COMPAGNIE DES ALPES (EPA:CDA) - CDA - H1 sales of 2018/2019

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18/04/2019 17:50

Press Release

1st half 2018/2019 sales

    Business is up thanks to a good winter season for Ski Area Division

Paris, April 18, 2019 - Compagnie des Alpes posted consolidated sales of
EUR498.2 M for the 1st half of financial year 2018/2019, an increase of +3.2%
on a restated basis (+2.8% on a comparable scope basis) compared with the 1st
half of the previous financial year.

Consolidated Sales, October 1, 2018 through March 31, 2019

(In thousands of EUR)        1st half      1st half     Change         Change
                            2018/2019     2017/2018      vs.        Comparable
                                         Restated(2) Restatement(2)  scope(3)
Comparable scope(3)
Ski Areas                  384 660         368 852       +4.3%         +4.3%
Leisure Destinations        93 131          93 298       -0.2%         -0.2%
Holdings and Supports       20 401(1)       20 341       +0.3%         -9.5%
                                                                       (3)(4)
Total                      498 192         482 491       +3.2%         +2.8%

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

Ski Areas: another rise in sales

Ski Area sales rose by +4.3% in the course of the first half of the current
financial year compared with the same period last year, reaching EUR384.7 M.

After a particularly dynamic 1st quarter, sales reached EUR330.1 M for the 2nd
quarter, increasing by +2.5%. To date, the ski season has benefited from
relatively favorable conditions in terms of snowfall and sunlight.
The year's snowfall began sufficiently early and fell in good quantities, which
allowed the Group to open its various resorts at the start of the season. The
Christmas school holidays, as well as the winter break period, were positive
and balanced. The decent level of snow nationwide contributed to a greater
distribution of skiers at various resorts, which allowed the resorts at lower
to mid altitudes to attract more skiers and thus see business gains that
surpassed those of the bigger resorts.

For the entire 1st half, lift ticket sales alone rose by 4.1%, boosted by a
+0.9% increase in the number of skier days as well as a +3.2% increase in
revenues per skier day. The first half was also boosted by the positive
calendar impact - featuring an additional Sunday opening - which will be
corrected in the 3rd quarter.

Leisure Destinations: acquisition of the first Austrian leisure park

Sales for the Leisure Destination division totaled EUR93.1 M, a very slight
decline of -0.2% compared with the 1st half of 2017/2018, essentially due to
the Easter holiday falling later this year.

After 1st quarter consolidation of business at a high level, sales for the 2nd
quarter, which accounts for a small proportion of annual business, came to
EUR23.8 M, versus EUR24.0 M for the same period the previous financial year
(-0.7%).

During this period, the closure for renovation related work at the Grévin
Paris site during the month of January was offset by the reopening of Aqualibi
(which had been closed for renovation during the 2nd quarter of 2018). The
level of business was nonetheless affected by the fact that the Easter weekend
was later this year. In 2018, it fell between late March and early April, which
led to the early opening of the majority of sites before the end of the 2nd
quarter. This year, these sites did not open until early April. Adjusted for
this calendar effect, sales growth would have been positive (around 0.5%) for
the first half of this financial year.

For the 1st half of the year, the solid increase in spend per visitor (+2.1%)
offset the slight decline in park attendance rates.

Acquisition of Familypark, the first leisure park in Austria

On March 20, 2019, Compagnie des Alpes announced the acquisition of 100% of the
shares of Familypark, the first leisure park in Austria, consolidated as of
April 1, 2019. The enterprise value of the acquisition was
EUR72.5 M. In financial year 2018, this site generated revenues of EUR19.1 M
and EBITDA of EUR6.8 M, and welcomed 716,000 visitors. It is a quality asset
with high satisfaction ratings, located in a large catchment area without
direct competition. In addition, the park shows genuine potential for
development.

Holdings and Supports: successful integration of TravelFactory

In the course of the 1st half, sales for Holdings and Supports amount to
EUR20.4 M, versus EUR20.31 M for the same period one year earlier.

The volume of business developed by TravelFactory increased over the first half
of the year, and the group has continued to expand its activities
internationally. After the successful launch of its Travelski site in Belgium
in the first quarter, the Group is preparing to enter the UK and Dutch markets.

The consulting and assistance business experienced a slowdown in sales due to
the completion of the project management assistance contract related to the
renovation project at the Jardin d'Acclimatation, which ran until the site
reopened in June 2018. The Compagnie des Alpes nonetheless continues to
collaborate on this site with the LVMH group via a management assistance
contract and a marketing contract. During the 2nd quarter, other revenue from
the consulting and assistance business mainly concerned contracts signed during
the first quarter, particularly in China.

(1) TravelFactory sales figures reported in 2017/2018 have been restated as
indicated in the additional information section at the end of this document.
This restatement has no impact on EBITDA or Group earnings.

Sales 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 third quarter represents, on average, around 12% of annual sales (while the
fourth quarter accounts for 1 to 2%). Given the construction of the spring
school holidays and sales posted since April 1, the Group expects growth for
the full year to reach between 2 and 3% for this division.

The target EBITDA to sales ratio of between 36 and 37% for FY 2018/2019 is
maintained.

* Leisure Destinations

For Leisure Destinations, the bulk of the season lies ahead, as the second half
of the year represents nearly 75% of annual sales. The Group has set an annual
target of an EBITDA to sales margin of 27 to 28% (excluding Futuroscope). An
ambitious investment plan has been approved to support this growth, increase
the capacity of the facilities, and offer visitors an experience that
contributes to improving their satisfaction. The main investments are indicated
below:

- Parc Astérix, which features an expanded hotel capacity that has been
  increased by 50% (300 rooms versus 200 for the 2018 season) with the Cité
  Suspendue, a communications push on the occasion of its 30th anniversary and,
  since April 6, among others, the new attraction Attention menhir!, a 4D film
  that combines dynamic seating and special effects projected in a 300-seat
  movie theater.

- Futuroscope, which on April 13, 2019, inaugurated a new area for kids called
  Futuropolis. With its 21 games and attractions spread over 3 hectares, this
  mini-city caters to the needs of children in a fun and educational way that
  addresses their future career aspirations.

- Walibi Rhône Alpes, which continues its overhaul and this season celebrates
  its 40th anniversary, continues to refine the theme of the Festival City area
  with a new food court and two new attractions, including Mystic, a new roller
  coaster that is 575 meters long and features a vertical drop of 31 meters,
  and Les P'tits Chaudrons , a more family-friendly attraction.

- Walibi Belgium, which this season continues the transformation it began last
  year, is opening two new areas: Karma World, which focuses on Indian culture,
  with a new indoor attraction called Popcorn Revenge, which is interactive,
  and Fun World, with a family-friendly roller coaster.

- Also in Belgium, Bellewaerde plans to inaugurate an indoor aquatic park
  covering 3,000 m² that will have a second gate and operate on a standalone
  basis while also benefiting from strong synergies with the existing park.

- On July 1, 2019, Walibi Holland will inaugurate a new hybrid coaster (wood
  and metal) known as Untamed. It is part of a more global renovation of the
  Sherwood Forest theme area.

Upcoming events:

2018/2019 half-year
results:                Tuesday, May 21, 2019, after stock market closes
3rd quarter
2018/2019 sales:        Thursday, July 18, 2019, after stock market closes
FY 2018/2019 sales:     Thursday, October 17, 2019, after stock market closes

www.compagniedesalpes.com

                          Additional information

Consolidated sales, October 1, 2018 through March 31, 2019

                          Actual scope                Comparable scope
(In thousands of     FY       FY       Change       FY       FY       Change
euros)           2018/2019  2017/2018          2018/2019  2017/2018
                           Restated(2)
First quarter:
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)
Q1 Sales        126 819    118 245      +7.3%   124 827   118 245      +5.6%
Second quarter:
Ski Areas       330 052    322 021      +2.5%    330 052  322 021      +2.5%
Leisure
Destinations     23 821     23 978      -0.7%     23 821   23 978      -0.7%
Holdings &
Supports         17 499     18 246      -4.1%     17 499   18 246      -4.1%
Q2 Sales        371 372    364 246      +2.0%    371 372  364 246      +1.9%
1st half:
Ski Areas       384 660    368 852      +4.3%    384 660  368 852      +4.3%
Leisure
Destinations     93 131     93 298      -0.2%     93 131   93 298      -0.2%
Holdings &
Supports         20 401     20 341      +0.3%    18 409(3) 20 341      -9.5%
                                                                       (3)(4)
H1 Sales        498 192    482 491      +3.2%   496 199   482 491      +2.8%

(1) Including TravelFactory, consolidated as of January 1, 2018
(2) Sales for 1st half 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 2017/2018 restated to reflect the application of
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     Q1       Q2          Q3        Q4          TOTAL
euros)           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 Leisure Destinations 2017/2018, restated to reflect the
change in revenue recognition for Futuroscope that was applied 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. This method of accounting is now applied by
the Group.

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 that took place in 4th quarter 2017/2018
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     Q1       Q2          Q3        Q4          TOTAL
euros)           2017/2018  2017/2018  2017/2018  2017/2018   2017/2018

Destination
Sales             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     23 978      104 329   142 300      339 927
Difference         - 772        250        - 501     1 022            0

Quarterly sales for TravelFactory in the Holdings and Support BU, 2017/2018

The company TravelFactory, which had been a client, was acquired by CDA on
January 1, 2018.
Starting on January 1, 2018, CDA applied an IFRS compliant method of accounting
for the sales of TravelFactory, based on whether it was an agent or a principal
(margin or sales volume accounting). This method was refined and adjusted for
the 2nd quarter of 2018, in particular with respect to sales concluded with
other companies in the CDA group. This will have no impact on sales for the
year.

(In thousands of     Q1       Q2          Q3        Q4          TOTAL
euros)           2017/2018  2017/2018  2017/2018  2017/2018   2017/2018

Holdings and
Support sales,
Reported          2 095     23 229       2 460      4 191       31 975
Holdings and
Support sales,
after adjusting
sales for TO      2 095     18 246       3 512      8 122       31 975
Difference            0     -4 983      +1 052     +3 931            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.) and12 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, Familypark in Autria in
April 2019 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

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23/04/2024 17:50

COMPAGNIE DES ALPES (EPA:CDA) - CDA - H1 sales of 2018/2019

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