Marriott Vacations Worldwide (MVW) has posted net income attributable to common shareholders of $90m for the second quarter (Q2) of 2023, a dip of 34% from $136m last year.
Diluted earnings per share declined by 27% to $2.17 from $2.97 in the year-ago period.
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The company’s revenues for the quarter, which ended on 30 June 2023, grew by 1% to $1.17bn from $1.16bn in 2022.
However, revenues excluding cost reimbursements decreased by 2% to $823m from $840m a year earlier.
The hospitality group attributed this decline in revenues to a 10% year-over-year decrease in the total consolidated Vacation Ownership contract sales to $453m versus $506m a year ago.
The contract sales were mainly impacted by a 14% decline in the volume per guest (VPG), partly offset by 4% higher tours during the reported period.
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By GlobalDataThe company said that it saw larger VPG declines at its legacy-Vistana sites, resulting from continued transition related to the launch of Abound by Marriott Vacations.
MVW’s adjusted earnings before interest, taxes, depreciation and amortisation for the quarter were $222m, down 13% compared with $255m last year.
MVW CEO and president John Geller said: “Occupancy was nearly 90% in Q2 reflecting the continued high demand for vacation experiences from our owners, members and guests.
“However, with tough comparison from last year, as well as the continued transition to the Abound by Marriott Vacations programme and the integration of our Hyatt and legacy-Welk businesses, contract sales declined 10% in the quarter, though we still expect to grow contract sales for the full year and generate significant cash flow from operations.
“While the changes to our programmes impacted our near-term results, I am confident these are the right strategic changes that will position us for long-term growth.”
