The operator of ski resorts, Vail Resorts, is preparing to submit a quarterly report
The owner of ski resorts Vail Resorts Inc. (MTN), on Thursday, December 9, plans to publish a report for the first quarter of the fiscal year 2022. The figures presented will show how successful the current season will be.
Despite the partial lifting of restrictions, the COVID-19 pandemic continues to be the main risk for Vail Resorts. However, the company is already benefiting from pent-up demand due to last year’s downtime of resorts. So, profit and revenue will likely increase in the first quarter compared to the previous year.
At the beginning of the winter season, Vail Resorts made a bet on increasing the sale of season tickets, even if they will sell them at a lower price. The fact is that with a more significant number of visitors, Vail Resorts can count on revenue growth due to rental housing, food sales, and services.
According to the latest data, season tickets sold have increased by 42% yearly. However, the company also notes that the increase occurs at the expense of existing customers who renew their membership and new tourists. The average investor estimate suggests sales growth of up to $200 million compared to $132 in the same quarter a year earlier.
Ideally, sales of season tickets will also be high, but the figures presented should show whether this can increase revenue. But, most likely, due to pandemic uncertainty, Vail Resorts will not provide a forecast for the entire 2022 fiscal year.
According to Wall Street forecasts, the profit will be from $302 million to $367 million in the current fiscal year. Before the pandemic, Vail Resorts announced plans to modernize some resorts seriously. Now, despite the coronavirus, the company continues to invest in expansion.
Vail Resorts restored work on projects suspended due to lockdown in the third fiscal quarter. Vail Resorts expects capital investments in 2022 to be in the range of $315 million to $325 million. At the auction on December 3, MTN stock was worth $327.43.
