TMR posts a 26% revenue growth for 2014/15

TMR posts a 26% revenue growth for 2014/15
TMR posts a 26% revenue growth for 2014/15
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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 2014/15 – the period from 1
November 2014 to 31 October 2015. Consolidated revenues of TMR grew 25.9% to EUR
70.9 mil., whereas operating profit EBITDA improved 32.6% to 24.4 mil. EUR.

“TMR had a great year. The winter season 2014/15 was a success; thanks to abundance of
snowfall, the season prolonged till May, and weather favorable for snowmaking especially at
the beginning of the winter, we managed to grow in the number of our visitors to our
mountain resorts. All our segments benefited from the surge of guests. During peak periods of
New Year’s and the Golden week we managed to fill our hotels to the limit despite a decline
in Russian-speaking clients. The summer season continued the positive trend of the winter
with plentiful marketing events and relatively warm weather, favorable for outdoor
, 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 the Tatra resorts (+17.7%) and Tatralandia
(+9.4%) in the winter and summer season. The growing visit rate and higher visitor spending
were the key indicators of the double digit percentage revenue growth. For the first time the
results included the results of the Polish resort Szczyrkowski Ośrodek Narciarski S.A. (SON)
and Silesian Amusement Park, since its take-over of operations in May 2015. The total
number of visitors to Mountain Resorts was 1.9 mil. and 777 thous. came to Leisure Parks.
Moreover, the long-lasting impact of the massive investment projects into development of the
Tatra resorts and hotels in prior periods with the total expenditure of EUR 200 mil. till 2014
was reflected in the Group’s results also in the last year and justified an increase of ski pass
prices. Besides an increase in the average revenue per visitor in the resorts (+12.9%), visitors
on average were spending more also on ancillary services such as Dining (+16.7%) and
Sports Services and Stores (+27.5%), so these segments’ share in total revenues grew again.

The decrease of net profit to a loss of EUR -751 thous. was caused mainly by interest
expense, incurred for loans and bonds issued.

Detailed results by segments:

Mountain and Leisure
Thanks to a favorable summer weather and a long winter, rich on snowfall and freezing
temperatures, the main segment of Mountains and Leisure that includes subsegments
Mountain Resorts (Jasná Nízke Tatry, Vysoké Tatry, SON), Leisure Parks (Tatralandia,
Silesian Amusement Park), Dining, and Sports Services and Stores, recorded a year-over-year
28.8% revenue growth to the total of EUR 53.0 mil. and a 22.2% growth like-for-like.
EBITDA increased year-over-year 41.9% to EUR 19.7 mil. and 41.6% like-for-like, which
resulted in operating profitability measured by EBITDA margin of 37.2%.

Mountain Resorts
In the subsegment of Mountain Resorts revenues increased 27.9% to EUR 30.1 mil. and
21.3% without the impact of SON. Mountain Resorts’ EBITDA improved by 58.2% to EUR
12.6 mil. and by 55.1% excluding SON. The successful winter and summer season 2014/15
pulled in a higher number of resort visitors, whose spending were higher on average also due
to a ski pass prices increase on average by 2 euros (1-day tickets). The higher ski pass prices
were justified by the massive capital investments from prior periods. Online ski pass sales via
the GOPASS program increased year-over-year by 194% in the number of sold skier days.

Leisure Parks
The Leisure Parks subsegment achieved a revenue growth of 20.0% to EUR 9.2 mil. on the
like-for-like basis, excluding the impact of Silesian Amusement Park, revenues jumped 4.9%.
Besides the positive impact of Silesian Amusement Park (75% share) on revenues, the
revenue growth was achieved by an increase of the visit rate in Tatralandia, whereas the
average revenue per visitor remained unchanged year-over-year. EBITDA improved by 3.2%
to EUR 4.0 mil. and by 8.3% excluding Silesian Amusement Park.

The subsegment’s revenues reached EUR 10.8 mil., a 34.6% increase. EBITDA improved
43.1% to EUR 2.4 mil. Success of this subsegment partly depends on the success of the
resorts, since it relates to ancillary services in the mountain resorts. Higher visit rate in the
resorts, higher average spending per visitor (+16.7%), as well as numerous marketing events
during the year contributed to the positive subsegment’s results.

Sports Services and Stores
Revenues of sports stores, ski schools, rentals, and equipment service in Mountain Resorts
under the Tatry Motion brand and revenues of stores in Aquapark Tatralandia are linked to the
visit rate of Mountain Resorts, and thus, they increased as well, to EUR 3.6 mil. (+47.0%).
The performance indicator, EBITDA, improved 90.1% to EUR 737 thous.

The second core segment of the Group is the hotel segment, revenues of which reached EUR
16.8 mil. (+15.3%). Besides the growth in average occupancy by 3.6 percentage points and
the average daily rate per room of the hotel portfolio higher by 2.1%, the increased Hotels’
revenues were achieved also by synergies with Mountain Resorts and Tatralandia, effective
marketing, sales, and focus on loyal clients. Maximum occupancy especially during peak
periods, such as around New Year’s and Golden week, and an overall longer winter season
than the year before, also contributed to the results. EBITDA increased 35.6% to EUR 4.5
mil., resulting in EBITDA margin of 26.8%.

Real Estate
The revenues of the Real Estate projects for the past year come from lease of hotel facilities
Hotel Ski & Fun, Hotel Liptov, Kosodrevina Lodge and Hotel Slovakia to third parties and
from sale of recreational real estate, last year from sale of Holiday Village Tatralandia
bungalows. This segment’s revenues reached EUR 1.2 mil. (+85.7%) and EBITDA of EUR
259 thous. (+120.0%).

Financial position
The book value of total assets as of the end of the period totaled to EUR 360.9 mil. (359.6).
Non-current assets lowered to EUR 313.8 mil. (318.9) especially due to depreciation of fixed
assets. The book value of equity amounted to EUR 103.3 mil. (102.3). The Group’s total level
of debt reached EUR 222.4 mil. (228.1). Out of that issued bonds totaled EUR 184.5 mil.
Bank loans of the Group as of the end of the period were valued at EUR 37.9 mil.

Management expects continuing positive effects stemming from capital investments of prior
periods totaling EUR 206 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. Following the lasting trend of demand for complementary
services (described in Market Analysis and Trends), Management expects further growth in
the subsegments of Dining and Sports Services & Stores similar to the previous year. All
these factors should generate organic growth in the Group revenues and operating
profitability. In the short term Management will be focusing on inter-segment synergies,
quality management, on increasing the quality of services provided and quality of Human
Resources, and on active sales strategy also through the GOPASS program. In the 2015/16
winter season TMR will introduce a new mobile app GOPASS, which will enable easier
online shopping for ski passes, even right at cableway entry gates. Through this additional
sales channel management expects to grow in e-shop sales. As for significant events, after 32
years the Jasná resort will again host the World Cup in Alpine Skiing, which should boost the
popularity of the resort and attract new clients. In the following periods management plans to
continue in the projects of modernization of the Polish SON resort and Silesian Amusement
Park, which are expected to contribute to sales growth by increasing the visit rate and client

TMR’s Annual Report 2014/15 is available since 29 February 2016 on
Tatry mountain resorts, a.s. (TMR) is the leader in tourism in Central and Eastern Europe; it owns and operates attractive mountain resorts
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 Tat ras TMR
owns and operates the resort Vysoké Tatry with mountain areas of Tatranská Lomnica, Starý Smokovec, and Štrbské Pleso, which TMR comanages.
In the High Tatras TMR also owns hotels Grandhotel Praha Tatranská Lomnica, Grandhotel Starý Smokovec, and Hotel FIS
Štrbské Pleso. TMR also owns a 19% 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) and a 75% share in a company that
owns and operates Silesian Amusement Park (Śląskie Wesołe Miasteczko). TMR also owns and leases hotels Slovakia, Kosodrevina, Liptov
and Ski&Fun Záhradky a Bungalovy to third parties. By the end of 2015 EUR 206 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.