LIPTOVSKÝ MIKULÁŠ (30 July 2021) –Tatry mountain resorts, a.s. (“TMR”, the “Company”) published its financial results for the first six months of the financial year 2020/2021, as of April 30, 2021. The Group’s consolidated revenues, including government subsidies related to the pandemic, were almost € 53 million lower during the reporting period. than during the same time last year. They reached almost 16 million euros, which represents a 76% decrease.
Due to measures to prevent the spread of coronavirus and restrictions of movement, all resorts in the TMR portfolio were closed or had severely restricted operations during most of the winter 2020/21 season. Thus, key performance indicators in individual segments recorded significant declines, which was reflected in lower sales.
The management responded to the decline in sales by significantly reducing operating costs. “As part of the collective redundancies, we have canceled 100 permanent positions. Overall, we managed to reduce our personnel and operating costs by more than 41% in the first half of the year. However, due to significantly lower sales, despite the savings, the Group’s operating profit before depreciation (EBITDA) fell by 130% to -8.3 million euros. During the first half of the year, we reported a loss of -35.9 million euros as a Group at the level of total comprehensive income, “commented Igor Rattaj, Chairman of the Board of Directors of TMR.
During the period of limited operating activities and a radical shortfall in revenues, the management’s priorities included, in particular, maintaining financial stability and the safe continuation of the Group’s operations. “So far, we have been able to provide sufficient liquidity to meet our operational needs and meet our obligations. We are all the more pleased that, in addition to stabilizing our operations, we are also succeeding in developing the holding’s activities. In the past six months, the Štrbské Pleso resort has become a full-fledged part of the Group’s portfolio. Since May 2021, the mountain resort Muttereralm near Innsbruck also belongs to the TMR, “said I. Rattaj.
Regarding further developments, the Group has gradually started to resume operations since the end of April, thanks to the release of anti-pandemic measures. Cable cars, restaurants and hotels had reopened, subject to strict hygiene orders and recommendations. “From the summer months, we expect a certain revival of visitors to the resorts, especially for domestic tourists. The resumption of major international tourism in the coming period will depend on several factors, including the implementation of vaccination policy. After stabilizing the situation with regard to the spread of coronavirus and its mutations, we assume that the Group will again be able to achieve balanced management at least at the level before the outbreak of COVID-19“, concluded I. Rattaj.