Management report for the financial year 2023/24
Reto Gurtner, Chairman and Delegate of the Board of Directors
2023 was a year of upheaval for the Weisse Arena Group. In the midst of many changes, we replaced our management over the course of the fall and continue to work on becoming a competence-led entity. This transformation is crucial to ensure the future success and sustainable development of our company. The Weisse Arena Gruppe, with its strong LAAX brand, stands for innovation, sustainability and the highest quality in the tourism and leisure industry. This transformation towards a competence-led organization is a natural progression in our quest to always provide the best services and experiences for our guests.
A winter marked by change
In the course of these changes, we had to adapt our working methods, our structures and our way of thinking in order to meet the new requirements – during the current winter season. Despite the mostly poor weather conditions in the second half of the season from mid-February, first-time admissions were up again: overall, we recorded a moderate increase in first-time admissions to 1,028,134 (previous year: 1,015,581), which is satisfactory. However, the record figure from 2021/22 was not reached. The increase in first-time arrivals is entirely due to the very good winter conditions until mid-February. There was also a pleasing 28 % increase in overnight stays over the financial year as a whole to 158,806 (previous year: 114,189).
In December 2023, we reached another milestone with the world first FlemXpress and were able to put the first two sections of the new fully automatic gondola lift into operation. From then on, guests could travel from Flims to Foppa and on to Startgels at the touch of a button. This new technology represented a major challenge for our employees on site and for the companies involved in the project, and a great deal of time and effort was invested in fine-tuning the complex processes in order to further optimize the experience for our guests and the internal processes. Numerous training and further education courses were held in collaboration with our partners SISAG and Bartholet Maschinenbau AG to ensure that our employees have the latest knowledge and necessary skills to guarantee the smooth operation of this innovative railroad system.
Meanwhile, the new Freestyle Academy was built in Laax Murschetg. After the tennis hall built in the 1970s, which had housed the Freestyle Academy since 2010, was demolished, the Freestyle Academy temporarily found a new home in a circus tent. However, it was clear that the Freestyle Academy should return to Laax Murschetg. The proximity to the mountain and the snow parks as well as the combination of on- and off-snow training is what makes this location so special. It is also undisputed that the Academy will greatly enhance the entire leisure offering around the Rocksresort. At 2000 square meters, the new hall is significantly larger than the old hall of 1300 square meters. It is intended to reflect the changes and progress that freestyle sports have undergone in recent years. The underground location of the new hall posed a challenge during construction and in particular during the delivery of the building materials, a large proportion of which came from the old hall. Here, too, everything possible was recycled in the spirit of Greenstyle and so we were able to proudly present our new freestyle cathedral to our guests at the beginning of August.
Improvement in operating performance (profitability) despite decline in sales
Although earnings remained at a high level overall, the previous year’s figure could not be matched despite the first-time consolidation of Larnags AG. The real estate transaction carried out in the last financial year led to the high earnings base of the previous year. The first-time consolidation of Larnags AG was also unable to offset this one-off effect. The focus and orientation towards reducing complexity and optimizing processes in gastronomy led to a disproportionately high decline in costs in relation to income due to the operational optimization of the existing guest volume. As there were no new apartments for sale at rocksresort in the past financial year, this business was unable to contribute to the above-average real estate income of the previous year.
The consistent focus on operating performance had a positive effect on expenses, despite pressure to increase prices. Personnel costs increased due to the first-time consolidation of Larnags AG at Group level. In the existing Group companies, we realized savings in practically all areas compared to the previous year. The profitability and cost-oriented strategy adopted in the past financial year led to a turnaround in the EBITDA margin and EBITDA. Despite the virtually non-existent sales business at Rocksresort in the past financial year, operating EBITDA improved by CHF 5.9 million to CHF 24.0 million or 20.7 % (previous year CHF 18.1 million or 16.4 %).
Thankfulness and confidence
I would like to thank all the employees who helped to bring last year to a successful close. Their commitment and dedication were remarkable. Without the hard work, passion and commitment of each and every one of them, it would not have been possible to overcome the many challenges and implement the many changes. I would particularly like to highlight the flexibility and adaptability that many of them have shown. It is their willingness to always give their best and to continuously develop themselves that makes us strong. In times of change, it is important to be open to new things and to be able to adapt quickly to changing conditions. Our employees have proven that they have these skills, and that fills me with pride and confidence for the future. Together, we can achieve everything we set out to do.
Outlook
Our journey is not over yet, and I am convinced that we will shape a successful future with a strong team. The Weisse Arena Gruppe has always been characterized by its innovative strength and pioneering spirit. I am certain that we will continue to set new standards in the future. We will continue to focus on our core values of freestyle, lifestyle and green style, which set us apart from others. In the coming years, we will continue to invest in our infrastructure and services to offer our guests unparalleled experiences. At the same time, we will expand our sustainability initiatives to do our part to protect the environment and promote sustainable development. Our vision is to establish LAAX as a leading destination in sustainable tourism and leisure.
Another important aspect of our future focus will be to intensify our cooperation with local and international partners. Strong partnerships will enable us to expand our offering, leverage synergies and further strengthen our position in the market. We will also focus more on promoting young talent and expanding training programs in order to provide optimal support for the next generation of specialists. Finally, I would like to emphasize that I firmly believe in our potential and our ability to achieve great things together. With the commitment of all our employees, we will take the Weisse Arena Group to new heights and shape a successful and sustainable future.
Business results of Weisse Arena AG
Net sales
0 TCHF
- 3,7%
EBITDA
0 TCHF
- 14,5%
First admissions
0
+ 1,2%
Overnight stays
0
+ 2%
Interview with Reto Gurtner
“Nothing is as constant as change” – Heraclitus of Ephesus
The past few years have shown worldwide that change is the only constant that companies have to face today. Technological progress, changing customer needs, geopolitical uncertainties and much that is unpredictable require organizations in all sectors to be highly adaptable. As a tourism company, the Weisse Arena Gruppe is also confronted with these challenges. It is therefore essential to break new ground, optimize processes and strengthen the corporate culture in order to be prepared for the future and achieve sustainable growth.
The Weisse Arena Group is known for innovation and disruptive thinking. What vision is currently guiding the Weisse Arena Group and what development is it striving for?
In the coming years, we will have to overcome various challenges in terms of organization and development. One of the main objectives of the Board of Directors is to reduce the complexity that has built up in the management structure in recent years and to make it more transparent and agile in order to make optimum use of the available resources. In principle, however, the Weisse Arena Group is optimally positioned with fully autonomous subsidiaries such as mountain railroads, lodging, gastronomy, sports equipment rental and leisure activities. The task now is to develop and constantly improve the quality of the offer created at all levels through good cooperation and excellent hosts.
How do you operate with regard to winter and summer business?
Winter remains a central part of the Weisse Arena Group, as we have one of the largest contiguous winter sports areas in a breathtaking natural setting, with around 80 percent of the slopes above 2000 meters. While summer offers potential, it is important to understand that the number of guests in winter is not realistic. In summer, there are a variety of alternative activities such as biking, swimming, golfing and hiking that do not require a cable car. It is unlikely that guests will go up the mountain almost every day during their stay in summer, as is the case in winter. Downhill mountain biking also has only limited potential, as a massive expansion of the trail infrastructure would be required, which is hardly feasible from a socio-political point of view in today’s world. But in summary, we are striving for a balanced offer that corresponds to the seasonal number of guests and makes the most of the destination’s unique nature, diversity and hospitality in both winter and summer. In one sentence: We simply want to offer guests an unforgettable experience.
The second section of the FlemXpress is about to open. Many people are looking forward to it, but there has already been criticism that the Segnesboden nature reserve is being overrun. Do you agree with this?
With the imminent opening of the second stage of the FlemXpress in the coming winter and its completion with the final stage to Ils Cugns in summer 2025, we are facing an exciting time full of opportunities. With regard to the concerns, we are confident that, with the support of our guests and the locals, we will find a solution that takes into account both the accessibility of the UNESCO World Heritage Site and its protection.
What about the idea of building a cable car to Elm in Glarus, and are there any other cable cars planned?
The ageing Crap Masegn – Fuorcla – Vorab gondola lift will be replaced by a new 8-seater gondola lift for the 2025/26 winter season. This will probably make us one of the most modern ski resorts in the European Alpine region in terms of our lift infrastructure. We are also constantly looking at new ways to further develop the destination as a year-round destination. Ideas being discussed include a connection to the public transport network of the Rhaetian Railway and the Glacier Express from Versam to the Prau la Selva sports center with a simultaneous connection to Flims and Laax. Another idea or vision is the connection from Elm, Tschentelnalp to La Siala with a connection to the new FlemXpress cableway in Nagens. The construction of these railroads would be technically feasible, but the crucial question is whether the environmental protection organizations and the population would support this project. It should be noted that the Elm project would mean a substantial economic and tourist upgrade for the Glarus Süd region.
What motivates you personally in your role as President of the Weisse Arena Group?
For me, my job is a passionate commitment, my passion and not just an occupation. I am rooted in this region and my goal is to make it even better known internationally in the future and to promote it in general as far as I can.
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