In an earnings call Thursday, Vail Resorts reported a profit of $301.2 million for the fiscal year, with increased revenues and visitation across its growing collection of resorts, reports Vail Daily. Total mountain net revenue increased 13.5%, to about $2 billion, for the year, which ended July 31.
“Our results throughout fiscal 2019 highlight the growth and stability resulting from our season pass, the benefit of our geographic diversification, the investments we make in our resorts and the success of our sophisticated, data-driven marketing efforts,” said Vail Resorts CEO Rob Katz.
Against last year, here are some of the significant numbers:
- Skier visits were up 21.5% (driven by the acquisition of new resorts, as well as good snow conditions across the US)
- Lift revenue was up 17.4%
- Ski school revenue was up 13.2%
- Dining revenue was up 12.7%
- Lodging revenue was up 10.9% compared to the previous year
- Retail/rental revenue was up 8%
Looking ahead, pass sales for the upcoming 2019-20 season were up about 15% in sales dollars compared to the same period last year. Katz said the company is seeing “strong results in our destination markets” while local markets show “solid growth.” But local sales in Colorado are “more modest” compared to Northern California and Utah, he added, possibly as a result of the newly introduced Ikon Pass.
Katz noted that investment at Vail, Beaver Creek, and Keystone in snowmaking upgrades will result in Vail being able to begin early-season snowmaking in the Mid-Vail area and to enable Keystone to be among the first resorts to open for the year in the US.
The company also acknowledged the deal that closed Tuesday to acquire 17 ski areas from Peak Resorts for about $265 million. The resorts are near the urban areas of New York; Boston; Washington; Baltimore; Philadelphia; Cleveland; Columbus, Ohio; St. Louis; Kansas City, Missouri; and Louisville, Kentucky.
“It will give some of the major population centers access to skiing on the same pass where they can access destination resorts within our network,” Michael Barkin, the company’s executive vice president and chief financial officer said.
The company will also gain the ability to mine data from the new customers, which it can then use to market relevant products to them, Barkin said.