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2020-06-11

Tivoli expects a significant loss due to significantly fewer guests

The COVID-19 pandemic has had a major impact on Tivoli's business and will continue to do so in the future.

Following the opening of the summer season on June 8, 2020 - well over two months later than planned - Tivoli continued to be affected by a number of restrictions, including the inability to host concerts and other major events, lower capacity for rides and restaurants, and lack of foreign tourists in Copenhagen as a result of restrictions on entry and accommodation in the Capital.

In the short and medium term, Tivoli's activities are expected to continue to be influenced by significantly fewer foreign tourists in Copenhagen and potential changes in Danes' consumption patterns. Add to this the effects of the current government restrictions that are unknown for the duration.

This significantly reduces expectations for Tivoli's activity level, guest numbers and revenue in the coming years. The uncertainty is particularly related to the prospects for a normalization of foreign tourism, which has historically been approx. 30% of Tivoli's guests.

The above makes it difficult to give specific expectations for the profit for the year before tax, but Tivoli cannot exclude a loss of up to approx. DKK 100 million. Despite the recognition of the compensation schemes that Tivoli has benefited greatly from, It differs sharply from Tivoli's normal, ordinary result, which in recent years has been approx. DKK 100 million.

As a consequence, a number of initiatives are needed to adjust the company's cost structure. A number of investments have been canceled or put on hold, and Tivoli intends to dismiss approx. 20% of its staff, which may affect 440 positions. The 440 employees are both full-time and seasonal employees - and that equates to a total of 220 full-time job reductions.

The chairman of the Supervisory Board, Tom Knutzen, says:
“The situation is serious for Tivoli. We are looking into a 2020, where Tivoli's attendance figure and revenue are strongly characterized by the fact that far fewer foreign tourists come to Copenhagen because of the border closure and restrictions on overnight stay in the capital. This also seems to be reaching into the coming years. Therefore, it is necessary for Tivoli to make changes in the organization in order to reduce labor costs and thus restore a sustainable business ”.

CEO Lars Liebst says:
“I have never hidden the fact that Tivoli lost a lot of money during the shutdown. With the bleak outlook for tourism in particular in this and coming seasons, Tivoli needs to adapt its business to suit the lower level of activity. It goes without saying that when there are no tourists, who usually make up 30% of our guests, we experience a significant drop in revenue. By making this adaptation in the business, we pave the way for Tivoli to continue to invest in good experiences for our guests and be an attractive workplace. It is deeply concerning to us that it has become necessary to say goodbye to so many talented and loyal employees who have helped develop Tivoli."

Tivoli initiates discussions with trade unions and employment councils in accordance with current regulations. The specific layoffs will take place later in June.

Best regards

Tom Knutzen                               Lars Liebst
Chairman                                    CEO

Contactperson: Head of press, Torben Plank, 22237440 / tpl@tivoli.dk

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Författare Tivoli A/S

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