OneSpaWorld(US:OSW)2026-01-12 20:02Financial Data and Key Metrics Changes - The company pre-announced preliminary fourth quarter results with a slight downtick in revenue guidance, attributed to weaker performance in November, but December rebounded strongly, leading to a positive outlook for the fourth quarter and 2026 [4][3] - Retail spend increased significantly during the holiday season, with penetration around 11%, marking the best New Year cruises on record [4] Business Line Data and Key Metrics Changes - The company is reorganizing its operations, exiting the Asia land-based operation, which will impact revenue but not EBITDA, as it was not profitable [6][8] - In Europe, the company will now recognize management fees instead of revenue from certain cruise lines, maintaining EBITDA levels while simplifying operations [7] Market Data and Key Metrics Changes - The company noted a strong consumer appetite for wellness services, particularly in acupuncture and med spa offerings, which currently represent about 8% of total revenue and are growing at 10% annually [9][10] - Guest spend is at an all-time high, with December and New Year cruises performing exceptionally well [12] Company Strategy and Development Direction - The company is focusing on enhancing its wellness offerings and exploring new services related to longevity, which is seen as a significant growth area [10] - There is an emphasis on improving pre-booking capabilities, which currently stands at around 22%, with a goal to increase this to 30% [18][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining pricing power across various macro environments, noting that consumer spending has remained strong despite economic uncertainties [14][15] - The company is optimistic about the impact of tax breaks on consumer spending and overall business performance [15] Other Important Information - The company returned $92.9 million to shareholders in 2025 through share repurchases and dividends while also investing in debt reduction [38] - Staff retention has improved significantly, with a focus on bringing back experienced staff, which enhances productivity and reduces training costs [31][32] Q&A Session Summary Question: Can you provide insights on the preliminary fourth quarter results? - Management noted a slight revenue guide downtick due to November's performance but highlighted a strong December recovery [4] Question: What are the implications of exiting the Asia land-based operation? - The exit will not impact EBITDA as the operation was not profitable, but it will affect revenue numbers [6] Question: How is the company addressing the growth in guest spend? - The company has revamped service offerings to encourage longer and higher-priced treatments, which has successfully driven guest spend [11] Question: What is the company's strategy regarding pre-booking? - Management emphasized the importance of improving pre-booking capabilities, which significantly enhance guest spending [18][22] Question: How does the company view its relationships with cruise line partners today? - The focus has shifted to collaborative growth with cruise line partners, moving away from past practices of aggressive cost-cutting [40][42]