(RTTNews) - Hotels operator Wyndham Worldwide Corp. (WYN: News ) Wednesday reported a decline in profit for the third quarter, hurt by lower revenues across all business segments. On an adjusted basis, earnings per share came in above of the company's expectation as well as analysts' estimate. Wyndham also provided an earnings outlook for the fourth quarter and updated the full-year revenue view.

For the third quarter, net income declined to $104 million or $0.57 per share from $142 million or $0.80 per share in the previous year.

On an adjusted basis, net income was $106 million or $0.58 per share compared to $148 million or $0.83 per share in the earlier year. For the quarter, the company was expecting earnings in the range of $0.53 to $0.57 per share.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.56 per share. Analysts' estimates typically exclude special items.

The Parsippany, New Jersey-based company's net revenues for the quarter declined 17% to $1.02 billion from $1.23 billion a year ago. Analysts expected a revenue of $1.00 billion for the third quarter. The company attributed the decline to the previously announced initiative to reduce the deployment of capital in its vacation ownership business, continued weakness in the global lodging industry, and unfavorable foreign exchange rate movements which negatively impacted its exchange and rentals business.

Service fees and membership revenues declined to $445 million from $468 million last year. Vacation ownership interest sales were $285 million, down from $446 million in the previous year. Franchise fees decreased to $126 million from $153 million and consumer financing revenues declined to $108 million from $111 million a year ago. Other revenues rose to $52 million from $48 million in the year ago quarter.
By segments, Wyndham Hotel Group revenues declined 14% to $183 million due to a decline in worldwide RevPAR. Revenue from Wyndham Exchange and Rentals were $327 million, an 8% decrease from the previous year due to unfavorable foreign currency movements. Revenue from Wyndham Vacation Ownership declined 23% to $508 million from the previous year, primarily reflecting the planned reduction in tour flow.

Total expenses for the quarter were $810 million, compared to $984 million last year.

Interest expense rose to $34 million from $21 million, while interest income declined to $1 million from $2 million a year ago.

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