Alpine World Ski Championships – a success for Åre

2007-06-12 10:38

The success, both sporting and organisational, of the Alpine World Ski Championships, held between 3-18 February this year, is a long-standing fact.

-The World Championships were also a resounding success for Åre as a winter sports destination, due to comprehensive international marketing and major investments, says Mats Årjes, CEO, SkiStar AB.

Since 2000, close to SEK 3 billion has been invested in Åre, in everything from infrastructure to tourist accommodation and restaurants. The rate of investment is expected to remain high during the coming years. A number of investments have also been carried out in the skiing area, including a new 8-chair lift, a new ski run and an expanded snowmaking system.

Åre has benefited from comprehensive international marketing via TV broadcasts and foreign media coverage. A total of 563 million people in 24 countries saw the coverage from Åre. Currently, just over 20% of visitors to Åre are foreign, a number which is expected to increase during the coming years.

It is now becoming clear that the Alpine World Ski Championships in Åre were also a financial success. VM 2007 AB, which arranged the Alpine World Ski Championships, forecasts an aftertax profit of MSEK 25. According to contract, SkiStar receives 50% of the profit up to MSEK 20, and thereafter in accordance with its participating interest of 15%. 70% of the outstanding shares in Åre 2007 AB are owned by Svenska Skidförbundet and 15% by Åreföretagarna. Apart from the company's investments in the VM8:an chair and gondola lift, the profit share agreement is an effect of SkiStar's investment of MSEK 42 in World Championship-related investments, a necessity for the successful implementation of the event. SkiStar's portion of the profit is estimated to total MSEK 11 and will be reported as a dividend during the fourth quarter.

If you have any questions concerning the press release please contact CEO Mats Arjes or CFO Magnus Sjoholm on the numbers indicated on the release.

Mats Årjes, CEO, Tel +46 280-880 80
Magnus Sjöholm, CFO, Tel +46 280-880 90

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