Go to the mobile version of this Web site.

Login | Contact Us | Site Map | Paid archives | Electronic edition | Subscription Questions | Extras

Vail Resorts' first quarter hurt by lag in room bookings

Season pass sales are up, however

By Joanne Kelley, Rocky Mountain News (Contact)

Published December 10, 2008 at 12:05 a.m.
Updated December 10, 2008 at 12:23 a.m.

Text size  

More Skiing & Tourism

More stories »

Vail Resorts Inc. reported a wider loss in its fiscal first quarter, with executives warning that weak early-season bookings at its ski resorts could dampen results in the months ahead.

The Broomfield-based ski-area operator lost $34.5 million, or 93 cents a share, during the three months ended Oct. 31, a typically slow period because its mountain resorts are not open for skiing. Its traditionally strong quarters could also prove challenging given the economic downturn.

"While our season pass sales have been relatively strong, our advanced lodging bookings have not improved," said Robert Katz, Vail's chief executive.

The company owns and manages luxury hotels as well as five ski areas: Vail, Beaver Creek, Breckenridge, Keystone and California's Heavenly.

On the upside, Vail managed to post an increase in both the number and value of season passes sold ahead of the winter ski season. So far, it has sold 204,000 passes, up from 173,000 last year. It collected $90.9 million in ski pass revenues vs. $70.5 million a year ago, with its new unlimited Epic pass aimed at out-of-town visitors helping to fuel the growth.

But fewer travelers have been reserving lodging this winter at Vail properties. Bookings are down 23 percent from last year, reflecting a similar trend elsewhere, the company said.

Vail's earnings results fell short of forecasts. Analysts surveyed by Thomson Reuters expected a loss of 83 cents per share on revenue of $138.9 million.

The quarterly results compared with $24.6 million or 63 cents a share in the same period last year. Fiscal first-quarter revenue jumped 56 percent to $152.8 million, from $97.9 million in the first quarter of fiscal 2008. Revenue benefited from the timing of certain real estate deals.

The company said it plans to disclose data on skier visits more frequently this winter to provide another measure on the season's progress.