Aug 8, 2012
ATLANTA, Aug. 8, 2012 /PRNewswire/ -- Travelport Limited, a leading provider of critical transaction processing for the global travel industry, today announces its financial results for the second quarter ended June 30, 2012.
Commenting on developments, Gordon Wilson, President and CEO of Travelport, said:
"I am pleased to announce continued growth in Revenue Per Segment driven by our enhanced content and product offering and demonstrating the strength in our underlying business model. Our first half performance is in line with management expectations despite the continued macroeconomic uncertainty which resulted in softer Q2 year on year segment volume as compared to Q1 across both the USA and Europe, the largest travel geographies."
Operational Highlights:
Continued growth in Transaction Processing Revenue per Average Segment ("RevPas") and flat Q2 year on year Adjusted EBITDA, excluding the impact of the loss of the United Airlines Master Services Agreement
Trebled hotel content since 2011 with over 340,000 properties and 700,000 hotel offers now on offer
Secured multiple content distribution and merchandising agreements with both network airlines and low cost carriers
Launched new innovative mobile technology globally
Expanded Point of Sale technology with Travelport Universal Desktop customers now in every region
Operating cash flow for the six months ended June 30, 2012 was $128 million, an increase of $30 million over the same period in 2011
Financial Highlights for Second Quarter 2012
($ in millions)
|
Q2 2012 |
Q2 2011 |
Change |
% Change |
|
|
Net Revenue |
$506 |
$530 |
$(24) |
(5)% |
|
Operating Income |
$63 |
$66 |
$(3) |
(5)% |
|
EBITDA |
$119 |
$123 |
$(4) |
(3)% |
|
Adjusted EBITDA |
$120 |
$136 |
$(16) |
(12)% |
The loss of the Master Services Agreement with United Airlines contributed approximately $22 million to the decline in net revenue and $16 million to the decline in each of operating income, EBITDA and Adjusted EBITDA for Q2 2012 compared to 2011. Excluding the impact of this loss, net revenue for Q2 2012 declined $2 million from Q2 2011, while Operating Income and EBITDA increased by $13 million and $12 million, respectively, compared to 2011, and Adjusted EBITDA remained flat. RevPas increased 2% to $5.34, and average rate of agency commissions increased 1%.
Financial Highlights for YTD 2012
|
YTD 2012 |
YTD 2011 |
Change |
% Change |
|
|
Net Revenue |
$1,056 |
$1,061 |
$(5) |
-% |
|
Operating Income |
$129 |
$145 |
$(16) |
(11)% |
|
EBITDA |
$242 |
$258 |
$(16) |
(6)% |
|
Adjusted EBITDA |
$260 |
$283 |
$(23) |
(8)% |
|
Cash generated by operating activities |
$128 |
$98 |
$30 |
31% |
The loss of the Master Services Agreement with United Airlines contributed approximately $20 million to the decline in net revenue and $14 million to the decline in each of operating income, EBITDA and Adjusted EBITDA YTD 2012 compared to 2011. Excluding the impact of this loss, net revenue for YTD 2012 increased $15 million from YTD 2011, Operating Income and EBITDA declined by $2 million and $2 million, respectively, compared to 2011, and Adjusted EBITDA declined by $9 million. RevPas increased 2% to $5.20, and average rate of agency commissions increased 1%.
Interest costs of $144 million YTD were $5 million lower for 2012 due to a lower effective interest rate, including the impact of interest rate hedges.
Travelport generated $128 million in net cash from operating activities of continuing operations, a $30 million increase from 2011, due to a $35 million decrease in interest payments.
Travelport's net debt was $3,067 million as of June 30, 2012, which comprised debt of $3,366 million less $162 million in cash and cash equivalents and less $137 million of cash held as collateral.
