Vail Resorts Inc. released its second-quarter earnings Monday, stressing that dismal snowfall during the early season put the crush on net income.
In the quarter that ended Jan. 31, net income was $51.3 million, compared with $53 million during the same period a year earlier. Broomfield-based Vail Resorts’ revenue fell 0.3 percent to $360 million from $361 million.
Lodging and mountain operations revenue increased 3.2 percent to $314.5 million. The real-estate segment saw a 19 percent drop in revenue to $45.5 million.
“We are keenly aware of the current challenges in the broader economy, and our company cannot be immune to impacts to the broader travel industry,” said Rob Katz, Vail Resorts chief executive. “However, our business remains very solid since the weather challenge in the early season.”
Katz outlined four factors that have affected the season: early bad weather and great late-season weather; season-pass sales up 11 percent; international business up 23 percent; and soft domestic business this year.
The company’s net income decreased in the fiscal second quarter after poor snowfall kept ‘boarders and skiers off the mountains in the early season, causing lift-ticket revenue to fall 13.6 percent and non-pass-holder skier visits to decline 5.3 percent.
Once the holidays and the snow arrived, skiers flocked to the resorts, causing an 11.1 percent hike in lift-ticket revenue as compared with the same period in 2007, for a total quarter increase of 4.2 percent.
Katz said an increase in international travelers helped make up for the shortfall domestically.
“They stay longer and account for more revenue on a per-trip basis,” Katz said.
Elizabeth Aguilera: 303-954-1372 or eaguilera@denverpost.com
