Travelport announced its financial results for the second quarter ended June 30, 2016.
* Net revenue increased 9% to USD 606 million
* Operating income of USD 38 million and net loss of USD 14 million
* Air revenue increased 6% to USD 426 million with Beyond Air revenue growth of 22% to USD 148 million; the latter now contributing 26% of Travel Commerce Platform revenue (Q2 2015: 23%)
* eNett net revenue increased 85% to USD 38 million, with a strong contribution from global OTA customers
* Full year 2016 net revenue and Adjusted EBITDA guidance unchanged
Gordon Wilson, President and CEO of Travelport, commented:
"Within our Beyond Air portfolio, our BtoB payments business, eNett, delivered yet another excellent quarter with net revenue up 85%, driven by recent customer implementations as well as strong transaction growth at existing customers, particularly global OTAs. Assuming the continuation of current trends we anticipate eNett's full year net revenue to be in the range of USD 145-155 million – up 58%-68% year over year."
Net revenue increased by USD 52 million, or 9%, to USD 606 million primarily due to growth in Travel Commerce Platform revenue of USD 51 million, or 10%. Within Travel Commerce Platform revenue, Air increased by USD 25 million, or 6%, mainly due to improved pricing, mix and merchandising. Beyond Air increased by USD 26 million, or 22%. Within Beyond Air, eNett's net revenue increased 85% to USD 38 million driven by the volume of payments settled with existing customers and several new customer implementations. Technology Services revenue remained stable at USD 32 million.
Operating income decreased by USD 25 million to USD 38 million primarily.
Net (Loss) Income
Net income decreased by USD 31 million from a net income of USD 16 million in 2015 to a net loss of USD 14 million in 2016.
Full Year 2016 Guidance
For the full year 2016, Travelport's guidance for net revenue and Adjusted EBITDA is unchanged, as detailed below. Furthermore, we expect Adjusted Free Cash Flow, Adjusted Net Income and Adjusted Income per Share (diluted) to be higher than previously anticipated, principally due to a lower interest charge following the repricing of our USD 2.34 billion term loans which completed on June 23, 2016.
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