Q1 2025 Travel + Leisure Co Earnings Call Transcript
Key Points
- Travel+Leisure Co (TNL) delivered $202 million of adjusted EBITDA, reaching the high end of their guidance range.
- The Vacation Ownership business showed strong performance with VPGs well above $3,000, contributing to a 22% increase in consolidated adjusted EBITDA margins.
- The company increased its dividend by 12% to $0.56 per share and repurchased $70 million worth of shares, returning significant capital to shareholders.
- The Club Wyndham app has seen increased adoption, with nearly 100,000 downloads, leading to a 71% search-to-book conversion rate, a 22% increase compared to the owner website.
- Travel+Leisure Co (TNL) maintained strong forward bookings and travel trends, indicating consumer resilience despite macroeconomic uncertainties.
- The Travel and Membership segment experienced a 7% decline in revenue and a 9% decrease in adjusted EBITDA, driven by a 13% decline in exchange transactions.
- Tour flow in the Vacation Ownership segment was down 1% for the quarter, although there was year-over-year growth in March.
- The improvement in portfolio delinquencies typically seen from December to March did not occur, leading to an increased provision rate assumption of 21%.
- The booking window decreased from 130 to 116 days compared to the previous year, indicating a potential shift in consumer booking behavior.
- There is increased uncertainty in the macroeconomic outlook and consumer sentiment has progressively fallen in 2025, which could impact future performance.
Greetings, and welcome to the Travel + Leisure Q1 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Mike Hug, Chief Financial Officer. Please go ahead, Mike.
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Thank you, Kevin. Good morning to everyone. Before we begin, we would like to remind you that our discussions today will include forward-looking statements. Actual results could differ materially from those indicated in the forward-looking statements, and the forward-looking statements made today are effective only as of today.
We undertake no obligation to publicly update or revise these statements. The factors that could cause actual results to differ are discussed in our SEC filings and in our earnings press release accompanying this earnings call. And you can find a reconciliation of the non-GAAP financial measures discussed in today's call in the earnings press release available on our website at travelandleisureco
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