Vacation ownership and membership travel company Travel + Leisure Co. has announced financial results for the third quarter of this year.
The financial results included in the report are for the three months ended September 30th.
Among the highlights presented in the report are Travel + Leisure’s net quarterly profit of $97 million and net revenue of $993 million. The company also reported diluted earnings from continuing operations of $1.39 per share.
Travel + Leisure also reported adjusted EBITDA of $242 million and adjusted diluted earnings per share of $1.57.
keep priorities in mind
Michael D Brown, president and chief executive officer of Travel + Leisure Co., said the company’s third-quarter results continue to demonstrate strong demand for its products and services and on track for its key 2024 priorities. It shows that it is rising.
Mr Brown said: “We have good momentum in our vacation ownership business and are particularly pleased with the performance of our VPGs, which consistently exceed $3,000, even during peak new ownership periods.
Brown added that Travel and Leisure is already planning for 2025. Mr Brown expects the company’s vacation ownership business to continue to see momentum, with the company achieving its target new ownership mix, Accor’s sales growth and interest rate headwinds easing.
Further progress is also expected in Travel + Leisure’s ongoing travel and membership transformation, which will help stabilize the segment.
Segment results for the third quarter
Vacation Ownership revenue for the third quarter of 2024 was $825 million, an increase of 2% compared to the same period last year.
Vacation ownership (VOI) net sales increased 5% year-over-year despite higher offer rates, and total VOI sales increased 1% despite lower service fee sales.
These increases were driven by a 4% increase in tour numbers compared to the prior year period, partially offset by a 3% decrease in VPG.
Third quarter adjusted EBITDA was $202 million, flat year-over-year due to higher revenue and lower costs of VOI sold, offset by higher sales and marketing expenses.
Meanwhile, travel and membership revenue for the third quarter was $168 million, down 3% compared to the same period last year.
This was due to an 8% decrease in the number of transactions, partially offset by a 3% increase in revenue per transaction.
Third-quarter adjusted EBITDA was $62 million, flat year-over-year as lower sales were offset by increased credit and effective cost management.
Chief Financial Officer Mike Hug commented on the results: Combined with disciplined cost management, VPG largely offset the $14 million year-over-year headwind from rising interest rates and variable compensation. The financial strength of our consumers remains strong and trends in our loan portfolio remained stable during the quarter. ”
Hug said the company’s strong cash generation was driven by $154 million in adjusted free cash flow generated in the quarter and $105 million returned to shareholders through dividends and share repurchases. He added that it was obvious.
Outlook for Q4 2024
Travel + Leisure also released guidance regarding its outlook for the fourth quarter of this year.
The company expects adjusted EBITDA of $240 million to $260 million, total VOI revenue of $550 million to $600 million and VPG of $2,900 to $3,000.
Travel and Membership’s adjusted EBITDA is between $45 million and $50 million.
The company also updated its previous guidance for full-year 2024 Adjusted EBITDA of $915 million to $935 million (unchanged from previous guidance). VOI’s total sales were $2.25 billion to $2.35 billion, compared to previous expectations of $2.25 billion to $2.35 billion. VPG also went from $3,000 to $3,025, compared to the previous outlook of $2,950 to $3,050.
