Chicago, November 6, 2014 - Orbitz Worldwide, Inc. (NYSE: OWW) today announced results for the third quarter and ninemonths ended September 30, 2014.
• Room nights increased 19 percent year-over-year in the third quarter 2014.
• Net revenue increased 15 percent year-over-year to $253.1 million in the third quarter 2014.
• Net income was $9.0 million in the third quarter 2014.
• Adjusted EBITDA was $46.8 million in the third quarter 2014.
Gross Bookings and Net Revenue
Gross bookings increased 14 percent year-over-year to $3.1 billion in the third quarter 2014. This increase was driven by higher hotel, car, air and vacation package transaction volume and higher average booking values per hotel, vacation package and air transaction.
Net revenue increased 15 percent year-over-year to $253.1 million in the third quarter 2014. This increase was driven by higher hotel, air, vacation package and car transaction volume and higher net revenue per hotel transaction partially offset by lower net revenue per air and vacation package transaction. The acquisition of certain assets and contracts from the Travelocity Partner Network ("TPN") on February 28, 2014, contributed approximately 8 percentage points to year-over-year net revenue growthfor the third quarter 2014.
• Standalone hotel net revenue was $104.9 million in the third quarter 2014, up 26 percent year-over-year. This increasewas due to higher transaction volume and higher net revenue per transaction. The TPN acquisition contributed approximately 11 percentage points to year-over-year standalone hotel net revenue growth for the third quarter 2014.Standalone hotel net revenue represented 41 percent of total third quarter net revenue, up from 38 percent in the thirdquarter 2013.
• Standalone air net revenue was $62.8 million in the third quarter 2014, up 6 percent year-over-year. This increase wasdue to higher transaction volume offset by lower net revenue per transaction. The TPN acquisition contributedapproximately 11 percentage points to year-over-year standalone air net revenue growth for the third quarter 2014.Standalone air net revenue represented 25 percent of total third quarter net revenue, down from 27 percent in the thirdquarter 2013.
• Vacation package net revenue was $39.4 million in the third quarter 2014, up 5 percent year-over-year. This increasewas driven by higher transaction volume offset by lower net revenue per transaction. Vacation package net revenuerepresented 16 percent of total third quarter net revenue, down from 17 percent in the third quarter 2013.
• Advertising and media net revenue was $14.5 million in the third quarter 2014, up 4 percent year-over-year.Advertising and media net revenue represented 6 percent of total third quarter net revenue in both 2014 and 2013.
• Other net revenue was $31.6 million in the third quarter 2014, up 17 % year-over-year. This increase was primarily due to higher car revenue, which was up 25% year-over-year. Other net revenue represented represented 12 percent oftotal third quarter net revenue in both 2014 and 2013.
Operational Highlights
Consumer Brands
• In August 2014, ebookers launched its rewards program, Bonus+, which is available to consumers across ebookers’ 12points of sale. The ebookers Bonus+ program gives travelers an opportunity to earn Bonus+ currency when booking hotels, flights and vacation packages on ebookers and then redeem them instantly on tens of thousands of hotels around the world, with no blackout dates and no minimum redemption hurdles.
• In September 2014, Orbitz.com was named winner of the Outstanding Technology Development Award in the Illinois Technology Association’s 15th annual awards competition. The award recognized a company or organization that developed a technology tool, process or service that made a substantial improvement on business metrics and specifically recognized Orbitz.com for the integration of the Orbitz Rewards loyalty program into the Orbitz.com mobile app.
Orbitz Partner Network
• In November 2014, Orbitz Partner Network signed an agreement with Bank of America that will enable Orbitz PartnerNetwork to provide a variety of services to one of the largest banks in the world. As the cornerstone of the relationship,Orbitz Partner Network expects to power the travel rewards program of Bank of America with its proprietary technology toenable bank customers to use cash as well as their rewards points to make air, hotel and car bookings. Orbitz PartnerNetwork expects to begin powering the Bank of America site in the first half of 2015.
• In October 2014, Orbitz Partner Network signed a multi-year agreement with Hyatt Hotels to power dynamic packaging on the hotel brand's vacation package website, HyattTravel.com. Orbitz Worldwide will package Hyatt-branded hotels with air and car travel products and services that will be available to Hyatt customers through a customized site hosted on Orbitz Worldwide's private label platform.
• In September 2014, Orbitz Partner Network launched an exclusive multi-year partnership with RIU Hotels & Resorts to power dynamic vacation package bookings on the hotel brand's website, riu.com, which offers vacation packages to RIU's properties in Mexico, Central America and the Caribbean. The partnership enables RIU to leverage Orbitz PartnerNetwork's leading technology platform to provide vacation package capabilities on a highly customized private label site.
Orbitz for Business
• Orbitz for Business entered into an agreement with Concur to enable OFB customers to directly connect with Concur's expense solution via Concur's Triplink platform.
Orbitz Partner Services Group
• During the third quarter 2014, Orbitz Worldwide signed marketing and promotion agreements with a number of hoteloperators including Dorchester Collection, HMH International, Jetwing Hotels, La Quinta Holdings and Les HotelsNouvelle France Group.
• During the third quarter 2014, Orbitz Worldwide signed marketing and promotion agreements with a number of airlinesincluding American Airlines, Egypt Air, Peruvian Airlines, Precision Air and TAME Ecuador.
• During the third quarter 2014, Orbitz Worldwide signed partner marketing contracts with a number of destination marketing organizations including the European Travel Commission, Greater Fort Lauderdale CVB, Illinois Tourism,Montana Tourism, New Orleans CVB, Ponte Vedra and The Beaches CVB, Savannah Area CVB, Tennessee Department ofTourist Development, Tourism Fiji and Tourism New Zealand.
Outlook
For the full year 2014, the company expects:
• Net revenue growth between 9 and 10 percent year-over-year; and
• Adjusted EBITDA growth between 8 and 10 percent year-over-year.
For the full year 2015, the company expects:
• Net revenue growth in the mid single digits year-over-year; and
• Adjusted EBITDA growth in the mid to high single digits year-over-year.
