Vail Resorts, Inc. (NYSE:MTN) stock fell 6.34% (As on June 9, 11:47:31 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the third quarter of FY 23. Total lift revenue decreased $4.7 million, or 0.7%, compared to the same period in the prior year, to $710.1 million for the three months ended April 30, 2023, primarily due to a decrease in North American pass product revenue, partially offset by an increase in non-pass lift ticket revenue. For the quarter, pass product revenue decreased 3.6%, which was primarily driven by the timing of recognition of pass product revenue as a result of the prior year impact of delayed resort openings due to challenging early season conditions in the 2021/2022 North American ski season and early resort openings in the current 2022/2023 North American ski season.

Moreover, Ski school revenue increased $24.2 million, or 20.0%, dining revenue increased $21.9 million, or 27.4%, and retail/rental revenue increased $8.5 million, or 6.7%, each primarily driven by the greater impact of COVID-19 and related limitations and restrictions in the prior year, including staffing challenges which limited our ability to operate at full capacity, as well as increased skier visitation which drove additional demand for ancillary products and services. Mountain Reported EBITDA increased $10.9 million, or 1.8%, for the third quarter compared to the same period in the prior year. Lodging segment net revenue (excluding payroll cost reimbursements) for the three months ended April 30, 2023 increased $1.0 million, or 1.2%, as compared to the same period in the prior year, primarily due to increases in ancillary and other revenue, partially offset by a reduction in revenue from the DoubleTree at Breckenridge hotel, which we sold after the 2021/2022 ski season. Resort net revenue increased $61.7 million, or 5.2%, compared to the same period in the prior year, to $1,238.3 million for the three months ended April 30, 2023.

MTN in the third quarter of FY 23 has reported the adjusted earnings per share of $8.18, missing the analysts’ estimates for the adjusted earnings per share of $8.88, according to Zacks Investment Research. The company had reported 5.2 percent increase in adjusted revenue of $1.24 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $1.25 billion. Net income attributable to Vail Resorts, Inc. was $325.0 million for the third quarter of fiscal 2023 compared to the net income attributable to Vail Resorts, Inc. of $372.6 million in the third quarter of the prior year.