Following the recent launch of a new technology platform for ebookers brand in the UK, Orbitz Worldwide, Inc. expects the initiative to sustain growth in its European businesses. (8/14/2007)
This was shared by Steve Barnhart, CEO and President of Orbitz Worldwide, Inc. as the company disclosed its second quarter and year-to-date results.
On new technology platform, Barnhart said, “This was an important first step in rolling out our global technology platform. As additional country sites come online, we believe this new platform will enable us to steadily improve margins and sustain strong growth in our European businesses.” “Our focus continues to be on executing our strategic plan, which has resulted in solid topline growth and steadily increased profitability. We intend to grow our international brands, increase non-air revenue and invest in global technology enhancements,” he said.
The company’s brand portfolio includes Orbitz, CheapTickets and the Away Network in the Americas; ebookers in Europe; and HotelClub and RatesToGo, based in Sydney, Australia, with operations globally.
For the second quarter ended June 30, 2007, net revenue increased 11 percent to $229 million from $207 million for the second quarter of 2006. Year to date, net revenue increased 13 percent over the first half of 2006.
Orbitz Worldwide reported a GAAP net loss in the second quarter of 2007 of $32 million as compared to a GAAP net loss in the second quarter of 2006 of $116 million. Year to date, the company reported a GAAP net loss of $42 million as compared to a GAAP net loss of $132 million in the first half of 2006.
During the second quarter, the company’s gross bookings increased nine percent to nearly $3 billion. International gross bookings increased 24 percent, while domestic gross bookings increased eight percent. The increase in gross bookings was due primarily to increased volume of air travel and dynamic packaging on the Orbitz and CheapTickets branded sites and strong growth internationally on the ebookers, HotelClub and RatesToGo branded sites.
