Compagnie des Alpes warns on Monday that it will lose nearly a quarter of its 2019/2020 turnover due to the Covid-19 pandemic if its leisure destinations remain closed until the end of June, adding to the shortfall in win ski resorts.
The group, which has eleven ski resorts (Tignes, Val d'Isère, Les Deux Alpes, Les Arcs …) is already anticipating, for this activity, a drop in turnover of around 20% for the financial year – closed at the end of September – compared to the previous financial year, ie a shortfall of “85 to 90 million euros”, specifies a press release.
As for its leisure destinations such as Parc Astérix, Futuroscope, Walibi parks, for which the season was to start at the beginning of April, they had garnered a turnover of 120 million euros last year, between mid-March and end of June.
– Compagnie Des Alpes (@CieDesAlpes) March 30, 2020
Around € 210 million loss
If these activities were not to reopen before the beginning of July, the cumulative loss of turnover of the two business areas – ski areas and leisure destinations – of Compagnie des Alpes would therefore amount to 210 million euros, or nearly of a quarter of the 854 million euros in revenue earned in the 2018/2019 financial year.
The premature end of the season in its ski areas – March 14, as opposed to May 8 usually, for some – added to the impossibility of opening its leisure parks, leads the group to suspend its objectives gross operating surplus (EBO) margin on its two businesses for the 2019-2020 financial year.
Compagnie des Alpes, which also operates the Grevin museum, which is also closed, expected an EBO margin rate “between 36 and 37%” for its ski resorts and “27 to 28% (excluding Futuroscope)” for its leisure destinations.
“Given the lack of visibility linked mainly to the uncertainty of the dates for the reopening of leisure parks, it is premature to estimate the” impact of the situation on 2019/2020 results, “said the group.
Compensate 40% of the drop in turnover
At this stage, he hopes to compensate “a little more than 40%” for the drop in overall turnover caused by the closure of his activities, via the “major cost reduction plan”, mainly in terms of wages ( partial unemployment, postponement of hiring) but also energy in particular, which he hired.
Compagnie des Alpes will make “a progress update” when it publishes its sales for the first half of 2019/2020 on April 23.
In 2018/2019 the group recorded a record net profit of 62.2 million euros, driven by a good season in its resorts and a solid performance in its leisure parks.