COMPAGNIE DES ALPES (EPA:CDA) - CDA - Q1 sales of 2018 2019

Transparency directive : regulatory news

17/01/2019 17:46

Press release

                        1st  quarter of 2018/2019

            A good 1st quarter driven by dynamic Ski Area sales

Paris, January 17, 2019 - Compagnie des Alpes reports consolidated sales for
the first quarter of financial year 2018/2019 totaling EUR126.8 M, an increase
of +7.3% on a restated basis (+5.6% on a comparable basis) compared with the
1st quarter of the previous financial year.

Group consolidated sales, from October 1, 2018 through December 31, 2019

(In EUR thousands)     1st quarter  1st quarter     Change        Change
                        2018/2019    2017/2018  vs. Restated(2) Comparable
                                    Restated(2)                  scope (3)

Ski Areas                 54 608       46 831        +16.6%      +16.6%
Leisure Destinations      69 309       69 319         +0.0%       +0.0%
Holdings & Supports        2 902(1)     2 095        +38.5%      -56.6%(3)(4)
Total                    126 819      118 245         +7.3%       +5.6%

(1), (2), (3) and (4): Sales for the 1st quarter of 2018/2019 factor in
the acquisition of Travelfactory, the application of IFRS 15, and a change in
the revenue recognition method used, all of which are described in detail at
the end of this press release.

Ski Areas: the season is off to a dynamic start

Ski Area sales for the 1st quarter rose significantly, to EUR54.6 M, versus
EUR46.8 M for the same period the previous year, an increase of +16.6%.

First quarter lift sales, strictly speaking, also rose by +16.6% compared with
the 1st quarter of the previous year. This increase is the result of an
increase in revenue per skier-day compared to last year, combined with a +4.2%
increase in the number of skier days. Sales were boosted by the first snowfall
at the beginning of the season and good weather conditions over the Christmas
school holidays. It should also be noted that the Group benefited from an
additional day of operation during the last week of the year, with December
31st falling on a Monday this year as opposed to a Sunday last year, an impact
that will be neutralized in the 2nd quarter.

Indeed, the 2018/2019 ski season got off to a satisfactory start under good
conditions: snow fell early enough in the mountains and cold cycles allowed for
the operation of snow resources at all ski resorts.

Application of IFRS 15 is having an impact on the restatement of season passes.
Compared with the old accounting method, it had a negative impact on revenue
recognition of EUR14.3 million for the first quarter of 2018/2019, compared to
a restatement of EUR14.2 million for the 1st quarter of the previous year. As a
reminder, the application of IFRS 15 has an impact on the quarterly revenue
breakdown only and will have no impact on annual sales (see the table in the
appendix showing the impact of IFRS 15 application on 2017/2018 ski area
revenue, restated).

Leisure Destinations: a quarter of consolidation

After increasing steadily since 2013, Leisure Destination sales for the 1st
quarter just ended are undergoing consolidation at a high level. Sales for the
quarter came to EUR69.3 million, virtually unchanged compared to the same
period last year, despite the negative calendar effect in the first quarter.

The Halloween offering continues to be a great success, with customer
satisfaction growing or remaining stable for nearly all facilities. After 5
consecutive years of strong growth, during which Halloween period sales went
from EUR14 M in 2012/2013 to EUR34 M in 2017/2018, this year sales rose
slightly (+0.1 %), in line with the Group's expectations and due in particular
to an increasingly higher base effect. Halloween period sales were nonetheless
resilient, with weather conditions less supportive this year compared to last
year.

Sales for other offerings, such as the Christmas Trees at Astérix (BtoB) and
Futuroscope (BtoC), performed reasonably well.

Consequently, the decline in attendance for the period was fully offset by
healthy growth in spending per visitor (+3.7%). The best performing sites
continue to be those with the most advanced multi-year investment and
transformation plans.

Holdings and Supports: new contracts in China and in Japan

During the 1st quarter of the 2018/2019 financial year, Holdings & Supports
revenue amounted to EUR2.9 million, versus EUR 2.1 million for the same period
last year.

Travelfactory expanded its international business with the launch of the
Travelski site in Belgium during the quarter, supported by an advertising
campaign targeting the region around Brussels. Travelfactory is also in the
process of completing the integration of Alpes Ski Résa, the Group's existing
online business in mountain vacations. The strategic decision to adopt premium
positioning for this brand is confirmed.

As part of its industrial partnership, Compagnie des Alpes began working with
the Fosun group to design and build a "new generation" snow dome in Taicang,
located in the region near Shanghai. The Group also continued to strengthen
ties to flagship resorts in China: it signed a technical assistance contract
with the Beidahue resort in the Jilin region; an international ski school, in
collaboration with Evo2, has opened at Wanlong, one of China's most iconic
resorts in the Chongli Olympic Zone, another mission was signed with the Jilin
region to identify the most suitable sites for the development of outdoor
activities 4 seasons. Lastly, a consulting contract covering two ski resorts
was also signed last quarter with the Tokyu Group in Japan. These contracts
strengthen the Group's presence in Asia.

Trends for the rest of the year

The outlook for 2018/2019 provided below is given barring the occurrence of any
major adverse events.

* Ski Areas

The Group is confident concerning the season as a whole, even though the
strength of Q1 cannot be extrapolated over the full year. It should be noted,
in particular, that the dates in February and spring school holidays, with the
Paris area holiday period placed at the end of the calendar, are less favorable
than those of the previous year.

* Leisure Destinations

The 2nd quarter generally accounts for only 7% of the annual sales for this BU
and concerns only the sales for Futuroscope (open in February and March),
Grévin Paris, Grévin Montréal, and Chaplin's World by Grévin. This year,
the Grévin Paris facility will be closed throughout the month of January for
construction work (on customer experience and visitor flow).

The main part of the season will get a boost this year from new assets,
including around 100 new rooms at Parc Astérix and the opening (next to the
Bellewaerde site in Belgium) of a new indoor aquatic park covering 3,000 square
meters.

This season will also usher in novelties at all the Group's facilities. For
example, the 30th birthday of Parc Astérix will be celebrated by the creation
of a 4D movie theater featuring a dynamic indoor room that seats
300. For its part, Futuroscope's new attractions will include a large format 3D
movie that allows visitors to take the helm of Solar Impulse, the world's first
solar airplane capable of perpetual flight. Walibi Rhône-Alpes will continue
its redevelopment of the Festival City area with a new Mystic coaster, as well
as a children's attraction and a new lakeside restaurant. In addition, Walibi
Hollande will inaugurate a new structuring attraction, while Walibi Belgium
will continue the renovation it began in 2018 with the redevelopment of two new
areas: Fun World and Karma World.

Upcoming events:

Annual Shareholders' Meeting:    Thursday, March 7, 2019, afternoon
2nd quarter 2018/2019 Sales:     Thursday, April 18, 2019, after stock market
                                                           closes
2018/2019 Half-year Results:     Tuesday, May 21, 2019, in the morning

www.compagniedesalpes.com

                        Additional information

Consolidated sales, 1st quarter 2018/2019

                        Actual scop              Comparable scope

(In thousands      Q1        Q1      Change        Q1        Q1
of euros)       2018/2019* 2017/2018          2018/2019  2017/2018  Change
                          restated(2)          restated

Ski Areas      54 608    46 831    +16.6%    54 608     46 831   +16.6%
Leisure
Destinations   69 309    69 319     +0.0%    69 309     69 319    +0.0%
Holdings &
supports        2 902(1)  2 095    +38.5%       910(3)   2 095   -56.6%(3)(4)
TOTAL         126 819   118 245     +7.3%   124 827    118 245    +5.6%

(1) Including Travelfactory, consolidated as of January 1, 2018
(2) Sales for 1st quarter 2017/2018 were adjusted to take into account the
    application of IFRS 15 and the redistribution over 4 quarters of a
    Futuroscope revenue adjustment that was made last year in the 4th quarter
    retrospectively for the entire financial year.
(3) The change on a comparable scope basis is calculated by comparing sales for
    1st quarter 2018/2019, from which Travelfactory has been removed, with
    restated sales for 1st quarter 2017/2018.
(4) A change in revenue recognition for the Group's existing online sales and
    real estate businesses was made effective as of January 1, 2018. Sales for
    1st quarter 2017/2018 were not restated, however (margin accounting for
    1st quarter 2018/2019 vs. sales volume for 1st quarter 2017/2018).

Quarterly sales for Ski Areas in 2017/2018 restated to reflect the impact of
applying IFRS 15

The application of IFRS 15 changes only Ski Area sales. This standard, applied
effective October 1, 2018, has an impact on the accounting for season package
sales recognition that results in a different allocation of these revenues over
the year. The application of IFRS 15 only applies to quarterly revenue
distribution and therefore has no impact on annual revenue.

To enable a meaningful comparison of quarterly revenues for 2018/2019 year with
quarterly revenues for 2017/2018, the latter have been restated by applying
IFRS 15.

(In thousands
of euros)                Q1        Q2         Q3         Q4        TOTAL
                    2017/2018  2017/2018  2017/2018  2017/2018  2017/2018
Reported Ski Area
sales                60 996     311 095    50 403      6 830     429 324
Ski Area sales
restated to
reflect the impact
of IFRS 15           46 831     322 021    53 642      6 830     429 324
Difference         - 14 165    + 10 926   + 3 239          0           0

Quarterly sales for Ski Areas in 2017/2018 restated to reflect the change in
revenue recognition for Futuroscope that was enacted in the 4th quarter of
2017/2018

At the end of financial year 2017/2018, the Group made reclassification entries
that consisted of neutralizing Futuroscope revenue related to transfer costing
of certain expenses (energy, sales commissions, and back margin) and
neutralizing the corresponding expenses. This reclassification, neutral with
respect to EBITDA, was done in 4th quarter 2017/2018 retrospectively for the
entire 2017/2018 financial year.

Accordingly, to facilitate comparison between quarterly sales for 2018/2019 and
quarterly sales for 2017/2018, the latter have been restated by redistributing
the impact of the reclassification over all 4 quarters of the 2017/2018
financial year. This restatement is neutral with respect to total sales for the
2017/2018 financial year.

(In thousands of euros)     Q1        Q2         Q3         Q4    TOTAL
                        2017/2018  2017/2018 2017/2018 2017/2018 2017/2018
Reported sales,
Leisure
Destinations            70 091     23 728     104 830     141 278  339 927
Leisure Destination
sales Restated to
reflect the change
in accounting method
pertaining to
Futuroscope             69 319     23 979     104 329     142 300  339 927
Difference               - 772        251      -  501       1 022        0

Since it was founded in 1989, Compagnie des Alpes has established itself as an
uncontested leader in the leisure industry. At the helm of 11 of the world's
most prestigious ski resorts (Tignes, Val d'Isère, Les Arcs, La Plagne, Les
Menuires, Les 2Alpes, Méribel, Serre-Chevalier, etc.) and11 renowned leisure
destinations (Parc Astérix, Grévin, Walibi, Futuroscope, etc.), the company
is steadily expanding in Europe (France, the Netherlands, Belgium, etc.) and,
more recently, at the international level (Grévin Montréal in 2013, Chaplin's
World by Grévin Prague in April 2016, and engineering and management
assistance contracts (China, Russia, Georgia, Kazakhstan, Turkey, Morocco,
Japan)). CDA also owns stakes in 4 ski areas, including Chamonix

During the financial year ended September 30, 2018, CDA facilities welcomed
nearly 23 million visitors and generated consolidated sales of 801.2 MEUR.

With nearly 5,000 employees, Compagnie des Alpes works with its partners to
build projects that generate unique experiences, the opposite of a standardized
concept. Exceptional leisure activities for everyone.

CDA is included in the following indices: CAC All-Shares, CAC All-Tradable, CAC
Mid & Small and CAC Small.
ISIN: FR0000053324; Reuters: CDAF.PA; FTSE: 5755 Recreational services

Contacts:

Compagnie des Alpes
Denis HERMESSE      +33 1 46 84 88 97 denis.hermesse@compagniedesalpes.fr
Sandra PICARD       +33.1 46 84 88 53 sandra.picard@compagniedesalpes.fr
Alexis d'ARGENT     +33 1 46 84 88 79 alexis.dargent@compagniedesalpes.fr

Corpus:
Xavier YVON         +33.6 88 29 72 37 xavier.yvon@corp-us.fr

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