Wyndham posts $73m profit in Q4

Feb 15, 2010

Wyndham Worldwide is launching a series of strategic initiatives with the goal of strengthening its brands and delivering its reservation experience that maximises value for both franchisees and consumers.

Published: 15 Feb 2010

Wyndham Worldwide is launching a series of strategic initiatives with the goal of strengthening its brands and delivering its reservation experience that maximises value for both franchisees and consumers.

“Our efforts will focus on the following areas: First we will drive bookings through online channels by improving consumer shopping experience on our brand websites by enhancing connectivity to online travel agents and by increasing product exposure on an OTA websites,” said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. Holmes shared the same while sharing company’s fourth quarter results (transcript posted on Seeking Alpha).

“Next, we’ll increase occupancy and allow for better pricing opportunities by ensuring all our rate plans are consistently available across all channels and by equipment franchisees with more competitive rate information to enable them to make better rate setting decisions. We will continue to invest in our international platform, with a keen focus on priority markets. We expect the multi-wave implementation effort on these and other strategic initiatives over the next few years as we continue to build capabilities that enable future growth.”

Results

Revenues for the fourth quarter of 2009 were $913 million, relatively flat compared with the prior-year period. Net income for the fourth quarter of 2009 was $73 million compared with a fourth quarter of 2008 net loss of $1.4 billion.

Revenues for full year 2009 were $3.8 billion, a decline of 12 percent over the prior-year period, reflecting the following:

  • Lodging revenues were $660 million, a 12 percent decrease compared with 2008, primarily resulting from a global decline in revenue per available room (RevPAR).
  • Exchange and Rentals revenues were $1.2 billion, an 8 percent decrease compared with 2008, primarily resulting from unfavorable foreign exchange rate movements. In constant currency, revenues declined 2 percent.
  • Vacation Ownership revenues were $1.9 billion, a 15 percent decrease compared with 2008, primarily resulting from the company’s previously announced initiative to reduce capital deployed in the business, which included sales office closures and the elimination of certain marketing programmes that resulted in fewer tours.
  • Net income for full year 2009 was $293 million compared with a prior-year period net loss of $1.1 billion.

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