France: Compagnie des Alpes Gives First Financial Results Estimate after Early End of Ski Sports Season

The two main business areas of France’s Compagnie des Alpes (CdA) company are the operation of leisure facilities and ski resorts in France and other European countries. Due to the measures adopted by the respective governments to combat the Corona virus, the group had to close all of its related ski resort on 14 March 2020 – originally, the expected date of closure for the last resort was 8 May. Until the closing date, CdA recorded good performances in this business division, according to its own statement. Now the group expects that its sales for this ski season will be about 20 percent lower than last ski season’s total, which in the 2018/2019 FY was 443.8 million Euro.

The financial impact of the postponed start of the amusement park season cannot yet be estimated. In order to operate as cost-efficiently as possible in the current situation, a cost-cutting plan was launched that is primarily based on lowering payroll expenses (e.g. deferred hiring, etc.) and, to a lesser extend, on energy saving measures and on taking steps to lower variable costs (materials and maintenance). CdA expects that the drop in its turnover could be offset by just under 40 percent during the closed periods by this plan to reduce structural and operating costs, both for the ski areas and for leisure parks. (eap)