Travelport Worldwide Limited reports first quarter 2015 results
LANGLEY, U.K., May 6, 2015 /PRNewswire/ -- Travelport Worldwide (NYSE: TVPT) announced today its financial results for the first quarter ended March 31, 2015.
• Q1 financial performance in line with management expectations, including the year-on-year impact of renegotiated legacy contracts with Orbitz Worldwide, Inc. and Delta Air Lines
• Q1 2015 net revenue flat at $572 million, with revenue per segment sold (RevPas) up 2% to $5.73. Q1 2015 Adjusted EBITDA of $137 million, down 9% from Q1 2014
• Q1 2015 Adjusted Income per Share (diluted) of $0.24, up from $0.05 in Q1 2014
• Air revenue down 3% to $432 million in Q1 2015. Anticipated lower volumes in the US and Europe partially offset by good growth in key geographies, in particular from Asia Pacific
• Real momentum in Air going into the second half of the year, with over 100 airlines signed for Travelport's industry-leading Rich Content & Branding merchandising solution and over 60 airlines with content already live
• Strong progress continuing in Beyond Air, with revenue up 14% to $110 million in Q1 2015, representing 20% of revenue (Q1 2014: 18%)
• Hospitality segments per 100 airline tickets issued in Q1 2015 increased to 41 (Q1 2014: 37)
• Strong eNett growth in line with management expectations, with the gross dollar value of eNett Virtual Account Number transactions (VAN GDV) in Q1 2015 growing by 67% year-on-year, on a constant currency basis
Gordon Wilson, President and CEO of Travelport, commented:
"Travelport is off to a solid start in 2015 with the first quarter in line with our expectations. 2015 continues to be a transition year for Travelport as we move beyond the resolution of two key legacy contracts. Net of these, we are seeing real momentum in our business as we continue to invest in our platform and its 'go-to-market' capabilities. Our industry-leading Rich Content & Branding merchandising solution continues to rapidly gain traction across the airline community, with seven of the world's top ten airlines now participating. We also continue to see double-digit growth in the Beyond Air area of our business. This has been driven by our focus on broadening the available content in hospitality which, in turn, drove an 11% increase in hospitality segments booked per 100 airline tickets, as well as eNett's continuing expansion. We are excited about the future and remain on course with our guidance for this year."
Discussion of Results
Net revenue was $572 million for each of the three months ended March 31, 2015 and 2014. Travel Commerce Platform revenue remained flat at $542 million. A $13 million increase in Beyond Air revenue was offset by a $13 million decrease in Air revenue. Beyond Air revenue increased 14% to $110 million primarily driven by continued growth in hospitality and payments.
Adjusted EBITDA decreased by $14 million, or 9%, to $137 million.
Net loss decreased by $20 million to $7 million primarily as a result of a $49 million decrease in interest expense and loss on extinguishment of debt due to the deleveraging, debt refinancing and IPO transactions completed in 2014 plus an $11 million improvement related to our non-controlled subsidiary investments (includes a $6 million gain on the sale of all of our remaining shares of Orbitz Worldwide, Inc.), offset by a $41 million decrease in operating income.
Adjusted Net Income
Adjusted Net Income increased by $27 million, to $30 million, in the first quarter of 2015.
First Quarter Business Update
We signed new or extended agreements with several key online travel agencies (OTAs) across the world, including new business in Asia with two of the largest OTAs in South Korea, Interpark Tour and Lucky Tour, and with Akbar Travels of India. We added the business of OneTwoTrip, the largest OTA in Russia.
Hospitality segments booked per 100 airline tickets issued via our Platform increased from 37 in Q1 2014 to 41 in Q1 2015, reflective of the significant increases in content Travelport has made available over the last 12 months.
We signed a new long-term distribution agreement with Accor Hotels, a leading global hotel operator with more than 3,700 hotels and 480,000 rooms across 92 countries
Current Trading and Outlook
The second quarter of 2015 has started positively and in line with our expectations, and momentum across the business remains positive. Our guidance for full year 2015, as announced on February 23, 2015, is unchanged.