Travelport announced its financial results for the fourth quarter and full year ended December 31, 2017.
Highlights
• Net revenue increased 4% to $2,447 million, including Travel Commerce Platform revenue growth of 5% to $2,341 million
• Net income increased $125 million to $140 million; Adjusted EBITDA increased 3% to $590 million
• Income per share (diluted) increased $1.00 to $1.13; Adjusted Income per Share (diluted) increased 17% to $1.44
• Net cash provided by operating activities increased 6% to $318 million; Free Cash Flow increased 4% to $200 million
• Fourth quarter net revenue increased 5%; net income increased $54 million; and Adjusted EBITDA increased 6%
• 2018 guidance issued, including net revenue growth expected to be 4% to 6%, Adjusted EBITDA growth (1)% to 3% and Free Cash Flow growth 5% to 15%
Gordon Wilson, President and CEO of Travelport, commented:
“In 2017, Travelport again delivered on or exceeded guidance on all financial growth targets. In line with our strategy, we achieved a strong performance in Asia and Latin America where our air share grew as we won new business. In addition, Beyond Air revenue grew by 11% in 2017 as we continued to benefit from investment in growing our digital solutions, including mobile apps, hospitality and commercial payments.
Discussion of Results
Net revenue increased by $28 million, or 5%, to $574 million primarily due to growth in Travel Commerce Platform revenue of $31 million, or 6%. Within Travel Commerce Platform revenue, Air revenue increased by $12 million or 3%. Beyond Air revenue increased by $19 million, or 14%. This increase in Beyond Air revenue was driven by a 46% increase in eNett net revenue to $54 million primarily due to an increase in the volume of payments settled with existing customers and new customer wins. Technology Services revenue decreased by $3 million, or 12%, primarily due to the sale of IGT Solutions Private Ltd. (“IGTS”) in April 2017.
International Travel Commerce Platform revenue increased by $32 million, with Europe and Middle East and Africa contributing a majority of this increase. Operating income increased by $32 million to $52 million. Net income increased by $54 million from a net loss of $9 million in 2016 to net income of $45 million in 2017. Adjusted EBITDA increased by $7 million, or 6%, to $138 million. Adjusted Net Income increased by $16 million to $44 million.
Full Year 2018 Financial Guidance
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