Q2 2024 Marriott Vacations Worldwide Corp Earnings Call Transcript
Key Points
- Rental profit in the Vacation Ownership segment increased by more than 60% compared to last year, with margins improving to over 20%.
- First-time buyer tours grew by 9%, reflecting the company's strategy to attract new owners.
- Resort occupancies were up more than a point year-over-year, driven by a four-point improvement in rental occupancies.
- Interval International ended the quarter with more than 1.5 million active members, maintaining inventory utilization in the low 90% range.
- The company expects to generate higher first-time buyer tours in the second half of the year, with nearly 270,000 packages confirmed for vacations.
- Contract sales declined 1% for the quarter due to lower VPGs (Volume Per Guest).
- Loan delinquencies did not improve as expected, necessitating an increase in the sales reserve by $70 million.
- Development margin declined year-over-year due to lower VPGs and higher marketing and sales costs.
- Adjusted EBITDA in the Vacation Ownership segment declined 26% year-over-year.
- Maui's recovery is slower than expected, leading to a projected $10 million decline in contract sales for the full year.
Greetings, and welcome to the Marriott Vacations Worldwide Second Quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Neal Goldner, Vice President, Investor Relations. Thank you, Neil, you may begin.
Thank you, Paul, and welcome to the Marriott Vacations Worldwide Second Quarter Earnings Conference Call. I am joined today by John Geller, our President and Chief Executive Officer, and Jason Marino, our Executive Vice President and Chief Financial Officer.
I need to remind everyone that many of our comments today are not historical facts and are considered forward-looking statements under federal securities laws. These statements are subject to numerous risks and uncertainties, which could cause future results to differ materially from those expressed in or implied by our comments.
Forward-looking statements in the press release as well as comments on this
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