Compagnie des Alpes, a ski resort and leisure park operator in France, has issued a report on the impact of COVID-19 on its Group business.
Like all French ski operators, Compagnie des Alpes closed all its ski resorts on March 14, 2020, well ahead of the expected closure date of May 8. The early closure means the Compagnie des Alpes Group estimates its sales for the ski season to be approximately 20% lower than the 2019 season.
Unlike ski resorts, the season for leisure parks only starts to get going at the beginning of April. Compagnie des Alpes closed all the venues that were already open and halted the opening of its other parks.
The decision to open resorts will be made on a case-by-case basis and will depend on advice and orders by health officials and the government. The Group notes how sales for its leisure parks from mid-March to the end of June in 2018 – 19 was approximately 120m euros.
In the wake of the COVID-19 crisis, the Group is suspending the 2019-2020 EBITDA guidance for both its core business lines, which the company had distributed to the markets when its annual results had been released in December 2019.
Due to a lack of visibility of when the leisure parks will reopen, Compagnie des Alpes says it is too early to provide an accurate assessment on the financial impact of the COVID-19 outbreak on its 2019-2020 results.
The company will release its sales for the first half of 2019 – 2020 on April 23, 2020 and an update on the situation.
To help offset the drop in turnover, the Group has launched a major cost-cutting plan, centred primarily on lowering payroll expenses and, to a lesser extent, on energy saving measures, both at its ski resorts and leisure parks.