Travel + Leisure
🇺🇸 NYSE:TNL
•
Dec 31, 2024
Travel + Leisure Q4 2024 Earnings Report
Travel + Leisure reported strong revenue growth but faced pressure on net income and margins.
Key Takeaways
Travel + Leisure Co. saw a 4% YoY increase in revenue, driven by strong Vacation Ownership sales. However, net income declined by 8% YoY due to higher provision rates and cost pressures.
Revenue increased 4% YoY to $971M, driven by Vacation Ownership.
Net income fell 8% YoY to $119M due to higher loan loss provisions.
Vacation Ownership revenue grew 5%, with an 11% rise in net VOI sales.
Operating margin declined slightly to 21.2%, down 0.5 percentage points.
Travel + Leisure Revenue
Travel + Leisure EPS
Travel + Leisure Revenue by Segment
Forward Guidance
The company expects continued growth in Vacation Ownership, driving higher earnings and cash flow in 2025.
Positive Outlook
- Full-year 2025 Adjusted EBITDA expected between $955M and $985M.
- Gross VOI sales projected to reach $2.4B to $2.5B.
- Vacation ownership VPG expected to range from $3,050 to $3,150.
- Travel & Membership Adjusted EBITDA growth forecasted to be flat to up 2%.
- Dividend increase proposal to $0.56 per share in Q1 2025.
Challenges Ahead
- Net income margin pressure from higher provision rates.
- Subscription revenue decline impacting Travel & Membership segment.
- Higher interest expense may weigh on profitability.
- Lower cash balance compared to the previous year.
- Macroeconomic uncertainties could impact discretionary travel spending.