CHICAGO, Nov. 12 /PRNewswire-FirstCall/ -- Orbitz Worldwide, Inc. (NYSE: OWW) today announced that for the third quarter ended September 30, 2007, net revenue increased 20 percent to $221 million from $184 million for the third quarter of 2006. Year to date, net revenue increased 16 percent over the first nine months of 2006. Orbitz Worldwide reported a net loss in the third quarter of 2007 of $32 million, as compared to a net loss in the third quarter of 2006 of $9 million. Year to date, Orbitz Worldwide reported a net loss of $74 million as compared to a net loss of $141 million in the first nine months of 2006.
Adjusted EBITDA for the third quarter of 2007 was $43 million, an increase of 23 percent over Adjusted EBITDA of $35 million for the third quarter of 2006. Year to date Adjusted EBITDA was $107 million, an increase of 32 percent over the first nine months of 2006. Adjusted earnings per share were $0.23 for the third quarter of 2007 and $0.55 for the nine months ended September 30, 2007.
"Our third quarter 2007 financial performance improved sharply over 2006 levels as evidenced by our 23 percent growth in Adjusted EBITDA. Our international businesses and CheapTickets posted particularly strong year over year revenue growth. In the U.K., our new technology platform has been well received by ebookers customers, and we expect it to continue to drive both top-line growth and operating efficiencies.
Our focus is on executing the strategic plan we outlined during the IPO process. To that end, we continue to roll out our new technology platform across our European sites and we will invest in our growing international hotel business as we remain focused on increasing our mix of non-air revenue," said Steve Barnhart, CEO and president of Orbitz Worldwide.
Third Quarter 2007 Financial Highlights
Gross Bookings and Net Revenue
For the third quarter of 2007, Orbitz Worldwide´s gross bookings increased 11 percent to $2.6 billion versus $2.4 billion for the third quarter of 2006. International gross bookings increased 31 percent (20 percent after adjusting for the impact of foreign exchange), while domestic gross bookings increased 8 percent for the third quarter of 2007 as compared to the third quarter of 2006. The increase in gross bookings was due primarily to a higher volume of air travel and dynamic packaging domestically and strong growth internationally at ebookers, HotelClub and RatesToGo.
Third quarter 2007 net revenue increased 20 percent over third quarter 2006.
-- Air revenue. Air revenue was $92 million for the third quarter of 2007, up from $85 million, or 8 percent, in the third quarter of 2006. Higher volume globally drove this year-over-year increase. On a comparable basis, air revenue increased 14 percent for the third quarter of 2007 as compared to the third quarter of 2006.
-- Non-air and other revenue. Non-air and other revenue was $129 million for the third quarter of 2007, up from $99 million, or 30 percent, in the third quarter of 2006. This increase was due primarily to a shift to merchant bookings from retail bookings, higher domestic Average Daily Rates for hotel, growth in dynamic packaging and international hotel bookings, and higher revenue from travel insurance. On a comparable basis, non-air and other revenue increased 10 percent for the third quarter of 2007 as compared to the third quarter of 2006.
Other Highlights
-- Orbitz Worldwide migrated its ebookers U.K. operations onto a new IT platform in July 2007. Ireland is on schedule to begin migration by year-end 2007.
-- Orbitz Worldwide consolidated its corporate travel solutions group into a single brand, Orbitz for Business, which will provide efficiencies in marketing and greater brand recognition. In addition, Orbitz Worldwide signed new corporate accounts, including the University of California and its nine campus collegiate organization which have approximately 40,000 business travelers.
-- Orbitz.com and CheapTickets.com became Virgin America´s first online distribution partners as Virgin America launched their U.S. service in July 2007.
-- Orbitz Worldwide beta launched OrbitzTLC Traveler Update, which enables travelers to post updates on the status of local travel conditions, including security wait times and traffic, via PDA or text messaging for more than 40 airports across the United States. The microsite is enhanced by data from the Transportation Security Administration, local airport parking and traffic, plus weather updates.
About Orbitz Worldwide
Orbitz Worldwide (NYSE: OWW - News) is a leading global online travel company that uses innovative technology to enable leisure and business travelers to research, plan and book a broad range of travel products. Orbitz Worldwide owns and operates a portfolio of consumer brands that includes Orbitz (http://www.orbitz.com), CheapTickets (http://www.cheaptickets.com), ebookers (http://www.ebookers.com), HotelClub (http://www.hotelclub.com), RatesToGo (http://www.ratestogo.com), the Away Network (http://www.away.com) and corporate travel brand Orbitz for Business (http://www.orbitzforbusiness.com).
