“Thanks to the ideal snow conditions, the winter 2017/18 was again very strong, reflecting the higher visitor numbers of the mountain resorts and the overall growth of consolidated revenues for the financial year. Organic sales growth in individual resorts is complemented by revenues of the Czech Skiareal Ješted, which we have been renting and operating since December 2017. Investments in Szczyrk, Poland have also had a significant impact on the increase in sales, thanks to which we have attracted a record number of guests on the slopes of this resort. TMR hotels have been traditionally fully occupied during peak periods. The visit rate during the summer season was somewhat negatively affected by weather. Growth was recorded especially in Legendia, which attracted visitors thanks to a number of new unique attractions,” said Chairman of the Board of Directors and CEO of TMR, Bohuš Hlavatý. He also added that the good results reflect the intensive CAPEX policy of the Company. “Over the past twelve years, we have invested EUR 350 million in the development and modernization of our resorts. In the financial year 2017/18 we invested approximately EUR 54 million, out of which about 17 million had been spent in the Slovak resorts. Except for the extensive investments and newly modernized resorts, we also managed to provide a varied offer of fun events and services that were popular among all age groups, from skiing enthusiasts to families with children. The season was a breakthrough thanks to the implementation of the new self-service ticket machines – GOPASS Points, which extended options to purchase a discounted ski passes directly in the resort. Thanks to the growing number of attractions and the exciting program we prepared for our guests, our loyalty client program GOPASS has grown to nearly 1.18 million members and we believe that we will continue in positive growth trends also in the next financial year,” concluded B. Hlavatý.
Financial Performance
In the prior year, the Group’s total consolidated revenues reached EUR 108.249 mil., an increase of 12.9%. Revenues were positively impacted by a higher visit rate in the resorts, higher average revenue per visitor in the mountain resorts, as well as a greater average daily room rate (ADR) in the hotels. The Group consolidated results include the impact of the Czech Skiareal Ješted for the first time. The like-for-like revenue growth (without the impact of the newly consolidated resort) would have reached 12%.
Regarding the costs, cost of materials and goods sold grew by 17.8%, mainly as a result of a higher number of customers and guests served. Personnel and operating costs were up 16.2%. The rise in personnel and operating costs was caused mainly by the pressure of the labor market to raise wages, new operations (Ješted), but also higher service costs in relation to planned acquisitions and expanding the Group’s operations. The Group’s earnings before interest, taxes and depreciation and amortization (EBITDA) reached EUR 34.166 mil. Operating profitability ratio (EBITDA margin) decreased slightly year-over-year to 31.6% as a result of the higher personnel and operating costs.
The Group recognized a net consolidated profit in the amount of EUR 3.095 mil., a decrease of 55.7%. The parent company reported a net profit of EUR 7.573 mil. (9.223).
Outlook
Management expects continuing positive effects stemming from capital investments of prior periods 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. In terms of expanding the operations, TMR wants to further develop its business in the golf segment, as well. Since November 2018 TMR has been renting the Golf & Ski Resort Ostravice, with a contract for 20 years, and in January 2019 TMR made an agreement to rent Kaskáda Golf Resort Brno where it will oversee the operations of the hotel, restaurant and congress center. In the midterm, TMR plans to add a large Alpine resort into its portfolio, which the clients could use within the GOPASS program. The first step towards this goal is a marketing cooperation with the Austrian Mölltaler Gletcherbahnen Gesellschaft.
For more detailed results visit http://tmr.sk/investor-relations/financial-information/.
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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. TMR also leases and operates the Czech ski resort Ještěd, Golf & Ski Resort Ostravice, and leases Kaskáda Golf Resort Brno, where it operates the hotel, restaurant and the congress center. 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 amusementeducational 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 2018, cca. EUR 350 mil. had been invested into development and modernization of TMR’s resorts. TMR shares are traded on three European stock exchanges – in Bratislava, Prague, and Warsaw.