Travelport Redefining Travel Commerce -Second Quarter 2014 Results
ATLANTA, Aug. 4, 2014 /PRNewswire/ -- Travelport is a leading travel commerce platform providing distribution, technology, payment and other solutions for the $7 trillion global travel and tourism industry.
Gordon Wilson, President and CEO of Travelport, commented:
"The first half of 2014 has been a significant one for Travelport. We have not only demonstrated continued financial growth and strong operating performance, but we have also made a number of targeted strategic investments in Beyond Air to extend this growth, specifically in all of the payments, corporate travel and hotel distribution aspects of our Travel Commerce Platform. Additionally, we entered into a new long-term agreement with Delta Air Lines for the provision of hosting services for two of their critical airline operating systems. From a capital structure perspective, we have concluded deleveraging transactions of almost $1 billion through a series of debt for equity deals and the sale of the majority of our shares in Orbitz Worldwide. Our business is now even stronger and we remain firmly on track to deliver our strategic goals."
2014 Key Point Summary
Year-to-date 2014 growth of +4% for Net Revenue and +6% for Adjusted EBITDA
Travel Commerce Platform
Over 50 airlines have now signed for Travelport's industry leading Rich Content & Branding in addition to our merchandising capabilities
Expanded our Beyond Air capabilities through strategic investments:
Hospitality – purchased Hotelzon, a European based provider of corporate hotel booking technology
Corporate Travel – purchased 49% of Locomote, an Australian based corporate travel procurement and management platform
Payments – purchased a further 16% of eNett, our B2B payments company, taking our share from 57% to 73% in a transaction valuing the company at approximately $450 million
Signed a new long term agreement with Delta Air Lines to host their core reservations and operations systems
Successfully completed deleveraging transactions amounting to $937 million year-to-date August 4, 2014, including debt for equity exchanges and the sale of substantially all of our shares in Orbitz Worldwide
Travelport's Net Revenue of $551 million for the second quarter of 2014 was $14 million (3%) higher than the second quarter of 2013, and Adjusted EBITDA of $146 million was $7 million (5%) higher than the second quarter of 2013.
Travelport RevPas increased 2% to $5.75.
Travelport's Net Revenue of $1,123 million for year-to-date 2014 was $38 million (4%) higher than 2013 and Adjusted EBITDA of $297 million was $17 million (6%) higher than 2013.
Travelport RevPas increased 2% to $5.68.
Travelport's net debt was reduced in the first half of 2014 by $247 million to $3,093 million as of June 30, 2014, comprised of $3,256 million in debt less $163 million in cash, cash equivalents and cash held as collateral.
In March 2014, we completed a $135 million debt for equity exchange transaction.
In June 2014, we completed $182 million of debt for equity exchange transactions and sold 8.6 million Orbitz Worldwide shares for net proceeds of $54 million.
In July 2014, we completed $254 million of debt for equity exchange transactions and received net proceeds of $312 million from the sale of 39 million Orbitz Worldwide shares.
Travelport generated $42 million in net cash from operating activities for the six months ended June 30, 2014 compared to net cash from operating activities of $12 million for the six months ended June 30, 2013.