Orbitz Worldwide, Inc. Reports Second Quarter 2013 Results
Chicago, August 8, 2013 - Orbitz Worldwide, Inc. (NYSE: OWW) announced results for the second quarter and six months ended June 30, 2013.
• Room nights grew 20 percent in the second quarter 2013, a six percentage point acceleration from first quarter 2013.
• Revenue increased 12 percent to $225.8 million in the second quarter 2013.
• Revenue from hotels and vacation packages grew to represent 48 percent of total revenue for the trailing twelve months (TTM) ended June 30, 2013, up 395 basis points from the TTM ended June 30, 2012.
• Net income in the second quarter was $0.6 million which includes an $18.1 million write-off of deferred financing fees and other refinancing costs.
• Adjusted EBITDA grew 33 percent in the second quarter 2013 to $42.9 million.
Second Quarter 2013 Financial Results
Gross Bookings and Net Revenue
Gross bookings increased four percent year over year in the second quarter 2013. This increase was driven by higher air fares, higher average booking values per hotel and vacation package transaction, and higher hotel, vacation package, and car volumes. Lower air volume partially offset these increases.
Net revenue was $225.8 million for the second quarter 2013, up 12 percent year over year. This increase was primarily driven by higher hotel and vacation package volume and higher net revenue per air and hotel transaction. Net revenue in the second quarter 2013 also benefited from the addition of an airline servicing revenue stream for one of the company's private label
distribution partners. Lower air volume partially offset these increases.
• Standalone air net revenue was $67.5 million in the second quarter 2013, flat year over year. Lower volume was offset by higher net revenue per airline ticket and the addition of an airline servicing revenue stream.
• Standalone hotel net revenue was $78.2 million in the second quarter 2013, up 40 percent year over year. This increase was driven primarily by higher volume and to a lesser extent, higher net revenue per transaction.
• Vacation package net revenue increased six percent in the quarter to $38.7 million due primarily to higher volume.
• Advertising and media revenue was $15.5 million in the second quarter 2013, up two percent year over year.
Operating cash flow was $206.1 million for the six months ended June 30, 2013, a 98 percent increase year over year due primarily to growth in the company's global hotel business and to the timing of cash receipts and payments. At June 30, 2013, cash and cash equivalents were $222.7 million.
• For the second consecutive year, Orbitz topped the list as America's favorite travel company to work for according to social media workplace site Glassdoor.com's 2013 Travel Industry Report Card. Orbitz ranked number one among nearly 40 leading travel employers and was the only online travel company to make the top 10 list.
• In June 2013, HotelClub completed a worldwide re-launch of its brand including a new logo and website, emphasizing HotelClub's rewards program and club benefits. HotelClub also launched ten new currencies in support of its international growth efforts.
• Across the company's consumer brand portfolio 25 percent of standalone hotel bookings are now being made via mobile devices, and on Orbitz.com nearly 30 percent are being made via mobile devices.
• In April, ebookers released a major update to its app for iPhone and iPad, "ebookers Travel: Flights, Hotels, Car Hire for iOS." The new app is the most full-featured app in the market and the first in Europe to have search and book functionality for the three main components of travel: hotels, flights and car hire.
Orbitz Partner Network
• In July 2013, JTG, the second-largest offline travel agency in Australia and New Zealand, announced that it intends to partner with Orbitz Worldwide to host and power its new online travel site, to be called “helloworld.” The two companies expect to reach final terms in the third quarter 2013, with a launch of the site in early 2014.
• In July 2013, Orbitz launched a five-part online video series, "Orbitz Originals: The Great Qatar Airways Adventure," hosted by award-winning travel expert Richard Bangs. Building on the success of previous "Orbitz Originals," which were viewed by hundreds of thousands of viewers during the past year, this unique content aims to give viewers the inspiration they seek to book the trip of a lifetime.
• During the second quarter 2013, Orbitz Worldwide signed multi-year hotel distribution agreements with Accor and LaQuinta, as well as partnership agreements with a number of regional hotel groups including Ayres Hotels in California, Atlas Hotels in Israel, Barcelo Hotels in Latin America, and Grand International Hotels collection in Malaysia.
• During the second quarter 2013, Orbitz Worldwide signed distribution agreements with a number of airlines including Alaska Airlines, Emirates, Qatar Airways, Arik Air, Porter Airlines, Seaborne Airlines and Silver Airways.
• During the second quarter 2013, Orbitz Worldwide signed partner marketing contracts with a number of destination marketing organizations including Atout France, Belize Tourism, European Travel Commission, Guatemala Tourism Board, Northern Territory (AU), Park City Convention and Visitor Bureau, Pure Michigan, South Australia Tourism, Trinidad & Tobago, Utah Office of Tourism, Visit Savannah, Visit Sweden and Visit Dallas.
For the third quarter 2013, the company expects:
• Net revenue in the range of $214 million to $220 million;
• Adjusted EBITDA between $41 million and $45 million.
For the full year 2013, the company expects:
• Net revenue in the range of $840 million to $850 million;
• Adjusted EBITDA growth between eight percent and ten percent