Park City Mountain Resort already is paying off for Vail Resorts.
The resort operator’s last fall is helping offset declines at its California resorts, where record-low snowfall again is haunting ski areas.
During the company’s fiscal 2015 second quarter, mountain revenue climbed 18.2 percent over the same period of 2014. Lift ticket revenue — including sales of the company’s popular Epic Pass — climbed 22.5 percent. The company said visitation was up 15.9 percent at its resorts through January and that those visitors are spending more, with a 22.1 percent year-over-year increase in ski school revenue and an 18.5 percent increase in dining revenue.
“Despite varied weather conditions across our three primary regions, results this fiscal quarter demonstrate the benefit of our geographic diversification and the impact of our destination marketing strategies,” said Vail Resorts chief Rob Katz in
With lodging revenues and a rebounding real estate segment, Vail Resorts’ net revenue for the three months ending Jan. 31 climbed 17.1 percent to $530.2 million. The company reported $115.8 million in net income for the quarter.
But February was rough for the company. Through March 8, the company’s lift revenue growth slowed to 8 percent over the same period last year and skier visits increased 0.3 percent at its nine destination resorts in Colorado, Utah and California.
The drought in California — which has forced the closure of an estimated 20 ski areas in the state with northern and central Sierra Nevada snowpack only 10 to 21 percent of normal — is pinching revenue for the resort operator. The company estimated a $37 million shortfall in revenue from its three California ski areas, Heavenly, Northstar and Kirkwood.
Katz said the robust spending trends on the mountain continued in February and early March, with “strength in Colorado offset by shortfalls” in Tahoe.
Katz also said the 2015 World Alpine Ski Championships, while a marketing boon with television and media coverage, depressed skier visits and financial performance at both Vail and Beaver Creek ski areas.
The company reduced its fiscal guidance from the year from the $340 million to $360 million range it estimated in December to $340 million to $350 million.
Vail Resorts is spending $50 million to connect its Canyons and Park City Mountain Resort ski areas in Utah, creating the largest resort in the country.
The company is planning to replace its Chair 2 at Vail and update snowmaking at both Beaver Creek and Breckenridge.
Vail said it would spend $10 million this year in its first major construction work on its Epic Discovery summer development plan. That includes a mountain coaster, canopy tours and summer tubing at Vail.
The company expects the summer activities to add $4 million to $5 million in resort earnings in 2016 and 2017.
“We believe Epic Discovery, our summer initiative, is an incredible opportunity to leverage our existing infrastructure and capitalize on the large number of guests already visiting certain resort destinations during the summer months,” Katz said in the statement.
Jason Blevins: 303-954-1374, jblevins@denverpost.com or twitter.com/jasonblevins
