The revenue from contract sales are interesting if it is used to fund new development/acquisition. The flip side is the more success they have the more contention it creates for usage since the total point base is fixed.
The more interesting number for me is the resort management revenue because bottom line, this is what each and everyone of us pay within our MF now and as for as long as we own our timeshare.
Resort management and other services revenues totaled $74.1 million, a $0.8 million decrease from the second quarter of 2014. Resort management and other services revenues, net of expenses, were $28.6 million, a $2.1 million, or 8 percent, increase over the second quarter of 2014.
Normally revenue - cost is called profit. Since they are not manufacturing anything, I have to assume that expenses is cost in this case. If this is the case, they have a 38.5% mark up (28.6/74.10). This is a very healthy business in its own right and the margins seem high for the services industry. This is an annuity forever.
Personally, I am more concerned on the health of the resort management side since this is what gives our timeshare its value. Glad to see it is healthy.
