Pierre et Vacances (VAC) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2023/2024 grew nearly 5% year-over-year, with Q3 revenue down just 1.7% despite challenging market conditions.

• Adjusted EBITDA for the full year is expected to reach at least €170 million, or €160 million excluding non-recurring income, a significant increase from €137 million the previous year.

• The group demonstrated resilience amid adverse weather, unfavorable calendar effects, and pre-Olympic market disruptions, especially in France.

Financial highlights

• Q3 2023/2024 tourism revenue: €421 million (down 1.7% year-over-year); nine-month revenue: €1,188.7 million (up 4.9%).

• Accommodation revenue for nine months: €920 million, up 3.4%, driven by a 2% increase in average letting rates and 1.3% more nights sold.

• Occupancy rate for nine months rose 0.2 points to 71.1%; RevPar increased by 2.6%.

• Supplementary income up 10.3% to €268.7 million over nine months, with Q3 growth of 10.6%.

• Other revenue for nine months: €80.1 million, with Q3 at €25.4 million (down from €36.5 million in Q3 2022/2023).

Outlook and guidance

• Full-year adjusted EBITDA guidance confirmed at a minimum of €170 million (€160 million excluding non-recurring income), sharply higher than last year.

• Summer season reservations already exceed 80% of the target, with last-minute bookings showing strong momentum.

• Accommodation revenue for the summer is expected to be in line with the previous year's high base.