AEVIS VICTORIA SA: consolidated revenues for the first quarter of 2020 reach CHF 194.8 million, up 9.9% due to acquisitions

AEVIS VICTORIA SA / Key word(s): Development of Sales

12-May-2020 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
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Press release

Fribourg, 12 May 2020

AEVIS VICTORIA SA: consolidated revenues for the first quarter of 2020 reach CHF 194.8 million, up 9.9% due to acquisitions

The investment company AEVIS VICTORIA SA (AEVIS) achieved revenues of CHF 194.8 million in the first quarter of 2020, up 9.9% compared to 2019 (CHF 177.3m). The growth is explained by the acquisitions of Privatklinik Belair (consolidated since 1 October 2019), the Mont Cervin Palace and Monte Rosa hotels (consolidated since 1 November 2019) and the hotel Intercontinental in Davos (consolidated since 1 January 2020). Net revenues (medical fees excluded) amounted to CHF 171.6 million, an increase of 11.5% compared to 2019 (CHF 153.9m). The group of private hospitals Swiss Medical Network, AEVIS' main participation, recorded slightly lower revenues of CHF 152.3 million (2019: CHF 159.6m) in the first quarter of 2020, due to the ban on non-urgent medical procedures imposed by the Federal Council on 20 March 2020. The activity was however growing steadily in the first two months of the year. Revenues in the hospitality segment rose to CHF 38.3 million (2019: CHF 12.5m) due to acquisitions. The early closure of the mountain hotels only slightly affected the excellent 2019/2020 winter season experienced in Switzerland. However, the remainder of the year is shaping up to be very difficult for the tourism and hotel industry.

2020 had started well for Swiss Medical Network, but this positive trend was abruptly interrupted by the special measures related to the Covid-19 pandemic. From the very beginning of the crisis, even before the federal ordinance prohibiting non-urgent medical procedures, all of Swiss Medical Network's hospitals had made their resources available to the cantons to optimise the management of this pandemic and had adapted their activities to the situation. The hospitals, whose non-urgent medical procedures were interrupted on 20 March 2020, all resumed their normal activities on Monday 27 April 2020 and most of them have already regained their cruising speed. While Swiss Medical Network expects the activity to catch-up in the coming months, the medical and hospital sectors will see their costs rise significantly due to the special measures required for the resumption of operations. The question of financial compensation is currently under discussion at various levels and will probably be resolved by the umbrella associations with the cantonal authorities and the confederation in the coming months. The overall assessment of the pandemic for the health sector in Switzerland will only be determined at the end of the year, when the situation has normalised.

For the hospitality sector, the impact of the pandemic will probably remain for several years with regard to the international customers. Victoria-Jungfrau and Michel Reybier Hospitality however rely on domestic tourism to partially offset the cancellations of international guests and the decline in MICE activities. The city hotels (La Réserve Eden au Lac in Zurich and Bellevue Palace in Bern) reopened their doors on 11 May 2020 and the Grand Hotel Victoria-Jungfrau will welcome its guests from 29 May 2020. As far as the mountain destinations are concerned, decisions will be made as soon as the visibility on international travel has improved.

AEVIS will redeem its CHF 55 million bond issue on 29 June 2020 with its existing liquidity and credit lines. The Group does not rule out calling on the financial markets during the second quarter, if the situation normalises, in order to finance its growth and seize acquisition opportunities that arise during this difficult period. Isolated players will have to rely even more on diversified groups to get through the crisis, and consolidation should accelerate in AEVIS' three investment sectors.

For further information:
AEVIS VICTORIA SA Media and Investor Relations: c/o Dynamics Group, Zurich
Philippe R. Blangey, prb@dynamicsgroup.ch, +41 (0) 43 268 32 35 or +41 (0) 79 785 46 32
Séverine Van der Schueren, svanderschueren@aevis.com, +41 (0) 79 635 04 10

AEVIS VICTORIA SA - Investing for a better life
AEVIS VICTORIA SA invests in healthcare, hospitality & lifestyle and infrastructure. AEVIS′s main shareholdings are Swiss Medical Network SA, the only Swiss private network of hospitals present in the country's three main language regions, Victoria-Jungfrau AG, a luxury hotel group managing luxury hotels in Switzerland, Infracore SA (30%, directly and indirectly), a real estate company dedicated to healthcare-related infrastructure, a hospitality real estate division, Medgate (40%), the leading telemedicine provider in Switzerland, and NESCENS SA, a brand dedicated to better aging. AEVIS is listed on the Swiss Reporting Standard of the SIX Swiss Exchange (AEVS.SW). www.aevis.com.