May 10, 2012
ATLANTA, May 10, 2012 /PRNewswire/ -- Travelport Limited, a leading provider of critical transaction processing for the global travel industry, today announces its financial results for the first quarter ended March 31, 2012.
Commenting on developments, Gordon Wilson, President and CEO of Travelport, said:
"This quarter has seen significant enhancements in our geographical position in the key growth regions of Asia and Africa, as we continue to execute on our strategy. Travelport announced a major partnership with AXESS, the GDS owned by Japan Airlines, which will run on Travelport technology by late 2013, as well as the vertical integration of our franchise in Southern Africa. Financial performance was solid and in line with our expectations, and we successfully restructured our near term debt."
Operational Highlights:
• Agreed significant new hosting partnership with Japan's leading GDS
• Expanded agreement with China's TravelSky
• Acquired Southern Africa franchise and commenced vertical integration
• Successfully refinanced 2013 term loans
Financial Highlights for First Quarter 2012($ in millions)
|
Q1 2012 |
Q1 2011 |
Change |
Change (%) |
|
|
Net Revenue |
$550 |
$531 |
$19 |
4% |
|
Operating Income |
$66 |
$79 |
$(13) |
(16)% |
|
EBITDA |
$123 |
$135 |
$(12) |
(9)% |
|
Adjusted EBITDA |
$140 |
$147 |
$(7) |
(5)% |
|
Cash generated by operating activities |
$29 |
$61 |
$(32) |
(52)% |
Travelport's Net Revenue of $550 million for the first quarter of 2012 was $19 million (4%) higher than the first quarter of 2011 as a result of a 4% increase in transaction processing revenue after a 2% increase in segment volumes. Operating Income and EBITDA were $66 million and $123 million, respectively, for the first quarter of 2012, representing a decrease of 16% in Operating Income and a decrease of 9% in EBITDA compared to 2011. Adjusted EBITDA was $140 million for the first quarter of 2012, a 5% decrease compared to 2011.
Interest costs of $67 million were $10 million lower for 2012 due to a lower effective interest rate, including the impact of interest rate hedges, and a lower net debt balance.
Travelport generated $29 million in net cash from operating activities of continuing operations, a $32 million decrease from 2011, due to a $20 million payment under the 2011 employee incentive plan in March 2012 and fluctuations in our collections and payments cycles.
Travelport's net debt was $3,169 million as of March 31, 2012, which comprised debt of $3,415 million less $109 million in cash and cash equivalents and less $137 million of cash held as collateral.
On May 8, 2012, Travelport successfully completed the refinancing of approximately $162 million of non-extended term loans due in 2013 through the issuance of new term loans due in 2015. In addition, Travelport extended the maturity of approximately $61 million of its revolving credit facility to May 2015.
