Travel and leisure company Vail Resorts (MTN) reported better than expected revenues for the second quarter of 2019, aided mainly by strong guest arrivals during the holiday season. The company also raised its quarterly dividend, driving the stock higher in the pre-market trading Friday.
Total revenues rose 15.7% year-on-year to $849.6 million from $734.6 million in the year-ago period and surpassed analysts’ forecast. The topline benefitted from an increase in visitation and higher spending by guests, especially during the holiday weeks.
Total lift revenue rose about 17% year-over-year during the quarter, aided by double-digit growth in skier visitation. There was a 16% increase in lodging revenue, helped mainly by incremental revenue from the Triple Peaks resorts and Tahoe lodging properties. Total resort revenue was up 15%
Meanwhile, net income attributable to shareholders dropped to $206.35 million or $5.02 per share from $235.69 million or $5.67 per share in the second quarter of 2018 when the results had benefitted from a one-time tax benefit.
EBITDA, a metric that provides a more accurate picture of the company’s performance, rose to $356.85 million in the second quarter from $308.37 million a year earlier.
“Our destination guest visitation was largely in line with expectations during the key holiday weeks and through the remainder of January. Throughout the quarter, with the favorable conditions at our U.S. resorts, we saw strong visitation growth among our local guests, who are primarily pass purchasers,” said CEO Rob Katz.