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Travelport Second Quarter 2010 Results

08/06/2010| 9:15:46 AM| 中文

Travelport's Net Revenue of $598 million and Operating Income of $95 million for the second quarter of 2010 represented a 1% increase and a 17% decrease, respectively, compared to the corresponding period in the prior year.

NEW YORK, Aug. 5 /PRNewswire/ -- Travelport Limited, a leading provider of critical transaction processing for the global travel industry, today announced its financial results for the second quarter ended June 30, 2010. 

Second Quarter 2010 Summary:

Net Revenue of $598 million, a 1% increase over second quarter 2009
 
Operating Income of $95 million, a 17% decrease over second quarter 2009
 
Adjusted EBITDA of $176 million, a 2% decrease over second quarter 2009

First Half 2010 Summary:

Net Revenue of $1,179 million, a 3% increase over first half 2009
 
Operating Income of $155 million, a 10% decrease over first half 2009
 
Adjusted EBITDA of $315 million, remaining flat as compared with first half 2009
 
Cash generated by operations of $204 million, a 52% increase over first half 2009

Commenting on developments, Jeff Clarke, CEO and president of Travelport, said:"Travelport's first half performance was in line with management's expectations.  I'm particularly pleased with the Company's strong cash flow growth during the period. 

"During the quarter, our GDS business increased its year-on-year segment volumes by 5% due to the rebound in corporate travel and strong growth in the Asia Pacific region. We advanced a number of key product developments, including the roll-out of a new version of Travelport e-Pricing and Travelport Universal Desktop.  We are also completing the migration of two major GDS contracts, with Thomas Cook, in the UK, and Carlson Wagonlit, in India, and we have further enhanced our geographic footprint through a strategic partnership with Sirena-Travel, Russia's leading domestic GDS.

"GTA had a terrific quarter with 20% growth in room nights and 24% growth in Segment Adjusted EBITDA on a constant currency basis."

Q2 2010: Travelport's Net Revenue of $598 million and Operating Income of $95 million for the second quarter of 2010 represented a 1% increase and a 17% decrease, respectively, compared to the corresponding period in the prior year.  The reduction in Operating Income is primarily due to a $15 million unfavorable movement in the fair value of foreign exchange derivatives and a non-recurring $5 million gain on asset sales in 2009.  Travelport achieved Adjusted EBITDA of $176 million for the three months ended June 30, 2010, representing a decrease of 2% compared to the prior year.   

H1 2010: Travelport's Net Revenue of $1,179 million and Operating Income of $155 million for the first half of 2010 represented a 3% increase and a 10% decrease, respectively, compared to the corresponding period in the prior year.  The reduction in Operating Income is primarily a result of a $17 million unfavorable movement in the fair value of foreign exchange derivatives.  In addition, during the first half of 2010, we incurred approximately $15 million of incremental corporate transaction costs, which were offset by realized cost savings.  Travelport achieved Adjusted EBITDA of $315 million for the first half of 2010, remaining flat compared to the prior year. 

Financial Highlights Second Quarter and First Half 2010

Global Distribution Systems (GDS)

Travelport's main business is its global distribution system (GDS), which includes the Worldspan and Galileo brands and also the Company's Airline IT Solutions business, which hosts mission critical applications and provides business and data analysis solutions for major airlines.
 
Q2 2010: Net Revenue and Segment EBITDA for the GDS business were $520 million and $160 million, respectively, for the second quarter of 2010, representing a 1% increase in Net Revenue and a decrease of 4% in Segment EBITDA compared to the second quarter of 2009. Segment Adjusted EBITDA for the GDS business was $164 million for the second quarter of 2010, a 5% reduction as compared to the second quarter of 2009.  Increased Net Revenue resulted from a 5% increase in segments as compared to the second quarter of 2009 and an 11% decrease in Airline IT Solutions revenue associated with the merger of Delta and Northwest. Excluding a one-time $8 million gain realized in 2009 from a commercial legal settlement, our second quarter 2010 operating costs were $7 million lower, due primarily to a reduction in wages and benefits as a result of effective cost management.

H1 2010: Net Revenue and Segment EBITDA for the GDS business were $1,056 million and $311 million, respectively, for the first half of 2010, representing a 3% increase in Net Revenue and a decrease of 3% in Segment EBITDA compared to the first half of 2009.  Segment Adjusted EBITDA for the GDS business was $317 million for the first half of 2010, a 5% reduction as compared to the first half of 2009.  Increased Net Revenue resulted from a 5% increase in segments as compared to the first half of 2009, a 1% increase in average revenue per segment and a 10% decrease in Airline IT Solutions revenue associated with the merger of Delta and Northwest. 

Gullivers Travel Associates (GTA)

GTA is a leading global, multi-channel provider of hotel and ground services.
 
Q2 2010: Net Revenue and Segment EBITDA for the GTA business were $78 million and $23 million, respectively, for the second quarter of 2010.  Segment Adjusted EBITDA for GTA in the second quarter of 2010 was $23 million, representing a $1 million improvement compared to the second quarter of 2009.  Total Transaction Value ("TTV") increased 18% in the quarter primarily due to a 20% growth in the number of room nights and unfavorable exchange rate movements.  Net Revenue increased 1% in the quarter due to the increase in TTV, offset by lower margin on sales. 

H1 2010: Net Revenue and Segment EBITDA for the GTA business were $123 million and $21 million, respectively, for the first half of 2010.  Segment Adjusted EBITDA for GTA in the first half of 2010 was $20 million, representing an $8 million improvement compared to the first half of 2009.  Total Transaction Value ("TTV") increased 19% in the six months primarily due to a 16% growth in the number of room nights and favorable exchange rate movements.  Net Revenue increased 3% in the six months due to the increase in TTV, partially offset by lower margin on sales. 

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 second quarter and first half of 2010, Travelport recorded $5 million and $2 million, respectively, in earnings from our investment in Orbitz Worldwide.

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.
Travelport also owns approximately 48% of Orbitz Worldwide (NYSE: OWW), a leading global online travel company.

Travelport operates in 160 countries, reported 2009 revenues of $2.2 billion and has approximately 5,400 employees.  Travelport is a private company owned by The Blackstone Group, One Equity Partners, Technology Crossover Ventures, and Travelport management.

TAGS: Travelport | GTA
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