Compagnie des Alpes releases its COVID-19 financial plan

Compagnie des Alpes

Compagnie des Alpes has released sales figures for 2019/2020 and its cost adjustment plan in response to the coronavirus pandemic.

Sales for Compagnie des Alpes leisure parks rose by 7.2% for the first six months of the financial year 2019/2020 compared to the same period in 2018/2019.

This is partly because the company acquired Familypark, a leading theme park in Austria, in March 2019. Compagnie des Alpes also completed a series of intiatives which were popular, such as opening Parc Asterix during the school Christmas holidays for the first time.

A difficult year ahead

However, all Compagnie des Alpes leisure parks are currently closed because of the coronavirus pandemic. They will only be reopened on a case-by-case basis “in accordance with the recommendations of the public authorities…and in compliance with the preferred scenarios pertaining to ending confinement.”

With the company’s parks located all over Europe, it could be a while before they are all able to open, as each country is impacted differently. In a statement, the company stated that its “top priority remains ensuring the health of its employees, customers”.

Cost Adjustment Plan

Given this future uncertainty, Compagnie des Alpes has taken several financial steps. The company believes that it is premature to estimate the impact of these closures on its 2019/2020 results. It has also suspended its 2019/2020 EBITDA margin targets.

Of Compagnie des Alpes’ 5,000 ftes (full-time equivalent employees), around 60% are seasonal workers. Summer hirings will now be based on reopening dates and part-time working will affect 90% of the workforce. The upkeep, maintenance and security of attractions will be ensured.

Compagnie des Alpes also plans to reduce or postpone operating costs by other methods, such as reducing energy costs.

The Chairman and CEO has lowered his fixed compensation by 20%. Members of the Executive Committee and site managers have taken a 10-15% decrease in their pay.

Adjusting investment

In order to “protect its financial situation”, Compagnie des Alpes is adjusting its future investment plans. However, this will mainly be in its Ski division.

The majority of the investments in the leisure parks for the following financial year have already been committed. The third hotel at Parc Asterix, attractions at Futuroscope and Bellewaerde will carry on as normal.

The company is also looking at ways to reduce its investment spending for the next financial year of 2020/2021, especially within its leisure parks.

Compagnie des Alpes remains confident that it will be able to cover its liquidity needs until the end of the year given its current cost reduction plan.

Given the current uncertainties in the attractions industry, SeaWorld and Cedar Fair have both released financial responses to COVID-19.