Business Up For World’s Biggest Ski Resort Operator (15-May-11)

The French-based Compagnie des Alpes groups....

The French-based Compagnie des Alpes groups which owns the majority of major French ski areas as well as some other leading Alpine resorts and a lot of the continent’s theme parks has reported increased sales for the 2010-11 ski season.

“(For) Ski areas (it was) a satisfactory winter season, despite light snowfall and poor skiing
conditions at the end of the season. After three years notable for their exceptional levels of activity, sales at ski areas for the first half of 2010-2011 were satisfactory, amounting to €316.0 million, an increase of 3.43% (3.24% on a comparable basis).” Said a company statement, which continued,

“The Christmas holidays, which account for around 15% of the season, enjoyed early and abundant snowfall and good weather conditions, which mitigated the unfavourable impact of the Christmas- holiday schedule (Christmas and New Year's Day both fell on a Saturday). The four weeks of French school holidays in February and March enjoyed good results, compared with the same period a year earlier. The number of skier-days rose by just under 5% over the period, which highlights the appeal of ski products and ski areas managed by the Group.”

The company has not said if skier numbers were up overall or just in February, however it says the average revenue per skier-day rose 2.7% for the half-year.

“After the close of the financial year, ski areas were affected by the late positioning of this year’s school holidays and Easter weekend. The weather conditions, with abnormally high temperatures, resulted in less abundant snowfall and a partial loss of interest by customers at the end of the season even though expenditures for artificial snow and ski trails and outstanding teamwork in ski- area maintenance provided quality late-season skiing conditions for most ski areas.” Continued the statement.

“Overall, and given the expected increase in average revenue per skier-day, revenues from ski lifts should decrease only slightly (between -1% and -2%) for the full season. The Group is taking measures to limit the impact on margins of ski-area activity, which in any event should be affected positively by compensation from a law suit relating to the Vanoise Express cable car (approximately €6.5 million in operating income).” The statement concluded.