Compagnie des Alpes: Strategic Diversification Amid Climate Challenges and Loss of Tignes DSP

Compagnie des Alpes (CDA) is a leading player in the European leisure industry, operating ski resorts and leisure parks. Since its inception in 1989, the company has distinguished itself by offering unique experiences while adapting to market changes and environmental challenges. Today, CDA manages some of the most iconic ski areas in the Alps and internationally renowned leisure parks such as Parc Astérix and Futuroscope.

Q3 2024 Performance

For the first nine months of the 2023/2024 fiscal year, Compagnie des Alpes recorded consolidated sales of €975.7 million, up 9.2% compared to the same period last year. This growth was primarily driven by an excellent winter season in ski resorts and an increase in average spending per visitor in leisure parks, despite a slight decline in attendance due to challenging weather conditions in the spring.

The third quarter was marked by significant weather challenges, with exceptionally rainy conditions in France and Europe, affecting park attendance. Nevertheless, sales in this division remained robust, reaching €160.8 million, a moderate decline of 1.9% compared to the previous year. The leisure parks division particularly benefited from new investments in attractions, such as those at Parc Astérix and Walibi Rhône-Alpes, which received enthusiastic responses from the public.

Strategic Acquisition of Groupe Urban

In June 2024, Compagnie des Alpes completed the acquisition of 86.5% of Groupe Urban, France's leading five-a-side football and co-leader in padel. This acquisition is part of a diversification strategy aimed at reducing CDA's dependence on ski-related activities, which are particularly vulnerable to climate change. The integration of Groupe Urban allows CDA to expand its leisure portfolio with complementary and fast-growing offerings, further solidifying its position in the leisure market in France and Europe.

Loss of Tignes Public Service Delegation (DSP)

In August 2024, Compagnie des Alpes acknowledged the decision by the Tignes Municipal Council not to renew the DSP for the operation of the ski area from June 2026. The management of this domain will be entrusted to a Local Public Company (SPL). This decision marks the end of nearly 37 years of CDA's management of the Tignes domain, during which significant investments in infrastructure and continuous improvement of the customer experience were made. Despite this loss, CDA remains committed to mountain territories, exploring new opportunities to redeploy capital from this divestment.

Diversification Strategy Amid Climate Risks

The need to diversify has become a priority for Compagnie des Alpes, given the growing risks associated with climate change, which directly affect the viability of ski activities. CDA has implemented a robust strategy to secure its ski areas in the long term, notably through the use of climate modeling tools that optimize artificial snowmaking and sustainably manage water resources. In parallel, the company is enriching its mountain leisure offerings with diversified activities, both in winter and summer, to maintain the attractiveness of the resorts year-round.

Conclusion

Compagnie des Alpes is at a strategic crossroads, balancing increased diversification with managing the impacts of climate change. The acquisition of Groupe Urban and the loss of the Tignes DSP illustrate the company's ability to adapt and reinvent itself in an ever-changing environment. With a strategy focused on diversification and innovation, CDA is well-positioned to continue its growth while navigating future challenges.

You will find attached to this article the presentation file for Compagnie des Alpes.