Whistler Blackcomb Holdings Inc. has recently reported a $7 million dollar loss in the third quarter of the 2011 season. The loss, which was measured from April 1 to June 30 2011 has been calculated after deducting depreciation and amortization expenses. Although this news comes as quite a surprise due to their increased revenue and customer visits during the past year, the chief financial officer Kevin Smith said that the loss was common for a third quarter.
Revenue during this time decreased by one percent to 31 million, but then increased by 22 percent the following 9 moths after June 30th. Similarly, effective Ticket Price during the third quarter of 2010 decreased by 17 percent to $36.79 and then increased by 6 percent to $47.06. The decrease in Effective Ticket Price is reportedly the result of “timing of recognition of frequency card deferred revenue over the 2009/2010 ski season for accounting purposes. ”
In other areas of revenue loss, resort operating expenses decreased by 9 percent then went up 7 percent, which can was primarily the result of increases in labor and benefit costs, along with other operating expenses.
Whistler Blackcomb’s chief operating officer Dave Brownlie stated that, “Overall we are pleased with our performance over the third quarter and for the 2010/2011 season. First we completed our IPO in November, second we have paid out our first three quarterly dividends, including on July 25, and finally we achieved record season passes and frequency card sales, which played a key role in returning visits to pre-Olympic levels surpassing the two million visit mark once again.”
While this news comes at a time where our financial markets are facing great challenges, Brownlie remains hopeful, stating that, “We believe the change is a result of the economic environment, the strength of the Canadian dollar and the cost of air travel to Vancouver. As our management team ramps up for the upcoming season, our main focus is on increasing destination visitation to historical levels.”