Jump in profits Titlis Bergbahnen anticipates turnover of 100 million francs by 2028/29
Due to the planned investments, Titlis Bergbahnen expects significantly higher revenue and profits in the long term. At the same time, the sums flowing into the Titlis project - a building by Herzog & de Meuron - are significantly higher than recently communicated.
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- Due to the planned investments, Titlis Bergbahnen is expecting significantly higher revenue and profits in the long term.
- According to current forecasts, turnover should reach the 100 million mark in the 2028/29 financial year
- At the same time, the sums flowing into the Titlis project are significantly higher than recently communicated.
After completion of the multi-year investment program, annual sales are expected to increase to between CHF 100 million and 120 million and annual EBITDA to between CHF 45 million and 55 million, the mountain railroad announced on Monday. According to current forecasts, turnover should reach the 100 million mark in the 2028/29 financial year and then rise to CHF 120 million. This was 72 million in 2022/23.
The company expects EBITDA to increase significantly to between CHF 45 million and CHF 55 million in the years following project completion (financial year 2029/2030). In the past financial year, operating profit amounted to CHF 23 million.
Investments of 150 million
The Titlis project includes a new mountain station on the summit, the extension of the antenna tower and the renovation of the tunnel between the two structures. The investments are expected to amount to CHF 150 million, which is around 13 percent above the budget communicated in May 2023, according to the statement.
The deviation is primarily due to high resources for logistics. However, the construction of a material ropeway from Engelberg to the Titlis mountain station is currently being examined and is not yet included in the investment volume. Higher procurement and wage costs in the construction sector would also play a role.
The Board of Directors has also launched an extensive investment program in parallel with the Titlis project, focusing on renovations and the replacement of existing facilities. Among other things, the Titlis Rotair cable car is to be renovated, a single-track reversible aerial tramway is to be built between Stand and Titlis (Titlis Connect) and an infrastructure channel is to be installed between the valley station of the Ice-Flyer chairlift and the antenna tower.
Construction work on schedule
The financing of all projects is guaranteed by the forecast cash flow and a bank syndicate. Net debt will rise to a maximum of CHF 120 million over the next few years and will gradually decrease from the 2028/29 financial year. From today's perspective, an increase in share capital is not necessary and an appropriate dividend should also be distributed during the investment phase.
Work on the various sub-projects has proceeded according to plan so far, it said. The company is confident that the current construction projects will be completed in 2029.
SDA