. This is a significant contribution to regional value creation."

Masterplan Torrent: promoting year-round mountain experiences

Since My Leukerbad AG took over the operation of the Torrent cable cars seven years ago, 15 million francs of the company's own cash flow have been invested in technical snowmaking, cable car technology and product development. This has enabled the tourist offer to be significantly improved, which is impressively reflected in the figures: since 2017/18, first-time entries have increased by 36% and the mountain railways' turnover has increased by as much as 75%. "The economic benefit of the Torrent cable cars for the entire region is now undisputed," says Christian Grichting, Chairman of the Board of Directors of Torrent-Bahnen Leukerbad-Albinen AG.

There is currently a lack of year-round mountain experiences with clear differentiation potential. With the Torrent Master Plan, the Torrent cable cars are presenting the strategic direction for the next generation to further develop the tourist potential on Torrent all year round and in a targeted manner. This includes replacing the two aging cable cars and a planned development of the Torrenthorn. "This development was already planned when the Torrent cable cars were founded 52 years ago. It is a flagship project and impresses with its unique 360° view in the middle of the Valais Alps," emphasises Christian Grichting. The estimated investments as part of the Torrent Master Plan amount to around 110 million francs and are to be made over the next two to three decades.

Leukerbad Therme: progressive investment policy is continued

The Leukerbad community, which owns the thermal baths, was recently able to terminate the renovation contract with the canton of Valais, thereby reducing the annual amortization obligation. Wolfgang Loretan, president of the community, explains: "Over the last 18 years, the community has invested 20 million francs in new products for the thermal baths." Last winter, for example, the new pool bar was opened, which has increased the attractiveness of the thermal baths and has been in great demand among guests. "This targeted investment policy in expanding the range of bathing and wellness options, optimizing the technical infrastructure and continuously modernizing the facilities will be continued and strengthened in the future. Terminating the renovation contract is an important step in ensuring that the Leukerbad thermal baths live up to their claim as one of the leading thermal baths in the Alps," says Wolfgang Loretan.

Destination development: new Leukerbad Marketing AG

So that My Leukerbad AG can concentrate more on the efficient operation and further development of the tourist infrastructure in the future, the Board of Directors has decided to establish Leukerbad Marketing AG. This will separate destination marketing from My Leukerbad AG and anchor it more broadly in the destination strategically. The marketing of the destination in the Swiss market will thus be designed more directly for all service providers and the destination as a whole. The new Leukerbad Marketing AG will begin operations on May 1, 2025.

Roland Zegg explains: "The previous organizational structure of My Leukerbad AG was innovative and necessary in order to achieve the turnaround for the infrastructure companies and the entire destination in a first phase. We have succeeded in doing this and now a new strategic phase is beginning. We want to continue investing in a successful future and make the entire destination even more attractive. To do this, it makes sense to separate the operations of the companies from destination marketing."

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