Home > Home > Orbitz Worldwide, Inc. Reports First Quarter 2014 Results

Orbitz Worldwide, Inc. Reports First Quarter 2014 Results

05/06/2014| 10:05:46 AM| 中文

Chicago, May 5, 2014 - Orbitz Worldwide, Inc. (NYSE: OWW) today announced results for the first quarter ended March 31, 2014.

• Room nights grew 12 percent year-over-year in the first quarter 2014.

• Net revenue increased 4 percent year-over-year to $210.3 million in the first quarter 2014.

• There was a net loss of $5.9 million in the first quarter 2014 compared with net income of $146.2 million in the first quarter 2013. The year-over-year change was due to the release of a $157.5 million valuation allowance related to the company's U.S. federal deferred tax assets in 2013.

• Adjusted EBITDA increased 33 percent year-over-year to $28.7 million in the first quarter 2014.

• In April, Orbitz Worldwide successfully refinanced its $440 million in term loans with a new $450 million term loan, reducing the current weighted average interest rate by approximately one percentage point and extending maturities by at least two years to April 2021.

• On February 28, 2014, Orbitz Worldwide acquired certain assets and contracts of the Travelocity Partner Network ("TPN"), which provides technology solutions for bank loyalty programs and online commerce sites.

First Quarter 2014 Financial Results

Gross Bookings and Net Revenue

Gross bookings increased 3 percent year-over-year to $3.2 billion in the first quarter 2014. This increase was driven by higher hotel and vacation package volume and higher average booking values per air, hotel and vacation package transaction, offset by lower air volume. The acquisition of certain assets and contracts from the Travelocity Partner Network acquisition ("TPN") on February 28, 2014, contributed approximately 4 percentage points to year-over-year gross bookings growth for the first quarter 2014.

Net revenue increased 4 percent year-over-year to $210.3 million in the first quarter 2014. This increase was driven by higher hotel and vacation package transaction volume and higher net revenue per air transaction, partially offset by lower air volume and lower net revenue per hotel transaction. The TPN acquisition contributed approximately 2 percentage points to year-overyear net revenue growth for the first quarter 2014.

• Standalone air net revenue was $70.2 million in the first quarter 2014, up 1 percent year-over-year. This increase was due to higher net revenue per air transaction offset by lower transaction volume. The TPN acquisition contributed approximately 4 percentage points to year-over-year standalone air net revenue growth for the first quarter 2014.

• Standalone air net revenue represented 33 percent of total first quarter net revenue, down from 34 percent in the first quarter 2013.

• Standalone hotel net revenue was $67.2 million in the first quarter 2014, up 7 percent year-over-year. Standalone hotel net revenue increased primarily due to higher transaction volume offset by lower net revenue per transaction due to loyalty contra revenue associated with Orbitz Rewards and promotional activities. The TPN acquisition contributed approximately 2 percentage points to year-over-year standalone hotel net revenue growth for the first quarter 2014.

• Standalone hotel net revenue represented 32 percent of total first quarter net revenue, up from 31 percent in the first quarter 2013.

• Vacation package net revenue was $32.9 million in the first quarter 2014, up 4 percent year-over-year. This increase was driven by higher transaction volume. The TPN acquisition contributed approximately 2 percentage points to yearover- year vacation package net revenue growth for the first quarter 2014. Vacation package net revenue represented 16 percent of total first quarter net revenue in both 2014 and 2013.

• Advertising and media net revenue was $14.6 million in the first quarter 2014, up 12 percent year-over-year. This increase was driven by improved site optimization and new advertising products. Advertising and media net revenue represented 7 percent of total first quarter net revenue, up from 6 percent in the first quarter 2013.

Operational Highlights

Consumer Brands

• In April 2014, Orbitz.com introduced the Orbitz Rewards Visa Card, allowing travelers to rack up rewards and get closer to their next incredible getaway with no annual fee, no foreign transaction fees and no blackout dates on redemption. The Orbitz Rewards Visa Card allows cardholders to earn Orbucks SM -- the currency of Orbitz Rewards -- that can be applied towards hotel bookings around the world. When using the Orbitz Rewards card to purchase flights, hotels and vacation packages on Orbitz.com customers earn Orbucks in addition to those earned through the Orbitz Rewards loyalty program.

• In the first quarter 2014, 30 percent of standalone hotel bookings were made via mobile devices across the company's global consumer brand portfolio up from 22 percent in the first quarter 2013.

• The redesigned ebookers iOS 7 app achieved status among the “Best New Apps” on the App Store in several markets including Finland, France, Germany, Switzerland and the United Kingdom.

• In February 2014, Orbitz.com was recognized by Google as a “Top Developer” of Android apps on Google Play. The Google Play editorial staff awards the Top Developer badge to established and respected developers for their commitment to launching high-quality and innovative apps on Android.

• In April 2014, Orbitz.com was rated the number one online travel provider in the 2014 American Customer Satisfaction Index, validating its strategy of investing to make Orbitz.com the world's most rewarding place to plan and book travel.

Orbitz Partner Network

• On February 28, 2014, Orbitz Worldwide acquired certain assets and contracts of the Travelocity Partner Network ("TPN"), which provides technology solutions for bank loyalty programs and online commerce sites.

• During the first quarter 2014, Orbitz Worldwide signed partner marketing contracts with a number of destination marketing organizations including the Baton Rouge Convention and Visitors Bureau, Explore Minnesota, Reno Tahoe Convention and Visitors Bureau, Sarasota Convention and Visitors Bureau, Utah Office of Tourism, Visit Britain, Visit Florida and the Williamsburg Convention and Visitors Bureau.

• In March 2014, Orbitz.com launched the latest installment of its successful online video initiative Orbitz Originals. "Orbitz Originals: Northern Ireland," viewable at Orbitz.com/NorthernIreland, was produced in partnership with Tourism Ireland and is hosted by award-winning travel expert Richard Bangs. To date, Orbitz Originals videos highlighting Cancun, the Cayman Islands, Florida, New York, Qatar, Vermont and Western Ireland have generated more than one million views by travelers seeking inspiration for future trips.

Partner Services

• During the first quarter 2014, Orbitz Worldwide signed hotel distribution agreements with Aston Hotels and Resorts, Barcelo Hotels and Resorts, and Shanshui Trends Hotel.

• During the first quarter 2014, Orbitz Worldwide signed distribution agreements with a number of airlines including Air Nippon, Icelandair and SAS.

• In April 2014, Orbitz Worldwide and Enterprise Holdings entered into an agreement covering the Alamo, Enterprise and National car rental brands.

Outlook

For the second quarter 2014, the company expects:

• Net revenue between $239 million and $245 million; and

• Adjusted EBITDA between $42 million and $47 million.

For the full year 2014, the company expects:

• Net revenue growth in the high single digits; and

• Adjusted EBITDA growth in the high single digits.

TAGS: orbitz | financial results
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