Travelport announced its financial results for the third quarter and nine months ended September 30, 2018.
· Net revenue increased 2% to $623 million
· Net income increased 25% to $6 million; Adjusted EBITDA increased 2% to $139 million
· Travel Commerce Platform revenue increased 2% to $598 million
· Beyond Air revenue increased 14% to $193 million, contributing 32% of Travel Commerce Platform revenue (Q3 2017: 29%); eNett net revenue increased 58% to $86 million
· Income per share (diluted) increased 4% to $0.04; Adjusted Income per Share (diluted) increased 74% to $0.31
· Net cash provided by operating activities decreased 13% to $83 million; Free Cash Flow decreased 24% to $48 million
· Anticipate 2018 net revenue, Adjusted EBITDA and Free Cash Flow to be at the lower end of guidance ranges
Gordon Wilson, President and CEO of Travelport, commented:
“We delivered net revenue and Adjusted EBITDA growth of 2% each in the third quarter. The continued strong performance of Beyond Air, driven by our virtual payments business eNett, helped us overcome the more challenging market and customer environment we anticipated for the second half of the year.
"Despite these factors and our ongoing focus on the efficiency of our cost base, our business momentum is being tempered by some specific customer headwinds. We remain well positioned for longer-term profitable growth given our commercial wins and the ongoing investments we’re making in the key areas that differentiate us, including our industry-leading travel content; our search, merchandising and shopping capabilities; and our leading mobile, data and payments solutions.”
Discussion of Results
Net revenue increased by $12 million, or 2%, to $623 million primarily due to growth in Travel Commerce Platform revenue of $11 million, or 2%.
Within Travel Commerce Platform revenue, Beyond Air revenue increased by $24 million, or 14%, offset by a decrease in Air revenue of $13 million, or 3%.
The increase in Beyond Air revenue was driven by an increase in eNett net revenue of 58% to $86 million. Technology Services revenue remained stable.
International Travel Commerce Platform revenue increased by $14 million, or 3%, with Europe mainly contributing to this increase due to an increase in its RevPas of 17%, offset partially by a decrease in its Reported Segments of 7%. The decrease in Travel Commerce Platform revenue in Asia Pacific of $5 million, or 3%, includes the loss of revenue resulting from the loss of a large Pacific-based travel agency.
Operating income decreased by $17 million, or 28%, to $44 million
Net income increased by $1 million, or 25%, to $6 million
Adjusted EBITDA increased by $3 million, or 2%, to $139 million
Adjusted Net Income increased by $17 million, or 77%, to $40 million
Full Year 2018 Financial Guidance
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