Core Insights - The white paper titled "2025 Pan-Asian RMN Trends" provides valuable insights into the rapidly growing Asian Retail Media Network (RMN) market, highlighting its potential for businesses looking to capitalize on this sector [2][3][4]. Industry Overview - eMarketer projects that global RMN ad spending will reach $140 billion by 2024, indicating significant growth potential in the advertising landscape [3]. - Taiwan's retail media market is estimated to be worth NT$70 billion in 2023, showcasing the robust growth opportunities within the region [3]. Company Background - TNL Mediagene, formed from the merger of Taiwan's The News Lens Co. and Japan's Mediagene Inc. in May 2023, operates across various media platforms in Chinese, Japanese, and English [4]. - The company focuses on delivering original and licensed media content, AI-powered advertising solutions, and e-commerce services, with a workforce of approximately 550 employees across Asia [4]. Collaborative Efforts - The collaboration between INSIDE, Digiday Japan, and Ad2 aims to provide actionable insights into the Asian RMN market, enhancing the understanding of digital advertising trends [2][6]. - INSIDE focuses on Taiwan's digital marketing trends, while Digiday Japan specializes in Japan's RMN landscape, and Ad2 showcases real-world case studies of RMN effectiveness [6].

Core Insights - Ad2 AI Agent integrates AI Audience and AI Creative to enhance brand targeting, ad placement, and creative strategy, reducing manual decision-making while improving efficiency and accuracy [1] - The shift from Predictive AI to Generative AI and AI Agents allows Ad2 AI Agent to automate campaign planning, audience targeting, and ad deployment, offering one-click marketing solutions [2] - Ad2 adheres to IAB's Data Clean Room standards, ensuring privacy-compliant advertising in a landscape where cookie tracking is diminishing [3] - The launch of Retail Media Network 2.0 in 2024 enables brands to utilize retail insights across various media channels, with Ad2 AI Agent integrating consumer behavior analysis into actionable insights [4] - By combining AI automation with human expertise, Ad2 AI Agent aims to redefine advertising strategies, with a launch planned for March 2025 [5] Company Overview - TNL Mediagene, a Cayman Islands-registered company, was formed from the merger of Taiwan's The News Lens Co. and Japan's Mediagene Inc. in May 2023, focusing on digital media and AI-powered advertising [6]

Financial Data and Key Metrics Changes - For 2024, the company delivered $929 million of adjusted EBITDA, with a fourth-quarter adjusted EBITDA of $252 million, reflecting a 5% increase [6][22] - Adjusted diluted earnings per share for the full year was $5.75, with a fourth-quarter adjusted EPS of $1.72 [22] - The full-year adjusted EBITDA margin was 24%, indicating strong performance despite headwinds from higher interest rates and variable compensation [22] Business Line Data and Key Metrics Changes - The Vacation Ownership segment reported revenue of $813 million in Q4, with adjusted EBITDA increasing 7% to $222 million [23] - The Travel and Membership segment generated $157 million in revenue for Q4, slightly down from $158 million in the prior year, with adjusted EBITDA flat at $52 million [25] - The company achieved 175,000 tours in Q4, a 2% growth, while the VPG was $3,284, exceeding expectations [24] Market Data and Key Metrics Changes - The company experienced a 7% growth in enterprise-wide gross vacation ownership sales for 2024, driven by an 8% growth in tours [9] - New owner transactions increased to 35% in 2024, a 185 basis point increase from 2023, with expectations to maintain this range in 2025 [10] Company Strategy and Development Direction - The company plans to continue executing its core timeshare and travel membership business plans, targeting mid-single-digit adjusted EBITDA growth and significant adjusted free cash flow [19] - The company is focused on capitalizing on the successes of the Acor Vacation Club and launching Sports Illustrated sales in 2025 [20][19] - Partnerships with Allegiant Airlines and Live Nation are expected to enhance cross-marketing and lead generation opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit tour growth for 2025, despite some softness in the Las Vegas market impacting Q4 [41] - The company noted strong consumer sentiment and high retention rates, with 98% of owners satisfied with their product [65] - Management anticipates a stable interest rate environment, with a slight headwind expected for 2025 [80] Other Important Information - The company repurchased 7% of outstanding shares and paid a $2.00 per share dividend for the year, totaling $377 million returned to shareholders [18][26] - Adjusted free cash flow for the year was $446 million, with a net corporate leverage ratio of 3.3 times [28][29] Q&A Session Summary Question: What drove the difference in VPG and tours? - Management noted that while VPG was strong due to a favorable mix, tours were slightly below expectations due to adjustments in marketing channels [37][44] Question: Any changes in financing trends? - Management indicated no significant changes in consumer financing trends, with a consistent quality of consumers reflected in high average FICO scores [50] Question: Perspectives on consumer strength? - Management highlighted strong consumer sentiment, consistent volume per guest, and a high retention rate as indicators of consumer strength [62][65] Question: Loan loss provision guidance? - The company aims for a long-term provision range of 18% to 19%, with current guidance at 20% for 2025 [72] Question: Interest rate environment impact? - Management expects a minor impact from interest rates in 2025, potentially closer to flat rather than a tailwind [80] Question: Updates on Sports Illustrated? - Management confirmed plans to announce several locations for Sports Illustrated this year, with sales expected to begin in 2025 [89][98] Question: Owner growth expectations? - Minimal owner growth was reported for 2024, primarily from the Acor Vacation Club acquisition, with a focus on replacing exiting owners with new ones [102][104]

Share Repurchase and Stockholder Equity - The Board has authorized a total of $7.0 billion for the Share Repurchase Program, with the latest increase of $500 million in May 2024[185]. - The company repurchased common stock totaling $235 million in 2024, compared to $307 million in 2023, showing a reduction of about 23.4%[331]. - The company has $441 million remaining in its share repurchase program as of December 31, 2024, with a total authorization of $7.0 billion[388]. - The company’s total stockholders' equity decreased from $4,279 million in 2023 to $4,328 million in 2024, representing a decline of approximately 1.2%[331]. Financial Performance - Net revenues for 2024 reached $3,864 million, an increase of 3% from $3,750 million in 2023[322]. - Operating income for 2024 was $733 million, reflecting a slight increase from $720 million in 2023[322]. - Net income attributable to shareholders was $411 million in 2024, compared to $396 million in 2023, marking a 3.8% increase[324]. - Basic earnings per share from continuing operations increased to $5.39 in 2024, compared to $5.24 in 2023[322]. - Basic earnings per share for 2024 were $5.87, an increase from $5.31 in 2023, reflecting improved profitability[387]. Debt and Liabilities - As of December 31, 2024, the company reported a total liabilities figure of $7,615 million, down from $7,655 million in 2023[327]. - The company’s total liabilities increased from $7,196 million in 2023 to $7,433 million in 2024, marking an increase of approximately 3.3%[331]. - Total debt increased to $3,468 million as of December 31, 2024, up from $3,575 million in 2023, with term notes at $1,746 million[437]. - The Company had $2.39 billion of outstanding secured notes issued prior to December 31, 2023, with interest payable semi-annually[455]. Cash and Cash Equivalents - Cash and cash equivalents decreased to $167 million in 2024 from $282 million in 2023[327]. - The total balance of cash and cash equivalents as of December 31, 2024, was $67.1 million, down from $71.4 million in 2023, indicating a decrease of about 4.3%[331]. Revenue Recognition and Management - The Company recognizes revenues from membership dues on a straight-line basis over the membership period[375]. - The Company recognizes deferred tax assets and liabilities based on temporary differences using currently enacted tax rates[354]. - The Company recorded capitalized interest of $1 million in 2024, less than $1 million in 2023, and $1 million in 2022[352]. Market Risks and Hedging - The company does not engage in trading or speculative activities in the derivatives markets, focusing instead on managing interest rate and foreign currency risks[300]. - The fair value of outstanding foreign exchange hedging instruments was $72 million as of December 31, 2024, with a 10% change in foreign currency exchange rates potentially impacting fair value by approximately $6 million[302]. - The company anticipates that SOFR and asset-backed commercial paper rates will remain primary market risk exposures going forward[302]. Acquisitions and Investments - The acquisition of Accor Vacation Club for $50 million on March 1, 2024, expands the company's portfolio and enhances its presence in the Asia Pacific region[391]. - The Company acquired Playbook365 for $13 million, consisting of $6 million in cash and contingent consideration valued at $7 million, potentially increasing to $24 million based on performance metrics[393]. - The Company acquired the Travel + Leisure brand for $100 million, with payments structured over several years, aimed at expanding travel services and membership offerings[397]. - The acquisition of Alliance Reservations Network was completed for $102 million, enhancing the Company's travel booking technology solutions[398]. Tax and Compliance - The income tax provision for 2024 was $135 million, with a pre-tax income of $513 million from domestic and foreign operations[409]. - The effective income tax rate for 2024 was 26.4%, differing from the federal statutory rate due to various factors including state taxes and foreign operations[412]. - The unrecognized tax benefits as of December 31, 2024, amounted to $22 million, unchanged from 2023, with a gross amount of $17 million that could affect the effective tax rate if recognized[413]. Vacation Ownership and Sales - Vacation ownership interest sales increased to $1,721 million in 2024, up 8.8% from $1,582 million in 2023[322]. - Vacation Ownership segment revenues reached $3,171 million in 2024, up from $3,041 million in 2023, driven by a 9% increase in vacation ownership interest sales to $1,721 million[386]. - The company’s vacation ownership contract receivables (VOCRs) increased to $3.233 billion in 2024 from $3.101 billion in 2023, with net VOCR originations of $1.53 billion in 2024[418][420]. Credit Risk Management - The provision for loan losses was $432 million in 2024, up from $348 million in 2023, indicating a focus on managing credit risk[329]. - The allowance for loan losses on VOCRs rose to $614 million in 2024 from $574 million in 2023, reflecting a provision for loan losses of $432 million in 2024[421]. - The company’s vacation ownership contract receivables are assessed using a static pool analysis to project future expected losses, indicating a proactive approach to managing credit risk[347]. Operational Metrics - Total property management fees and reimbursable revenues reached $845 million in 2024, compared to $814 million in 2023 and $763 million in 2022[374]. - The Company completed its annual goodwill impairment test and determined that no impairment exists as of October 1, 2024[361]. - The Company performed annual goodwill impairment tests and found no impairments, with total goodwill increasing to $966 million as of December 31, 2024[405].

Core Insights - Travel + Leisure Co. (TNL) reported revenue of $971 million for the quarter ended December 2024, reflecting a year-over-year increase of 3.9% [1] - The earnings per share (EPS) for the quarter was $1.72, down from $1.98 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $963.61 million by 0.77%, while the EPS also surpassed the consensus estimate of $1.71 by 0.58% [1] Financial Performance Metrics - Vacation Ownership - Tours: Actual sales were 175,000, below the estimated 190,060 [4] - Vacation Ownership - Gross VOI sales reached $591 million, exceeding the average estimate of $580.22 million [4] - Vacation Ownership - Volume Per Guest (VPG) was $3,284, significantly higher than the estimated $2,973.30 [4] - Net Revenues from Travel and Membership totaled $157 million, slightly above the estimate of $153.61 million, but a decrease of 0.6% compared to the previous year [4] - Net Revenues from Vacation Ownership were $813 million, surpassing the estimate of $811.89 million, marking a 4.8% increase year-over-year [4] - Net Revenues from Corporate and other segments reported $1 million, compared to an estimated -$1 million [4] - Adjusted EBITDA for Travel and Membership was $52 million, exceeding the estimate of $48.16 million [4] - Adjusted EBITDA for Vacation Ownership was $222 million, slightly below the average estimate of $223.50 million [4] - Adjusted EBITDA for Corporate and Other was -$22 million, in line with the estimate [4] Stock Performance - Shares of Travel + Leisure Co. have increased by 7.6% over the past month, outperforming the Zacks S&P 500 composite, which rose by 4.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Viewpoint - Travel + Leisure Co. (TNL) reported quarterly earnings of $1.72 per share, exceeding the Zacks Consensus Estimate of $1.71 per share, but down from $1.98 per share a year ago, indicating a 13.1% year-over-year decline [1] - The company achieved revenues of $971 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.77% and showing a year-over-year increase from $935 million [2] Financial Performance - The earnings surprise for the recent quarter was 0.58%, and the company has surpassed consensus EPS estimates in all four of the last quarters [1][2] - Travel Leisure Co. has also topped consensus revenue estimates three times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $1.12, with expected revenues of $943.54 million, and for the current fiscal year, the EPS estimate is $6.52 on revenues of $4.03 billion [7] Stock Performance - Travel Leisure Co. shares have increased approximately 11.8% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Leisure and Recreation Services industry is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for Q4 2024 was $119 million with a diluted EPS of $1.72 on net revenue of $971 million[4] - Full-year 2024 net income reached $411 million with a diluted EPS of $5.82 on net revenue of $3.9 billion[4] - Adjusted EBITDA for Q4 2024 was $252 million, while full-year 2024 Adjusted EBITDA totaled $929 million[4] - Net income attributable to TNL shareholders for the twelve months ended December 31, 2024, was $411 million, a 4% increase from $396 million in 2023[34] - Operating income for the twelve months ended December 31, 2024, was $733 million, compared to $720 million in 2023[29] - Basic earnings per share from continuing operations for the twelve months ended December 31, 2024, increased to $5.39 from $5.24 in 2023[34] - Adjusted net income for Q4 2024 was $119 million, down from $144 million in Q4 2023[42] Revenue and Sales - Vacation Ownership revenue increased by 5% to $813 million in Q4 2024, with a 10% rise in gross VOI sales[6] - Net revenues for the three months ended December 31, 2024, increased by 4% to $971 million compared to $935 million in the same period of 2023[29] - Vacation Ownership segment net revenues increased by 5% to $813 million for the three months ended December 31, 2024, compared to $776 million in 2023[34] - Total Vacation Ownership revenue increased by 5% to $813 million in Q4 2024, compared to $776 million in Q4 2023[39] - Gross VOI sales for the twelve months ended December 31, 2024, were $2,293 million, a 7% increase from $2,149 million in 2023[39] - Gross VOI sales for 2025 are projected to be between $2.4 billion and $2.5 billion[18] Cash Flow and Capital Management - Cash flow from operating activities for full-year 2024 was $464 million, up from $350 million in the prior year[14] - The company reported a net cash provided by operating activities of $464 million for the twelve months ended December 31, 2024, compared to $350 million in 2023[33] - Free cash flow for the twelve months ended December 31, 2024, was $446 million, up from $379 million in 2023[47] - The company repurchased $70 million of common stock in Q4 2024 and $235 million for the full year[4] Debt and Leverage - The company had $3.5 billion in corporate debt and a leverage ratio of 3.3x as of December 31, 2024[11] - Total liabilities decreased to $7,615 million as of December 31, 2024, from $7,655 million in 2023[31] Dividends - A first quarter 2025 dividend of $0.56 per share is recommended for approval by the Board of Directors[4] Other Metrics - Adjusted EBITDA for the three months ended December 31, 2024, rose by 5% to $252 million, compared to $240 million in the same period of 2023[34] - Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenue, assisting investors in evaluating operating performance[52] - Adjusted Free Cash Flow is calculated as net cash from operating activities minus capital expenditures, indicating the ability to generate cash for growth and shareholder returns[53] - Adjusted Free Cash Flow Conversion measures Adjusted free cash flow as a percentage of Adjusted EBITDA, helping assess the quality of earnings and cash flow generation[54] - Adjusted Net Income excludes certain costs and adjustments, providing insight into ongoing operating performance[55] - Average Number of Exchange Members reflects the average number of paid members in vacation exchange programs during the reporting period[56] - Volume Per Guest (VPG) measures Gross VOI sales per tour, enhancing understanding of sales efficiency in the Vacation Ownership business[62] - Loan loss provision increased by 27% to $117 million in Q4 2024, compared to $92 million in Q4 2023[39] - The average number of exchange members decreased by 4% to 3,377 thousand in Q4 2024, compared to 3,524 thousand in Q4 2023[39] - Total assets as of December 31, 2024, were $6,735 million, slightly down from $6,738 million as of December 31, 2023[31] - Cash and cash equivalents decreased to $167 million as of December 31, 2024, from $282 million in 2023[33]

Core Viewpoint - Travel + Leisure Co. (TNL) is set to report its fourth-quarter results on February 19, 2024, with expectations of a decline in earnings per share (EPS) compared to the previous year, despite projected revenue growth [1][2]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for TNL's fourth-quarter adjusted earnings is $1.71 per share, reflecting a 13.6% decline from the prior year's earnings of $1.98 per share [2]. - The consensus estimate for net revenues is $963.6 million, indicating a 3.1% growth from the year-ago quarter [2]. Group 2: Factors Influencing Performance - TNL's top line is expected to improve year over year due to increased tours and growth in new owner tours, supported by strong volume per guest (VPG) [3]. - The company benefits from robust engagement from existing owners and strategic partnerships aimed at capturing a larger share of the vacation market [3]. Group 3: Challenges and Concerns - There is concern regarding the decline in travel membership revenues, which fell by 3% in the third quarter of 2024, highlighting challenges in adapting to industry changes and customer preferences [4]. - High costs are anticipated to negatively impact the company's bottom line [4]. Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for TNL, as it has an Earnings ESP of -10.53% and a Zacks Rank of 3 (Hold) [5].

Company Performance - Travel + Leisure Co. (TNL) shares have increased by 12.8% over the past month, reaching a new 52-week high of $57.62 [1] - The company has gained 11.7% since the beginning of the year, outperforming the Zacks Consumer Discretionary sector's 2.7% and the Zacks Leisure and Recreation Services industry's 5.4% [1] Earnings and Revenue Expectations - In the last earnings report on October 23, 2024, TNL reported an EPS of $1.57, exceeding the consensus estimate of $1.49 [2] - For the current fiscal year, TNL is expected to post earnings of $6.52 per share on revenues of $3.86 billion, with a year-over-year change of 13.47% [3] - For the next fiscal year, the company is projected to earn $8.48 per share on revenues of $4.03 billion, representing a year-over-year change of 4.41% [3] Valuation Metrics - TNL currently trades at 8.6X current fiscal year EPS estimates, below the peer industry average of 19.9X [7] - On a trailing cash flow basis, TNL trades at 7.6X compared to the peer group's average of 12.1X [7] - The stock has a PEG ratio of 0.65, indicating it is not in the top echelon of stocks from a value perspective [7] Zacks Rank and Style Scores - TNL has a Zacks Rank of 2 (Buy) due to rising earnings estimates, making it a suitable choice for investors [8] - The company has a Value Score of A, while its Growth and Momentum Scores are D and D, respectively, resulting in a VGM Score of B [6] Industry Comparison - The Leisure and Recreation Services industry is in the top 32% of all industries, indicating favorable conditions for TNL and its peers [11] - Royal Caribbean Cruises Ltd. (RCL), a peer, has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, with a projected EPS of $14.74 on revenues of $17.98 billion for the current fiscal year [9][10]

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