Travel + Leisure Co. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a modest increase in net revenues but a decline in profitability compared to the same periods in 2023.
For the three months ended September 30, 2024, net revenues reached $993 million, up from $986 million in the prior year. For the nine-month period, revenues increased to $2,893 million from $2,814 million. The Vacation Ownership segment saw a notable rise in sales, with vacation ownership interest sales totaling $455 million for the third quarter, compared to $433 million in 2023, and $1,265 million for the nine months, up from $1,172 million.
Despite the revenue growth, total expenses also increased, rising to $804 million for the third quarter from $779 million in 2023, and to $2,366 million for the nine months from $2,283 million. This led to a decrease in operating income, which fell to $189 million for the third quarter from $207 million, and to $527 million for the nine months, down from $529 million. Net income attributable to shareholders for the third quarter was $97 million, down from $110 million, while for the nine months, it increased to $292 million from $267 million.
The company’s restructuring efforts included $14 million in charges during the third quarter, primarily aimed at enhancing organizational efficiency, which involved a reduction of approximately 300 employees. This follows a previous restructuring in 2023 that incurred $26 million in charges and reduced around 250 employees.
Travel + Leisure Co. also made strategic acquisitions, including the purchase of Accor Vacation Club for $50 million in March 2024, which is expected to enhance its Vacation Ownership segment and expand its international portfolio. The company reported a gain of $32 million on the disposal of a discontinued business during the nine months, compared to a $5 million gain in the previous year.
Cash and cash equivalents decreased to $194 million as of September 30, 2024, from $282 million at the end of 2023. The company’s total assets decreased slightly to $6,698 million, while total liabilities also fell to $7,559 million. The total deficit improved to $(861) million from $(917) million.
Overall, while Travel + Leisure Co. experienced revenue growth, increased expenses and restructuring efforts impacted profitability, alongside strategic acquisitions aimed at future growth.
About Travel & Leisure Co.
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