Vail Resorts Inc. reported Thursday a 52 percent drop in fiscal 2009 net income as the weak economy hurt tourism spending.
The ski-resort operator reported net income of $48.95 million, or $1.34 a share, on revenue of $977 million, compared with 2008 net income of $102.9 million, or $2.67 a share, on revenue of $1.15 billion.
Despite the income drop, chief executive Rob Katz said Vail Resorts has weathered the recession better than other ski resorts in Colorado and Utah.
Vail Resorts’ 5.3 percent decline in skier visits last ski season was less than the rest of Colorado’s ski areas — which were down 6.9 percent — and Utah’s 6.5 percent loss.
Katz termed the financial performance “solid, given the unprecedented economic environment and impact on the travel and leisure sectors.”
He said the company benefited from a series of cost-cutting measures that included across-the-board wage cuts of 2 percent to 10 percent, for annual payroll savings of $10 million, and a program to consolidate equipment purchasing for all Vail Resorts properties.
The company operates Vail, Beaver Creek, Breckenridge, Keystone, Heavenly Ski Resort at Lake Tahoe and the Grand Teton Lodge Co. in Jackson Hole, Wyo. Vail Resorts subsidiary RockResorts manages luxury hotels in the U.S. and the Caribbean.
Katz said Vail Resorts expects better financial results next year as the economy improves and visitors capitalize on a new marketing push that includes promotions and discounts for season passes, on-mountain dining and ski-school programs.
Katz said Vail Resorts has shifted its marketing away from traditional print media such as skiing magazines in favor of online and social media.
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