Top line revenue growth and cost control through its re-engineering efforts were the highlights of Travelport’s performance during the second quarter of 2007. (8/14/2007)
During the quarter, the company executed several strategic initiatives including the IPO of approximately 40 percent of Orbitz Worldwide, the disposition of non-core assets and the restructuring of its cost base to become the low cost provider of travel distribution.
With the net proceeds from these activities and the operating cash flow, the company reduced Travelport’s term loan debt by approximately $1 billion since the end of the second quarter, according to Travelport President and CEO, Jeff Clarke.
Mike Rescoe, Travelport Executive Vice President and CFO, said, “We continue to focus on our re-engineering efforts and as of the end of April, we had taken actions that we expect will produce approximately $147 million of annualised run rate cost savings. During the quarter, we realised $31 million of cost savings, which helped drive a 230 bps increase in Adjusted EBITDA margins. The strong performance of the company enabled us to make a discretionary $100 million prepayment of our term loan debt on May 7th.”
Travelport recognised net revenue for the quarter of $724 million and EBITDA of $128 million. Adjusted net revenue was $727 million and adjusted EBITDA was $179 million, representing growth of five percent and 15 percent, respectively, over the year ago period.
Net revenue and EBITDA from Galileo were $409 million and $125 million, respectively, for the second quarter of 2007.
“Higher revenue resulted from growth in GDS transactions, primarily in the US and Asia Pacific regions. Global transaction growth as well as our Opt-In programme in the US, more than offset the anticipated yield decline from our new US airline contracts,” stated the company.
Net revenue and EBITDA from GTA were $96 million and $26 million, respectively.