Playa Hotels Resorts NV Reports Earnings for Q2 2024
Intellectia.AI Updated: 2024-08-08
Playa Hotels & Resorts N.V. Reports Earnings for Q2 2024
Playa Hotels & Resorts N.V. (PLYA) has announced its financial results for the quarter ending June 30, 2024.
Key Financial Metrics:
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | YoY Change | QoQ Change | Consensus Estimates for Q2 2024 |
|---|---|---|---|---|---|---|
| Total Revenue | $235.5 million | $300.6 million | $248.0 million | -5.1% | -21.7% | $228.6 million |
| Earnings Per Share (EPS) | $0.1 | $0.46 | $0.18 | -44.4% | -78.3% | $0.1 |
Interpretation:
Playa Hotels & Resorts saw a slight dip in total revenue in Q2 2024, down by 5.1% compared to Q2 2023. The revenue also saw a significant quarter-over-quarter drop of 21.7%, landing at $235.5 million, which, however, surpassed the consensus estimate of $228.6 million. The EPS met the Wall Street consensus of $0.1, falling significantly from the previous quarter’s EPS of $0.46.
Segment Revenue Performance:
| Segment | Q2 2024 Revenue ($M) | Q2 2023 Revenue ($M) | YoY Change |
|---|---|---|---|
| Yucatán Peninsula | $78.6 | $76.4 | +2.9% |
| Pacific Coast | $34.4 | $37.6 | -8.5% |
| Dominican Republic | $65.7 | $60.6 | +8.4% |
| Jamaica | $46.8 | $57.7 | -19.0% |
Interpretation:
Playa’s Yucatán Peninsula and Dominican Republic segments saw growth in revenue, with year-over-year increases of 2.9% and 8.4%, respectively. However, there were notable declines in the Pacific Coast and Jamaica segments, which experienced decreases in revenue of 8.5% and 19.0%, respectively. The revenue drop in Jamaica was attributed to reduced demand following a US travel advisory issued in January 2024.
Comments from Company’s Officers:
Management noted that the quarter's results were impacted by the reduced demand following the US travel advisory for Jamaica and ongoing renovation projects at two resorts. They remain optimistic about the performance in the latter part of the year as renovations complete.
Share Repurchase Program:
During Q2 2024, Playa repurchased 4,079,947 of its ordinary shares at an average price of $8.99 per share, excluding taxes. The company had approximately $127.2 million remaining under its $200 million share repurchase program as of June 30, 2024.
Forward Guidance:
The company did not provide any forward guidance in this earnings release.
Stock Price Movement:
Post-earnings release, Playa Hotels & Resorts N.V. stock experienced a slight decline of 1.6%.
This article summarizes the key financials of Playa Hotels & Resorts N.V. for Q2 2024, highlighting both segment performance and management’s insights, for a comprehensive view of the company’s position.
