Travelport Worldwide Limited Reports Third Quarter 2017 Results

Published on : Thursday, November 2, 2017

travelportTravelport Worldwide Limited announced today its financial results for the third quarter and nine months ended September 30, 2017.

 

Highlights (for the third quarter unless stated otherwise)

 

 

Gordon Wilson, President and CEO of Travelport, commented:

 

“Our Travel Commerce Platform delivered revenue growth of 5% for the quarter, which included revenue growth across all International regions and a particularly strong performance in Asia where we continue to gain air market share.  Our leadership there has been further strengthened by our partnership with India’s largest OTA, MakeMyTrip, together with the signing of Traveloka, which is the leading OTA in Indonesia and will now leverage our technologies to expand across Asia.  In Beyond Air, we continue to see good momentum in hotel and car bookings, while our commercial payments business eNett accelerated to 30% revenue growth for the quarter, driven by transaction growth with several major European and Asian OTAs.

 

Our Adjusted EBITDA decreased in the quarter, with several of our planned technology investments moving from design to implementation phase, as we further expand our products and capabilities.  We also incurred higher commercial expenditure relating to the growth and ongoing implementation of our signed new business.  As our mix of business continues to pivot towards the fast-growing online channel, I am confident that these investments will drive sustainable longer-term growth.  For the full year 2017, we anticipate Adjusted EBITDA growth to be within the 2 to 4% range as guided.”

 

Summary

Three months ended

September 30,

Nine months ended

September 30,

(in $ thousands, except per share amounts) 2017 2016  Change 2017 2016  Change
Net revenue 610,842 590,756 3% 1,873,712 1,805,924 4%
Operating income 60,739 62,235 (2)% 233,459 179,863 30%
Net income 4,681 21,404 (78)% 94,910 24,156 *
Income per share – diluted $0.04 $0.17 (77)% $0.76 $0.18 *
Adjusted EBITDA 136,437 150,432 (9)% 451,996 443,585 2%
Adjusted Operating Income 76,392 87,757 (13)% 268,465 267,017 1%
Adjusted Net Income 22,671 40,995 (45)% 137,034 126,237 9%
Adjusted Income per Share – diluted $0.18 $0.33 (46)% $1.09 $1.02 7%
Net cash provided by operating activities 95,735 110,926 (14)% 274,342 213,858 28%
Free Cash Flow 63,372 85,781 (26)% 195,150 143,728 36%
Cash dividend per share $0.075 $0.075 $0.225 $0.225

 

* Percentage calculated not meaningful
The Company refers to certain non-GAAP financial measures in this press release, including Adjusted EBITDA, Adjusted Operating Income (Loss), Adjusted Net Income (Loss), Adjusted Income (Loss) per Share – diluted, Capital Expenditures, Net Debt and Free Cash Flow.  Please refer to pages 10 to 13 of this press release for additional information, including reconciliations of such non-GAAP financial measures.

 

Discussion of Results for the Third Quarter of 2017

 

Unless otherwise stated, all comparisons are for the third quarter of 2017 compared to the third quarter of 2016.

 

Net Revenue
Net revenue is comprised of:

 

Three Months Ended September 30, Nine Months Ended September 30,
(in $ thousands) 2017 2016 % Change 2017 2016 % Change
Air $417,371 $407,926 2 $1,315,500 $1,277,671 3
Beyond Air 168,782 151,857 11 476,474 435,056 10
Travel Commerce Platform 586,153 559,783 5 1,791,974 1,712,727 5
Technology Services 24,689 30,973 (20) 81,738 93,197 (12)
Net Revenue $610,842 $590,756 3 $1,873,712 $1,805,924 4

 

Net revenue increased by $20 million, or 3%, to $611 million primarily due to growth in Travel Commerce Platform revenue of $26 million, or 5%.  Within Travel Commerce Platform revenue, Air revenue increased by $9 million, or 2%.  Beyond Air revenue increased by $17 million, or 11%, driven by a 30% increase in eNett net revenue, to $54 million, primarily due to an increase in the volume of payments settled with existing customers and new customer wins.  Technology Services revenue decreased by $6 million, or 20%, primarily due to the sale of IGTS in April 2017.

 

The table below sets forth Travel Commerce Platform revenue by region:

 

Three Months Ended September 30, Nine Months Ended September 30,
(in $ thousands) 2017 2016 % Change 2017 2016 % Change
Asia Pacific $145,008 $129,309 12 $437,748 $388,330 13
Europe 185,801 180,746 3 568,811 558,303 2
Latin America and Canada 27,563 26,336 5 83,919 82,617 2
Middle East and Africa 77,494 72,833 6 238,959 223,629 7
International 435,866 409,224 7 1,329,437 1,252,879 6
United States 150,287 150,559 462,537 459,848 1
Travel Commerce Platform $586,153 $559,783 5 $1,791,974 $1,712,727 5

 

The table below sets forth Travel Commerce Platform Reported Segments and global RevPas by region:

 

Reported Segments (in thousands)
Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 % Change 2017 2016 % Change
Asia Pacific 17,807 16,735 6 54,712 50,733 8
Europe 20,117 19,588 3 63,478 63,282
Latin America and Canada 4,706 4,279 10 13,862 13,353 4
Middle East and Africa 9,354 9,243 1 28,271 28,876 (2)
International 51,984 49,845 4 160,323 156,244 3
United States 33,413 34,100 (2)

 

 

Source:- TravelPort

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