Travelport announced financial results for the second quarter of 2017:
* Net revenue increased 1% to $612 million
* Travel Commerce Platform revenue increased 2% to $584 million
* Beyond Air revenue increased 8% to $160 million, with eNett revenue up 16% to $44 million driven by strong share of business gains from customers in Asia Pacific
* Completed sale in April 2017 of 51% ownership interest in IGT Solutions Private Ltd. (IGTS)
* Net income of $34 million; Adjusted EBITDA increased 6% to $147 million
* Net cash provided by operating activities increased 9% to $84 million; Free Cash Flow increased 11% to $60 million
* Post period-end completed successful repricing of term loans, reducing interest rate by 50 basis points
* Full year 2017 net revenue and earnings guidance unchanged; raising Free Cash Flow guidance
Gordon Wilson, President and CEO of Travelport, commented:
“We delivered a solid quarter, with top line growth reflecting pressure in certain regional travel markets, the sale of IGTS and the impact of the timing of Easter. Our overall results for the first half of the year were in line with our expectations and our Travel Commerce Platform continues to gain growth momentum, especially in the European and Asian online sectors where we are increasing our share. I am also delighted to confirm that, post period-end, we concluded the renewal of our full content agreement with Delta Air Lines on a long-term basis.
In Beyond Air, we are seeing good progress in hotel and car bookings, and have launched several new digital innovations for our airline and agency partners that bolster our position as the industry leader for mobile travel commerce. Our commercial payments business, eNett, also continues to make excellent progress with both existing customers and new business development. The second half has started well across the group, and we remain on track to deliver our growth targets for the year.”
Net revenue increased by $6 million, or 1%, to $612 million primarily due to growth in Travel Commerce Platform revenue of $10 million, or 2%.
Within Travel Commerce Platform revenue, Air revenue decreased by $2 million, or 1%. Beyond Air revenue increased by $12 million, or 8%.
Within Beyond Air, net revenue for eNett increased by 16% to $44 million primarily due to an increase in the volume of payments settled with existing customers and new customer wins. Technology Services revenue decreased by $4 million, or 11%, primarily due to the sale of IGTS.
Net income increased by $49 million from a net loss of $14 million in 2016 to a net income of $34 million in 2017 mainly due to the following:
* $36 million increase in operating income
* $12 million decrease in interest expense, net, due to lower interest rates, a lower outstanding debt balance and the favorable impact of fair value changes on interest rate swap derivative contracts
* $3 million loss on early extinguishment of debt recognized in 2016 as a result of our debt repricing, offset by:
* $3 million increase in provision for income taxes
Travelport continues to anticipate that our commercial payments business, eNett, will grow net revenue by at least 20% in 2017. This is subject to exchange rate movements given that eNett’s net revenue is largely denominated in currencies other than the U.S. dollar.
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