TMR, a regional leader in the operation of mountain resorts and in the provision of tourism services, today released annual results for the financial year 2015/16 – the period from 1 November 2015 to 31 October 2016. Consolidated revenues of TMR grew 14.5% to EUR 81.2 mil., whereas operating profit EBITDA improved 2.9% to 25.1 mil. EUR.
“The fact is that the winter 2015/16 did not bring needed freezing temperatures that would have enabled snowmaking already at the beginning of the season. Also, one cannot say that there was abundance of snowfall, especially in the first half of the winter season. In spite of that, we were able to offer our clients the most kilometers of ski trails and good conditions for winter sports, that’s how we achieved a rise in the visit rate. Our hotels were yet again fully occupied during the peak periods, such as the New Year’s Eve and the “Golden Week”, as well as during spring break. The season was relatively long with strong Easter break and lasted till the end of April. Last season we launched the Gopass mobile app that helped to boost our online ski pass sales by 20%. The summer in the Tatras was record-breaking in terms of the visit rate also thanks to an unfavorable security situation in foreign vacation destinations and thanks to the fact that bookings of summer stays started sooner than prior year. The positive results were achieved also by our ancillary services in the stores, rentals, dining facilities focused on quality, increased sale of season passes thanks to the presale at special rates called Smart Season Pass, as well as by effective marketing via the Gopass program. Besides these, the increases were triggered also by attractions and events organized in our resorts, such as the Ice Dome and the Bear Days at Hrebienok, or the widely successful World Cup Ladies, which got organized in Jasná again after 32 years”, Bohuš Hlavatý, TMR’s CEO and Chairman of the Board of Directors, commented on the results.
We recorded growth in the number of skier days in Mountain Resorts (+9.9%) in the winter and summer season. The higher visit rate in Mountain Resorts and visitor spending, especially in Leisure Parks (+6.2%), were the key drivers of the double digit percentage revenue increase. The total number of visitors in Mountain Resorts was 2.1 mil. and Leisure Parks were visited by 784 ths. visitors. Moreover, the long-lasting impact of the massive investment projects of development of the Tatra resorts and hotels from prior periods totaling EUR 206 mil. at the end of 2015 was reflected in the Group’s results also in the last year and justified an increase of ticket prices, although the average revenue decreased year-over-year (-4.3%) due to increased discounted online ski pass sales. Besides higher average revenue per visitor in Leisure Parks (+6.2%), TMR managed to increase visitor spending also on ancillary services, especially Sports Services & Stores (+17.7%).
During the year we invested 24 mil. EUR, most of which flowed into infrastructure, lodging capacities, attractions, and ancillary services in our Slovak resorts. As part of the modernization project of Silesian Amusement Park, we opened first new attractions in the summer.
Detailed results by segments:
Mountain and Leisure
Thanks to the high level of the services offered that attracted yet again a higher number of visitors, especially in Mountain Resorts, despite the milder and drier winter season, the main segment of Mountains and Leisure, which includes subsegments of Mountain Resorts, Leisure Parks, Dining, and Sports Services & Stores, recorded a 14.2% growth in revenues year-over-year to reach EUR 60.449 mil. (52.951). Mountain Resorts were up 13.3%. Leisure Parks improved revenues by 14.3%; Dining reported an 11.1% growth; whilst Sports Services & Stores were up 29.4%. Operating profit before interest, tax and depreciation (EBITDA) maintained the level of previous year at EUR 19.593 mil. (19.669), which means that operating profitability measured by EBITDA margin reached 32.4% (37.2).
Thanks to the successful winter and summer season 2015/16, especially in the Tatras, the Group achieved a 13.3% revenue growth in Mountain Resorts in total of EUR 34.120 mil. (30.118). The successful winter and summer season 2015/16 in the Tatras attracted more visitors to the resorts, which boosted revenues. The average revenue per visitor fell this time despite higher prices at the cash registers. Online ski pass sales through the GOPASS program, available in resorts Jasná and Vysoké Tatry, increased year-over-year by 56% in the number of skier days sold, and made up 22% of total ski pass sales in the Tatra resorts. The sale of season passes surged the most – by 47% in the number of skier days sold, most of which the clients purchased in advance as the Smart Season Pass. The SON resort was closed during the summer. Mountain Resorts’ EBITDA reached almost the same level as in the prior year with EUR 12.510 mil. (12.556), and consequently Mountain Resorts reached operating profitability of 36.7% (41.7).
The revenues for last year grew by 14.3% to EUR 10.527 mil. (9.207). The revenue growth was achieved by a higher average revenue per visitor whilst the total number of visitors almost did not change year-over-year. New attractions in both parks also boosted the revenues. EBITDA fell by 6.3% to EUR 3.735 mil. (3.988) mainly due to increased operating expenses related to the new attractions in SAP. Leisure Parks’ operating profitability fell to 35.5% (43.3).
Total revenues of this subsegment reached EUR 11.132 mil. (10.018), which means an increase of 11.1%. Operating profitability of this subsegment reached 21.6% (23.7), with EBITDA growing to EUR 2.402 mil. (2.379). This subsegment’s success is partly dependent on success of the resorts, as Dining provides supplementary services in Mountain Resorts and Leisure Parks. The increased visit rate in the resorts, higher visitor spending, as well as numerous marketing events during the year contributed to the subsegment’s positive results.
Sports Services and Stores
Revenues also increased 29.4% to EUR 4.670 mil. (3.608). EBITDA improved by 28.4% to EUR 946 ths. (737). Operating profitability reached 20.3% (20.4).
Hotels ended the financial year with revenues amounting to EUR 19.910 mil. (16.751) – an 18.9% growth. Besides the higher average occupancy (+1.7 pp) and higher ADR of the hotel portfolio (+4.9%), the increased Hotels revenues are also attributable to synergic effects with Mountain Resorts and Tatralandia, supported by the client relationship management via the Gopass program and effective marketing. The results were also impacted by full occupancy especially during peak periods, such as New Year and the ‘Golden week’ (24/12-6/1), the record-breaking summer in the Tatras mainly thanks to the unfavorable security situation in foreign vacation destinations, and by the fact that bookings of summer stays started sooner than in the prior year. Occupancy during some days in July and August was close to the limit. EBITDA fell slightly by 1.8% to EUR 4.402 mil. (4.482), corresponding with EBITDA margin of 22.1% (26.8).
Revenues reached the level of EUR 0.843 mil. (1.213). On the like-for-like basis revenues rose by EUR 665 ths. Gain on sale of recreational real estate – in the past year on the sale of 29 bungalows of Holiday Village Tatralandia and nine apartments of Chalets Jasná de Luxe Center – reached EUR 770 ths. Thus, EBITDA rose to EUR 1.116 mil. (0.259) with EBITDA margin of 132.5% (21.4).
The book value of total assets as of the end of the period totaled EUR 375.701 mil. (360.921). Non-current assets lowered to EUR 308.365 mil. (313.766) mainly due to some loans granted that are maturing in less than one year. The book value of equity amounted to 106.003 mil. (103.331). The Group’s total level of debt reached EUR 229.805 mil. (222.421). Out of that issued bonds totaled EUR 184.702 mil. Bank loans of the Group as of the end of the period were valued at EUR 45.103 mil.
Management expects continuing positive effects stemming from capital investments of prior periods totaling EUR 230 mil. with impact on the next financial year and following periods, in terms of increasing the visit rate, client spending in the resorts, and growing occupancy in the hotels, especially in the off-season. The higher activity in the Real Estate segment is expected to continue also in the following periods, which should generate additional revenues and income not only in this segment but also in Hotels and ancillary services through shops and dining facilities. The gradual progress in the projects of modernization of Silesian Amusement Park (SAP) and the SON resort should bring results in terms of increased visit rate and average spending per visitor already in the next period in the case of SAP and in the following periods in SON, as well. In the short term Management will be focusing on inter-segment synergies, quality management, utilization of innovative information technologies, on increasing the quality of services provided and quality of human capital, and on active sales strategy also through the GOPASS program.
Since 28 February 2017 TMR’s Annual Report 2015/16 is available at www.tmr.sk.
Tatry mountain resorts, a.s. (TMR) is the leader in tourism in Central and Eastern Europe; it owns and operates attractive mountain resorts, amusement parks, restaurant facilities, sports services, shops and hotels. In the Low Tatras TMR owns and operates the resort Jasná Nízke Tatry and hotels Wellness hotel Grand Jasná, Boutique Hotel Tri Studničky, Chalets Jasná De Luxe, Hotel Srdiečko, and Hotel Rotunda. TMR is also the owner of Aquapark Tatralandia, the largest Slovak aquapark with year-round operation, which besides water entertainment includes Tropical Paradise, a special tropical indoor hall with sea water, as well as Fun Park, and accommodation in bungalows and apartments of Holiday Village Tatralandia. In the High Tatras TMR owns and operates the resort Vysoké Tatry with mountain areas of Tatranská Lomnica, Starý Smokovec, and Štrbské Pleso, which TMR co-manages. In the High Tatras TMR also owns hotels Grandhotel Praha Tatranská Lomnica, Grandhotel Starý Smokovec, Hotel FIS Štrbské Pleso and Mountain hotel Hrebienok. TMR also owns a 9.5 % share in Melida, a.s., which leases and operates the resort Špindlerův Mlýn in the Czech Republic. In Poland TMR owns a 97% share in the mountain resort Szczyrkowski Ośrodek Narciarski S.A. (SON), a 75% share in a company that owns and operates Silesian Amusement Park (Śląskie Wesołe Miasteczko) and a 7.3% share in an amusement-educational project via the Polish company Korona Ziemi Sp. z.o.o. TMR also owns and leases hotels Slovakia, Kosodrevina, Liptov and Ski&Fun Záhradky a Bungalovy to third parties. By the end of 2016 EUR 230 mil. had been invested into development and modernisation of TMR’s resorts. TMR shares are traded on three European stock exchanges – in Bratislava, Prague, and Warsaw.