Wyndham Worldwide Posts Q4 Profit

14th February 2010 (Last Updated February 14th, 2010 18:30)

Wyndham Worldwide has reported a fourth-quarter profit for 2009, with overall net income standing at $73m compared with 2008's net loss of $1.36bn. In addition to an increase in Wyndham's quarterly cash dividend, the company also announced plans to resume its share repurchase programme.

Wyndham Worldwide has reported a fourth-quarter profit for 2009, with overall net income standing at $73m compared with 2008’s net loss of $1.36bn.

In addition to an increase in Wyndham’s quarterly cash dividend, the company also announced plans to resume its share repurchase programme.

The company said it will raise its dividend to 12¢ a share from 4¢, beginning with the payout declared for the current quarter.

Net cash from operating activities rose to $690m for the year from $109m in 2008, Wyndham said.

Wyndham Worldwide chairman and CEO Stephen P Holmes said the company remained focused on cash flow generation, transforming the company by rebalancing its worldwide business portfolio to its fee-for-service businesses and positioning businesses for future earnings growth.

The company expects its 2010 revenue will be between $3.5bn to $3.9bn and earnings before interest, taxes, depreciation and amortisation (EBITDA) to be between $775m to $825m.

Fourth quarter 2009 earnings before EBITDA was $194m compared with negative $1.28bn a year earlier, according to the company.

Fourth-quarter revenues stood at $913m while revenues for full year 2009 stood at $3.8bn, which is a fall of 12% over the same period in the previous year.

Wyndham Worldwide is one of the largest hospitality companies in the world.