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Orbitz reports fourth quarter and full year 2014 results

02/13/2015| 5:14:46 PM| 中文

Chicago, February 12, 2015 - Orbitz Worldwide, Inc. (NYSE: OWW) today announced results for the fourth quarter and year ended December 31, 2014.

The Company also announced that it has entered into a definitive agreement under which Expedia, Inc. (NASDAQ: EXPE) will acquire Orbitz Worldwide for $12 per share in cash, which represents an enterprise value of approximately $1.6 billion. The acquisition is subject to approval by holders of a majority of the company's common stock and other customary closing conditions, including applicable regulatory approvals.

As a result of the announced transaction, Orbitz Worldwide will no longer provide fiscal 2015 earnings guidance and will not hold the previously scheduled call to discuss its financial results on February 13, 2015.

Fourth Quarter and 2014 Financial Highlights

• Room nights increased 18 percent year-over-year in the fourth quarter 2014 and 17 percent for the full year 2014.

• Net revenue increased 12 percent year-over-year to $221 million in the fourth quarter 2014 and increased 10 percent to $932 million for the full year 2014.

• Net income was $7.3 million in the fourth quarter 2014 and $17.3 million for the full year 2014.

• Adjusted EBITDA increased 5 percent year-over-year to $35.8 million in the fourth quarter 2014 and increased 9 percent to $156.1 million for the full year 2014.

Fourth Quarter Financial Results

Gross Bookings and Net Revenue

Gross bookings increased 10 percent year-over-year to $2.7 billion in the fourth quarter 2014. This increase was primarily driven by higher hotel, air and car transaction volume and higher average booking values per air transaction, partially offset by lower vacation package volume.

Net revenue increased 12 percent year-over-year to $220.6 million in the fourth quarter 2014. This increase was driven by higher hotel, air and car transaction volume and higher net revenue per hotel, car and vacation package transaction, partially offset by lower vacation package volume and lower net revenue per air transaction. The acquisition of certain assets and contracts from the Travelocity Partner Network ("TPN") on February 28, 2014, contributed approximately 7 percentage points to year-over-year net revenue growth for the fourth quarter 2014.

• Standalone hotel net revenue was $87.5 million in the fourth quarter 2014, up 26 percent year-over-year. This increase was primarily due to higher transaction volume. The TPN acquisition contributed approximately 9 percentage points to year-over-year standalone hotel net revenue growth for the fourth quarter 2014. Standalone hotel net revenue represented 40 percent of total fourth quarter net revenue, up from 35 percent in the fourth quarter 2013.

• Standalone air net revenue was $53.2 million in the fourth quarter 2014, down 1 percent year-over-year. This decrease was due to lower net revenue per transaction, partially offset by higher transaction volume. The TPN acquisition contributed approximately 10 percentage points to year-over-year standalone air net revenue growth for the fourth quarter 2014. Standalone air net revenue represented 24 percent of total fourth quarter net revenue, down from 27 percent in the fourth quarter 2013.

• Vacation package net revenue was $34.4 million in the fourth quarter 2014, down 1 percent year-over-year. This decrease was driven by lower transaction volume, partially offset by higher net revenue per transaction. Vacation package net revenue represented 16 percent of total fourth quarter net revenue, down from 18 percent in the fourth quarter 2013.

• Advertising and media net revenue was $19.1 million in the fourth quarter 2014, up 15 percent year-over-year. Advertising and media net revenue represented 9 percent of total fourth quarter net revenue, up from 8 percent in the fourth quarter 2013.

• Other net revenue was $26.4 million in the fourth quarter 2014, up 16 percent year-over-year. This increase was primarily due to higher car revenue, which was up 30 percent year-over-year. Other net revenue represented represented 11 percent of total fourth quarter net revenue, down from 12 percent in the fourth quarter 2013.

Operational Highlights

Consumer Brands

• During the fourth quarter 2014, 34 percent of standalone hotel bookings were made via mobile devices across the company’s global consumer brand portfolio, up from 28 percent in the fourth quarter 2013.

• On October 17, the Orbitz Rewards loyalty program completed a very successful inaugural year and in December surpassed three million program members. The Orbitz Rewards program has won multiple industry awards in the quarter, including Platinum recognition in the Best Customer Insights in Customer Experience and Technology & Trends categories at the 2014 Loyalty360 CX Awards in November.

• Orbitz.com recently launched two new installments of its successful online video initiative, Orbitz Originals, hosted by award-winning travel expert Richard Bangs. "Orbitz Originals: Bermuda – Proper Fun," viewable at orbitz.com/Bermuda, launched in January and was produced in partnership with the Bermuda Tourism Authority. "Orbitz Originals: Northern Territory – The Red Centre," viewable at orbitz.com/Northern-Territory, also launched in January and was produced in partnership with Tourism Northern Territory. To date, Orbitz Originals videos highlighting Cancun, the Cayman Islands, Florida, Jackson Hole, New York, Northern Ireland, Puerto Rico, Qatar, Vermont and Western Ireland have generated more than one million views by travelers seeking inspiration for future trips.

Orbitz Partner Services Group

• During the fourth quarter 2014, Orbitz Worldwide signed marketing and promotion agreements with Marriott Hotels & Resorts, in addition to a number of regional hotel operators including Castle Hotels & Resorts, Fkey Travel, Nacional Inn and Palladium Group.

• During the fourth quarter 2014, Orbitz Worldwide signed marketing and promotion agreements with a number of airlines including Aeromexico, Egypt Air, Lufthansa, Saudi Arabian Airlines and Swiss Air.

• During the fourth quarter 2014, Orbitz Worldwide signed partner marketing contracts with a number of destination marketing organizations including Arizona Tourism, the Delaware Tourism Office, the German National Tourist Office, the Netherlands Board of Tourism, Los Angeles CVB, Visit Philadelphia, Travel Portland, Tenerife Canary Islands Tourism, the San Diego Tourism Authority and Utah Tourism.

TAGS: Orbitz | financial result | acquisition
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