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Compagnie des Alpes: Sales for financial year 2016/2017
Annual sales rise 6.6% on a comparable basis* thanks to a sustained dynamic across business lines
Paris,– Compagnie des Alpes reports consolidated sales for financial year 2016/2017 of €762.2 million. On a comparable basis,* sales were up by 6.6% to €761.5 million. All of the Group’s business divisions contributed to this good performance.
In the 4th quarter of 2016/2017, consolidated sales reached €148.8 million on a comparable basis,* an increase of 3.0%.
Ski Areas: For the 3rd year in a row, a strong rise in sales
In a winter that saw less snowfall than usual, Ski Area divisional sales in 2016/2017 amounted to €426.9 million, an increase of 4.2% compared with the previous financial year. Ski lift sales, which account for almost 95% of total sales for the Ski Areas division, rose by 4.4%.
This growth was driven by a 0.5% increase in the number of skier days for the Group's ski resorts. By comparison, the number of skier days for the French market as a whole fell by 1.5%1. This resilience shown by Compagnie des Alpes ski areas demonstrates the appeal and quality of its sites and attests not only to ongoing efforts made to constantly improve the ski offering but also initiatives aimed at enhancing the customer experience by focusing on the appeal, the accommodations, and the marketing of the Group's ski areas. At the same time, the average expenditure per skier day rose by 3.9%, including a price effect of 2.5% and a mix product effect of 1.4%.
Sales for the 4th quarter of financial year 2016/2017 (€6.8 million), which accounts for less than 2% of the annual total, was down by 7.9% compared with the 4th quarter of 2015/2016. This is primarily because the Group’s facilities were open fewer business days during the summer season than last year.
Leisure Destinations: sales growth tops 30% on a comparable basis for the last four years
On a comparable basis,* annual Leisure Destination sales for the 2016/2017 financial year increased by 8.4% compared with the previous year, reaching €320.2 million and bringing aggregate growth for the last four financial years to 31.2% on a comparable basis.
For the year as a whole, the increase in sales was driven primarily by growth in attendance (+6.4 %). Contributing to this dynamic, six of the Group’s leisure destinations broke attendance records, including Parc Astérix which, for the first time in its history, surpassed the important milestone of 2 million visitors in one year. The extension of the Trois Hiboux hotel, the first in a three-phased plan for increasing the Parc’s capacity to accommodate overnight guests, boosted visitor attendance.
Customer Satisfaction remained high over the entire season despite the increased volume. The new major structural attractions inaugurated this year (Pégase Express at Parc Astérix, L’Extraordinaire Voyage at Futuroscope and The Voice at Grévin), as well as the ongoing implementation of the Very High Customer Satisfaction action plans, have increased both the appeal of the sites.
In-park sales, which account for more than a third of total leisure destination sales, grew by more than 10%, faster than front gate ticket sales, illustrating the success of the Group's strategy of offering a wide range of restaurant and shopping options that meet visitor expectations.
For the fourth quarter, which represents 43% of the annual sales total, sales on a like-for-like basis* came to €137.6 million, an increase of 3.3% that exceeded the Group’s objective of reaching the same level as last year, since the very clement weather conditions during the final quarter of 2015/2016 boosted sales. It should be noted that sales were uneven this year, especially in August.
Group Development: new contracts in China ahead of the 2022 Winter Olympics
Throughout FY 2016/2017, Group Development sales increased by more than 50% to reach €14.3 million.
Grévin International sales reached €10 million for the year, driven largely by the success of Chaplin's World by Grévin in Switzerland. The performances of the other three Grévin venues (Montreal, Praha, and Seoul) remain below expectations, especially Seoul, where attendance was adversely impacted by unfavorable conditions linked to the geopolitical climate that drove Chinese customers away.
The consulting business continued to expand throughout the year, with several new technical assistance contracts signed, particularly in China. These included continuation of the Thaiwoo site assistance and operating contract, design and construction support at the Yanqing resort – selected to host the main events at the 2022 Olympics – and master plan agreements at the Altai resort and in the Ürümqi area. The consulting business also achieved notable successes this year in other regions, including Turkey, Kazakhstan, Georgia, Moscow, and the Jardin d’Acclimatation in Paris.
Sustained sales and cost control efforts should enable the Group to improve its operating performance for financial year 2016/2017.
For the Ski Areas division, the EBITDA margin should be in line that of the previous year, which was 35.8%.
As of this year, the Leisure Destinations division (excluding Futuroscope) will see its EBITDA margin exceed 27%, which is the target the Group had set for FY 2018/2019.
Concerning Grévin's international business and as announced, the specific action plans implemented in Montreal, Praha, and Seoul are currently being assessed. Depending on the options chosen for the future development of each of the sites, the Group will conduct a thorough review of the carrying value of these assets. This situation will be addressed in detail when the annual results are presented on December 12, 2017.
The project aimed at bringing in new shareholders for the purpose of stepping up the Group’s international development remains on the table.