Travelport Delivering First Quarter 2013 Results
ATLANTA, May 9, 2013 /PRNewswire/ -- Travelport Limited, a leading provider of critical transaction processing and data for the global travel industry, announces its financial results for the first quarter ended March 31, 2013.
ATLANTA, May 9, 2013 /PRNewswire/ -- Travelport Limited, a leading provider of critical transaction processing and data for the global travel industry, today announces its financial results for the first quarter ended March 31, 2013.
Commenting on the Company's performance, Gordon Wilson, President and CEO of Travelport, said:
"We are today reporting an increase in underlying revenue, a growth in underlying Adjusted EBITDA, and a significantly strengthened Travelport group balance sheet following April's successful refinancing. We continue to deliver on our growth strategy and the successful development of our business with increased hospitality, payment processing and services revenue, as evidenced by the leap in RevPas for the period, which exceeded our expectations. We look forward to the future with growing confidence."
• Increased RevPas by 6%, including 20% growth in hospitality, payment processing and services revenue
• Launched ground-breaking airline merchandising platform (April 2013)
• Signed watershed airline agreements (full content, merchandising & low cost)
• Extended hotel room offers to more than one million (May 2013)
• Expanded operations in targeted growth regions of Africa and Russia
• Successfully completed refinancing (April 2013)
The loss of the Master Services Agreement ("MSA") with United Airlines contributed approximately $25 million to the decline in net revenue and $19 million to the decline in each of operating income, EBITDA and Adjusted EBITDA for the first quarter of 2013 compared to 2012. Excluding the impact of this loss, net revenue increased by $23 million, operating income increased by $22 million, EBITDA increased by $17 million and Adjusted EBITDA increased by $6 million, compared to 2012.
Travelport RevPas increased 6% to $5.38 for the first quarter of 2013, and the average rate of agency commissions increased 3%.
Interest costs of $70 million for the three months ended March 31, 2013 were $3 million higher due to higher effective interest rates.
Travelport used $21 million in net cash from operating activities for the three months ended March 31, 2013 compared to $29 million of cash provided by operating activities for the three months ended March 31, 2012.
Travelport's net debt was $3,219 million as of March 31, 2013, which comprised debt of $3,464 million less $108 million in cash and cash equivalents and less $137 million of cash held as collateral.
In April 2013, the Company completed its previously announced comprehensive refinancing, including the exchange and cancellation of approximately $500 million of PIK debt of Travelport Holdings Limited, our direct parent company.