Marriott Vacations Worldwide Corporation ( (VAC) ) has released its Q4 earnings. Here is a breakdown of the information Marriott Vacations Worldwide Corporation presented to its investors.
Marriott Vacations Worldwide Corporation is a prominent global vacation company that specializes in vacation ownership, exchange, rental, and resort and property management services, maintaining exclusive relationships with Marriott International and Hyatt Hotels for vacation ownership products.
In its latest earnings report, Marriott Vacations Worldwide announced a solid performance for the fourth quarter of 2024, with a 7% increase in consolidated vacation ownership contract sales, reaching $477 million. The company also reported a net income of $50 million, translating to $1.30 per diluted share, with adjusted net income at $73 million or $1.86 per adjusted diluted share.
Key financial metrics revealed a 12% increase in revenues excluding cost reimbursements, totaling $817 million, driven by an 8% rise in tours. However, the segment adjusted EBITDA saw a decrease due to lower development and financing profit, despite higher rental and management profits. The Exchange & Third-Party Management segment faced a 13% decline in revenues, attributed to lower exchange revenue and reduced management fees.
Looking ahead, Marriott Vacations Worldwide has provided guidance for 2025, projecting contract sales between $1,850 million and $1,925 million, with adjusted EBITDA expected to range from $750 million to $780 million. The company aims to enhance revenue growth and operational efficiencies, targeting $150 million to $200 million in run-rate benefits by 2026.
Overall, Marriott Vacations Worldwide remains focused on leveraging its leisure-focused business model to deliver exceptional experiences to its owners, members, and guests, while seeking opportunities to accelerate growth and improve operational efficiencies.
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