Home > Home > Travelport Announces Fourth Quarter and Full Year 2009 Results

Travelport Announces Fourth Quarter and Full Year 2009 Results

03/18/2010| 9:40:22 AM| 中文

Travelport Limited, the parent company of the Travelport group of companies, today announced its financial results for the fourth quarter and full year ended December 31, 2009.

NEW YORK, NY, March 17, 2010 — Travelport Limited, the parent company of the Travelport group of companies, today announced its financial results for the fourth quarter and full year ended December 31, 2009.

Fourth Quarter 2009 Summary: Net Revenue of $533 million and Operating Income of $69 million Generated $48 million in Net Cash Provided by Operating Activities. Adjusted EBITDA of $138 million.

Full Year 2009 Summary: Net Revenue of $2,248 million and Operating Loss of $(499) million Generated $239 million in Net Cash Provided by Operating Activities. Adjusted EBITDA of $632 million.

Commenting on the full year 2009 results, Travelport CEO and President, Jeff Clarke, stated: “Travelport delivered solid results in 2009 despite the difficult market environment for the travel industry. During the downturn, we increased our investment in key innovative products, including the Universal Desktop, and in core search and infrastructure capabilities. We will continue to invest heavily in these strategic areas in 2010. We’re pleased to have seen five consecutive months in travel transaction growth across our business from October 2009. Based on the market recovery and our scalable business model, we expect to grow revenues and profits for the full year 2010.”

Philip Emery, Travelport CFO, stated: “Travelport continued to show the strength and resilience of its business model in 2009, by generating $239 million in net cash provided by operating activities, as well as $436 million of unlevered free cash flow, which was up from $326 million in 2008. This positions us very well for the expected recovery in travel in 2010 and enables us to continue to invest for growth.”
Travelport Consolidated

Q4 2009: Travelport generated Net Revenue of $533 million and Operating Income of $69 million for the fourth quarter of 2009, representing a 2% and 44% increase, respectively, compared to the same period last year. Travelport achieved Adjusted EBITDA of $138 million for the three months ended December 31, 2009, representing a decrease of (7)% compared to the same period last year. Travelport generated net cash provided by operating activies of $48 million in the fourth quarter of 2009, representing an increase of $64 million compared to the same period last year.

FY 2009: For the full year 2009, Travelport generated Net Revenue of $2,248 million, representing an (11)% decrease as compared to 2008. For the full year, Travelport incurred an Operating Loss of $(499) million, including a one-time, non-cash impairment charge of $833 million. Excluding the impairment charge, Travelport generated $334 million of Operating Income during 2009, representing a 3% increase as compared to 2008. Travelport achieved Adjusted EBITDA of $632 million for the year ended December 31, 2009, representing a decrease of (12)% as compared to the prior year. Travelport generated net cash provided by operating activities of $239 million in 2009, representing an increase of $115 million compared to 2008.

Q4 2009: Net Revenue and Segment EBITDA for the GDS business were $467 million and $127 million, respectively, for the fourth quarter of 2009, representing a 2% increase in each compared to the fourth quarter of 2008. Segment Adjusted EBITDA for the GDS business was $133 million for the fourth quarter of 2009, a (2)% reduction as compared to the fourth quarter of 2008. Increased Net Revenue resulted from a 5% increase in segments and a (3)% decrease in average revenue per segment as compared to the fourth quarter of 2008. GDS direct costs, comprising agency commissions, increased $17 million, or 10%, as a result of the increase in segments and an increase in the average rate of agency commissions. Operating expenses for GDS, excluding agency commissions, decreased by $(3) million, or (2)%, compared to the fourth quarter of 2008.

FY 2009: Net Revenue and Segment EBITDA for the GDS business were $1,981 million and $602 million, respectively, for the full year 2009, representing a (9)% decrease and a 2% increase, respectively, compared to 2008. Segment Adjusted EBITDA for the GDS business was $628 million for the year 2009, a (6)% reduction compared to 2008. The reduction in Net Revenue resulted from a (9)% decrease in segments compared to 2008, with average revenue per segment remaining flat. GDS direct costs, comprising agency commissions, decreased $(77) million, or (9)%, as a result of the reduction in segments. Operating expenses for GDS, excluding agency commissions, decreased by $(72) million, or (11)%, compared to 2008 primarily as a result of the realization of cost savings and synergies.

Q4 2009: Net Revenue and Segment EBITDA for the GTA business were $66 million and $16 million, respectively, for the fourth quarter of 2009. Segment Adjusted EBITDA for GTA for the fourth quarter of 2009 was $15 million, representing a $(5) million decline compared to the fourth quarter of 2008. Global Total Transaction Value (“TTV”) increased 9% in the quarter primarily due to exchange rates that increased the effective average daily rate. Net Revenue declined (3)% in the quarter due to lower margin on sales. Direct costs decreased $(5) million during the quarter due to a decrease in transactions where GTA takes inventory risk. Operating expenses for GTA increased $8 million, or 19%, compared to the fourth quarter of 2008 driven by foreign exchange fluctuations offset by cost reductions.

FY 2009: Net Revenue and Segment EBITDA for the GTA business were $267 million and $(776) million, respectively, for the full year 2009. Segment Adjusted EBITDA for GTA for the full year of 2009 was $59 million, representing a $(51) million decline compared to 2008. Segment Adjusted EBITDA excludes the $833 million impairment charge on the GTA goodwill and intangible assets recorded during the third quarter of 2009. Global Total Transaction Value (“TTV”) decreased (16)% in the full year primarily due to a (12)% decrease in room nights and a (4)% decrease in average daily rate. Net Revenue declined (25)% for the year due to the decrease in TTV, lower margins on sales and unfavourable exchange rate movements. Direct costs decreased $(20) million during the year due to a decrease in transactions where GTA takes inventory risk. Operating expenses for GTA decreased $(18) million, or (8)%, compared to the full year 2008 primarily as a result of cost reduction actions, partially offset by an increase in bad debt expense and adverse foreign exchange fluctuations.

Orbitz Worldwide

Travelport Limited currently owns approximately 48% of the outstanding equity of Orbitz Worldwide. Travelport accounts for its investment in Orbitz Worldwide under the equity method of accounting. During the fourth quarter of 2009, Travelport recorded $9 million in losses from its investment in Orbitz Worldwide.

On January 26, 2010, Travelport purchased $50 million of newly-issued common shares of Orbitz Worldwide. After this investment, and a simultaneous agreement between Orbitz Worldwide and PAR Investment Partners to exchange approximately $49.68 million of Orbitz debt for Orbitz common shares, Travelport continues to own approximately 48% of Orbitz Worldwide’s outstanding shares.

About Travelport

Travelport is a broad-based business services company and a leading provider of critical transaction processing solutions to companies operating in the global travel industry. Travelport is comprised of the global distribution system (GDS) business that includes the Worldspan and Galileo brands; GTA, a leading global, multi-channel provider of hotel and ground services; Airline IT Solutions, which hosts mission critical applications and provides business and data analysis solutions for major airlines. With 2009 revenues of $2.2 billion, Travelport operates in 160 countries and has approximately 5,400 employees.

Travelport also owns approximately 48% of Orbitz Worldwide (NYSE: OWW), a leading global online travel company. Travelport is a private company owned by The Blackstone Group, One Equity Partners, Technology Crossover Ventures and Travelport management.

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