The released consolidated results include the period of 12 months of the financial year 2018/19 (the period from November 1, 2018 to October 31, 2019).
CEO and Chairman of the Board of Directors of TMR, Bohuš Hlavatý, commented on the results: “The results were achieved by the organic growth of our resorts, hotels and additional services, as well as new acquisitions in Austria and the new golf segment. The winter season was successful in terms of snow conditions in our mountain resorts and temperatures low enough for snowmaking. The largest increase in the visit rate was recorded in the fully modernized Polish Szczyrk Mountain Resort. The total visit rate of mountain resorts, including the newly acquired Austrian resorts Mölltaler Gletscher and Ankogel, improved by 4.9%. We have seen a drop in attendance in the Vysoké Tatry and Jasná resorts, as we are unable to meet our strategic expansion plan, especially in Vysoké Tatry, and we are faced with the competition of smaller resorts, especially in favorable snow conditions.
This winter we have introduced a revolutionary flexible pricing system for ski passes, “flexi pricing”, to regulate the visit rate, increase average revenue per skier day, and online client share. Thanks to the flexibility of prices we are able to quickly respond to the current demand in the mountain resorts, plan the capacity of the resorts and teach clients to buy ski passes in advance. Thanks to the flexi pricing system and online sales via Gopass Jasná Nízke Tatry grew in revenues the most.
The hotels of TMR’s portfolio, especially the renovated Tatra grand hotels, had a significant impact on the results with a 15.5% increase in revenues. Grandhotel Starý Smokovec has undergone a major change and in the winter season 2018/19 welcomed guests with modernized rooms, conference room and corridors. In November 2018 the Tatra Grandhotel Praha was awarded by the Heritage Hotels of Europe Awards as the best European historical hotel in the Heritage & Wellness category and was awarded the Slovakia´s Best Ski Hotel 2018 by the World Ski Awards 2018.
The summer season in the resorts has brought a visitors growth, although we have seen declines in the leisure parks. The total leisure parks’ visit rate dropped by 10.9%.
With the acquisition of the Alpine glacier resort of Mölltaler Gletscher and its sister Ankogel resort in Austrian Carinthia we have succeeded in fulfilling our medium-term strategic plan to expand our portfolio with a medium-sized Alpine resort. We took over the operation in May 2019 and the whole winter season will be reflected in the results of the following period.
This year we entered the golf segment when we rented two prestigious golf resorts in the Czech Republic – Kaskáda Golf Resort and Golf & Ski Resort Ostravice for at least 20 years. We plan to develop their accommodation capacities in particular, and we want to implement the Gopass program and take advantage of group synergies.
We again organized our favorite events, both in the winter and in the summer, including the most visited Tatra attraction, Ice Dome at Hrebienok, which was built this year in the style of Vatican St Peter’s Basilica. The Women’s World Cup in Alpine Skiing in Špindlerův Mlýn, which we organized, had a positive audience response thanks to the participation and victory of the World Champion, Petra Vlhová.
In terms of investment in development, we invested EUR 45.3 mil. last year. Investments went to the Slovak resorts and hotels, as well as to Szczyrk, Legendia and real estate projects. In Szczyrk the Group’s largest restaurant was built on the slope with a capacity of 430 people. We also bought a hotel that we will expand and reconstruct.”
In the prior year, the Group’s total consolidated revenues reached EUR 127.592 mil., an increase of 17.9%. Revenues were positively impacted mainly by a higher visit rate in the Szczyrk resort, “flexi pricing” especially in Jasná, the acquisition of Austrian resorts of Mölltaler Gletscher and Ankogel, the new golf segment, ancillary services, the operations of the hotel portfolio and real estate projects. Revenues also includes the one-off impact of sales, advertising and accommodation from the World Cup in Alpine Skiing in Špindlerův Mlýn, organized by TMR. Excluding the one-off effects and acquisitions, revenues improved by 11.8% year-over-year.
Another TMR’s key financial performance indicator – EBITDA – reached EUR 35.438 mil.; which means an increase of 3.7%. On the like-for-like basis EBITDA increased year-over-year 15.2%. Cost of materials and goods sold grew by 36.1%, mainly due to the construction of apartments and chalets. Personnel and operating costs were up 18.1%. The rise in personnel and operating costs was caused mainly by the pressure of the labor market to raise wages, an increase in the minimum wage, hiring of new employees for the central department, and acquisitions. The resorts of Mölltaler Gletscher and Ankogel also had a negative impact on EBITDA. Since they were acquired after the winter season, they did not generate revenues high enough to cover their operating costs in the summer season. TMR’s operating profitability ratio (EBITDA margin) reached the level of 27.8%.
The Group recognized a net consolidated profit in the amount of EUR -1.812 mil, a decrease compared to EUR 3.095 mil. in the prior period, due to higher operating costs, interest expense, and depreciation. The parent company reported a net profit of EUR 4.087 mil.
For more detailed results visit http://tmr.sk/investor-relations/financial-information/.
Tatry mountain resorts, a.s. (TMR) is the leader in tourism in Central and Eastern Europe; it owns or leases and operates attractive mountain resorts, amusement parks, golf resorts, restaurant facilities, sports services, stores and hotels. In the Low Tatras, Slovakia TMR owns and operates the resort Jasná Nízke Tatry and hotels Hotel Grand Jasná, Boutique Hotel Tri Studničky, Chalets Jasná De Luxe, Hotel Srdiečko, Hotel Pošta and Hotel Rotunda. TMR is also the owner of Aquapark Tatralandia, the largest Slovak water park 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 suites of Holiday Village Tatralandia. In Slovakia’s 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 A night on Mt Lomnický štít. In Austria the Group owns and operates the alpine glacier resort, Mölltaler Gletscher, and its sister resort, Ankogel Mallnitz. In Czechia TMR also owns a minority share in Melida, a.s., which leases and operates the Špindlerův Mlýn resort. TMR also leases and operates the ski resort Ještěd, Golf & Ski Resort Ostravice and leases Kaskáda Golf Rezort Brno, where it runs a hotel, a restaurant and a conference centre. In Poland TMR owns and operates Szczyrk Mountain Resort and Legendia – Silesian Amusement Park (Śląskie Wesołe Miasteczko). Real estate projects are mostly focused on development, construction, and selling of apartments and non-residential premises and on hotel lease in the TMR resorts. By the end of 2019 around EUR 400 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.