Compagnie des Alpes: Consolidated sales for the 1st half of FY 23/24

Record half-year sales of €761.1 Million ie 12.2%, with strong momentum since the end of the Christmas vacation period

Compagnie des Alpes recorded consolidated sales of €761.1 million for the 1st half of 2023/24, a significant 12.2% increase compared with the same period last year.

This good performance is largely attributable to strong mobilization of our teams, both those involved in designing, preparing, promoting or selling the Group’s various offers, and those working in a customer-facing capacity, whether at mountain resorts or in leisure parks. This commitment to high levels of customer satisfaction, the cornerstone of the Group's strategy, was reflected in an increase in customer satisfaction scores in all three divisions during the first half of the year.

Ski Areas and Outdoor Activities: an excellent first half, driven by a sharp rise in the number of skier-days

Sales for the Ski Areas and Outdoor Activities division reached €496.9 million in the first half of financial year 2023/24, representing a significant increase of +14.3% over the same period last year. The Group points out that, following the satisfactory performance recorded during the 2023-24 Christmas school vacation period, business was estimated to be up by +9%. Compagnie des Alpes has thus recorded even more marked growth since the end of the Christmas vacations, whether before, during or after the February school vacations.

The ski lift business, strictly speaking, grew by 14.3%, driven both by an 8.6% rise in the number of skier-days (in a national market which, as of April 5, was up 2.0%[1]) and by a 5.7% increase in average revenue per skier-day.

 

All the Group’s ski areas reported growth in the number of skier-days, boosted by particularly good snow conditions thanks to their high-altitude location (the Group was thus able to reduce its use of water for snow-making by nearly 20% for the six months ended), ensuring high-quality skiing combined with an optimal school vacation calendar, which allowed for better visitor flows during periods that are traditionally the busiest.

The ski areas also benefited from consistent investment efforts made by the Group to enhance their appeal. This season, these efforts included the new Pontillas gondola lift at Serre Chevalier, designed to revitalize the Villeneuve-La Salle area with the MMV residence Club project, and phase 1 of the redesign of the Chaîne des Glaciers at La Plagne, to facilitate access to the upper part of the area in both winter and summer.

Lastly, the resorts have benefited from the strong mobilization of all local stakeholders, who have contributed to efforts aimed at enhancing their appeal and their promotion.

 

Sales for the Distribution & Hospitality division for the 1st half of financial year 2023/24 year came to €96.5 million, representing an increase of 2.9% over the same period last year. This performance, in line with the Group's expectations, masks contrasting trends.

MMV posted double-digit growth in accommodation sales net of commissions in the first half, boosted in particular by the excellent performance of sites opened or renovated this year, such as the new club residence at Risoul, open since December 2023, and the Village Club at Alpe d'Huez, renovated this winter. MMV recorded particularly good occupancy rates, reaching around 97% during the Christmas vacation period and 95% in February.

Mountain Collection Immobilier, the leading network of mountain real estate agencies, enjoyed particularly buoyant business, also recording double-digit growth over the half-year. The network benefited this season from an overhaul of its pricing structure, and further strengthened its position with the opening in February of a new agency, its 30th, in Val Thorens.

The Travelfactory business performed as expected, with moderate growth due to the refocusing on a policy based on contribution margins (rather than volume) and the discontinuation of the rail service decided by the carrier. Discussions are underway for next season with a view to its reinstatement.

Leisure Parks sales for the 1st half of 2023/24 stood at €167.7 million, representing a particularly dynamic 11.9% increase compared with the same period last year. At the end of the 2023-24 Christmas school vacation period, business was estimated to be up +8%. The improvement in performance since the Christmas vacation period includes a slight calendar effect: the Easter weekend, which traditionally marks the reopening of all sites closed during the winter, was this year partially positioned in the 2nd quarter (Easter Saturday and Sunday on March 30 and 31, 2024), whereas in financial year 2022/23, sites reopened only at the beginning of the 3rd quarter.

Over the 1st half of the year as a whole, performance was driven by a significant increase in visitor numbers (+5.1%) and by a further rise in spending per visitor, which grew by +6.1% (admissions + in-park spending), particularly for catering. The hotel business, with an increase of over 30%, also contributed to this positive trend.

The Leisure Park performance during the 1st half of financial year 2023/24 can be broken down as follows:

Compagnie des Alpes has signed an agreement to acquire 86.5% of the capital of the Urban group (UrbanSoccer / UrbanPadel), leader in 5-a-side soccer and co-leader in padel in France.

The agreement is materialized by a binding offer to the shareholders of Soccer 5 France SAS, countersigned by them. Since the announcement made on March 13, discussions have continued.

The Urban group is the number one in 5-a-side soccer and a co-leader in padel in France, with 3.75 million players per year. It operates thirty-three centers in France (and one in Portugal) for 5-a-side soccer and/or padel, a sport that is experiencing rapid growth. The Urban group is expected to achieve sales of approximately €48 million and an EBITDA (post IFRS 16 / unaudited) of around €21.5 million for the financial year ending in June 2024. Compagnie des Alpes would acquire 86.5% of the capital of Soccer France SAS, the parent company of the group, which would be integrated into the Leisure Parks division for €129.7 million.

The deal would enable Compagnie des Alpes to round out its leisure offering with sports and urban activities accessible year-round, and perfectly in line with its raison d'être and strategy.

 

Compagnie des Alpes acquires the remaining 15% stake in MMV and, as of March 27, 2024, now owns 100% of its capital.

In accordance with the agreements reached between Compagnie des Alpes and the President co-founder of MMV, as well as its General Manager, at the time of the acquisition of 85% of the capital by Compagnie des Alpes, both the President co-founder and the General Manager offered to sell the remaining stake (15%) they still held to CDA, which was accepted.

This transaction was conducted based on a valuation of MMV and a price per share identical to that of the acquisition of the 85% stake in October 2022.

This outlook is provided subject to major economic contingencies.

 

After the excellent performance recorded in the 1st half, the Group is confident for the remainder of the season. As a reminder, the 2nd half traditionally represents a little over 10% of the annual sales of the division.

An initial internal survey of 10,000 new customers ("first timers", customers who have not been skiing in our ski areas for more than 5 years) shows that almost 93% are transfers from other high mountain resorts not managed by the CDA and/or new mountain enthusiasts and that only 7% are transfers to the high altitude resorts from customers who are regulars at low and medium mountain resorts in France or abroad.

 

The Group is also confident in the outlook for MMV's business, with booking levels to date for both spring and summer vacations higher than the same period last year.

Given the positive business momentum observed in the 1st half, the Group is confident about the spring-summer season (subject to any potential impacts linked to the 2024 Olympic Games, notably on business in the Ile de France region.

Indeed, to date, booking and pre-sales levels are higher than those recorded last year, while the attractiveness of our sites will be significantly enhanced thanks to the investments we have made. In particular,

In June 2023, the Group announced the implementation and monitoring of 10 commitments and 5 renunciations, (https://engagements.compagniedesalpes.com), the rollout of which will be monitored and communicated in the same way as its financial results.

In this respect:

The Group has implemented a plan to allocate 30 free shares to all its employees, both permanent and seasonal, French, and international.

In accordance with Commitment number 10, Compagnie des Alpes announced in July 2023 the implementation of an Employee Share Ownership Plan to foster the long-term loyalty and engagement of all Group employees (employees already benefiting from the Performance Action Plan as well as corporate officers are not eligible) in the growth they help generate, subject to seniority and their presence in the coming years.

To ensure that as many employees as possible, especially seasonal ones, benefited from this plan, the allocation was made, for the Leisure Park division and head offices, on the basis of the list of eligibles present at the end of August, and for the Ski Areas & Outdoor Activities and Distribution & Hospitality divisions, at mid-March. Over the past 12 months, 4,074 employees have each been allocated 30 bonus share rights. This plan is expected to be renewed every year, subject to approval by the Annual Shareholders’ Meeting and the Board of Directors.

 

In keeping with commitment number 5, Compagnie des Alpes has announced the launch of its Changeons d'Ere by CDA Lab. This multi-disciplinary think-tank, which brings together independent personalities from a variety of backgrounds, will initially reflect on the evolution of every aspect of the French mountains (social, economic, sociological, demographic, etc.). The Lab will report regularly on its work.