Vail Resorts, Inc. (NYSE:MTN) Q1 2024 Earnings Call Transcript

Megan Alexander: Okay. Fair enough. And then Kirsten, you talked about creating a network in Europe similar to what you’ve done in the U.S. to drive that pass penetration. How do you — I know it’s early, but think about the level of scale you might need, whether it’s in a localized market like Switzerland or Europe in general, to be able to do that. When you think about kind of the differences between Europe and the U.S., what are some of the highlights in terms of how you think about what kind of scale you might need there?

Kirsten Lynch: Well, we view Europe as a huge market and a big opportunity, and I would say a long-term growth strategy that we will — we have a lot to learn as being new operators in the market with Andermatt-Sedrun and with the closing of Crans-Montana, and I think we have some initial thinking on what we think that network or that scale would need to be. But obviously, being there in market and being an operator in the market will certainly refine and help us think about that and the evolution of that and what that means in terms of owned and operated resorts versus partner resorts. I would say that our business model is, I think, structured in a way that can be very beneficial in Europe because our business model is structured in such a way that is driven by advanced commitment and that stability that creates some protection from the impacts of climate change, it also creates strong free cash flow that enables real reinvestment in these resorts.

And we still have a lot to learn on how that business model may need to adjust or evolve in order for us to be successful in a market like Europe. So, we view this as a long-term growth strategy that we’re very excited about, but I don’t think I can give you a specific answer right now because the market dynamics are quite different than North America, and we want to be very thoughtful and cognizant as we go new into this market.

Megan Alexander: Understood. Thanks very much.

Kirsten Lynch: Thanks, Megan.

Operator: This concludes the Q&A portion of today’s call. I would now like to turn the call back over to Kirsten Lynch for closing remarks.

Kirsten Lynch: Thank you, operator. This concludes our fiscal 2024 first quarter earnings call. Thanks to everyone who joined us today. Please feel free to contact me or Angela directly, should you have further questions. Thank you for your time this afternoon. Goodbye.

Operator: This concludes today’s Vail Resorts fiscal first quarter 2024 earnings call and webcast. You may disconnect your line at this time, and have a wonderful day.