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Travelport Limited Travel Content Leadership

May 12, 2014 Financial No Comments Email Email

Travelport is a travel commerce marketplace providing distribution, technology, payment and other solutions for the $7 trillion global travel and tourism industry.

Commenting on developments, Gordon Wilson, President and CEO of Travelport, said:

“As we celebrate the one year anniversary of our merchandising platform, I am pleased we have further strengthened our air proposition with the signing of new ground-breaking agreements with Ryanair and AirAsia, an extended partnership with easyJet, and over thirty airline agreements for our Rich Content and Branding functionality.  Through these unrivalled agreements, we are now uniquely positioned to sell the content of all the world’s top ten airlines.  This milestone builds on our leadership in global hotel content distribution and augments our strong financial performance.”

Highlights:             

  • Net Revenue +4% and Adjusted EBITDA +7%
  • Unrivalled content added to our Travel Commerce Platform:
  • Uniquely distributing content from all the world’s top ten airlines
  • One year anniversary of Travelport Merchandising Platform™ marked by:
    • New agreements with Ryanair and AirAsia and an extended partnership with easyJet
    • Over 30 airlines signed for Rich Content and Branding functionality, including British Airways / Iberia and Air China
  • Expanded hotel content leadership – now offering 580,000 unique properties
  • Improvement of capital structure with deleveraging $135 million debt-for-equity exchange transactions completed in March

Financial Highlights

During the first quarter 2014, we realigned our reporting to better reflect our underlying operations to enable travel commerce through our platform.  As a result, we are reporting Adjusted EBITDA and Adjusted Net Income as key non-GAAP performance metrics, as defined on page 12, and presented in the table below:

(in $ millions) Q1 2014 Q1 2013 $ Change % Change
Net Revenue 572 548 24 4
Operating Income 75 69 6 9
Net Income (Loss) (27) (10) (17) (170)
Adjusted Net Income 3 14 (11) (79)
Adjusted EBITDA 151 141 10 7

Further, we have added Adjusted Free Cash Flow and Adjusted Unlevered Free cash flow to our Cash Flow reporting metrics on page 7, as also defined on page 12.  We are also reporting a split of our Revenue into Travel Commerce Platform revenue, including our Air and Beyond Air revenue, and Technology Services revenue in the table on page 8 with three year historical information provided on page 9.

Net Revenue of $572 million for the first quarter of 2014 was $24 million (4%) higher than the first quarter of 2013, and Adjusted EBITDA of $151 million was $10 million (7%) higher than the first quarter of 2013.

Adjusted Net Income of $3 million decreased from $14 million for the first quarter of 2014 primarily due to a $13 million increase in interest costs.

Travel Commerce Platform RevPas increased 3% to $5.61.

Interest costs of $83 million for the three months ended March 31, 2014 were $13 million higher than 2013 due to higher interest rates on debt as a result of our debt refinancing in 2013.

Travelport’s net debt reduced to $3,226 million as of March 31, 2014, which comprised debt of $3,485 million less $180 million in cash and cash equivalents and less $79 million of cash held as collateral, from $3,340 million as of December 31, 2014 following the deleveraging $135 million debt-for-equity exchange transactions completed in March.

Travelport generated $23 million in net cash from operating activities for the three months ended March 31, 2014 compared to net cash used in operating activities of $21 million for the three months ended March 31, 2013. The improvement of $44 million is primarily a result of the timing of interest payments, as some payments were deferred into the second quarter of 2014 as a result of our 2013 refinancing.

We continue to assess and evaluate potential capital markets transactions, including potential debt-for-equity exchanges, and similar transactions.  We can give no assurances that we will pursue or consummate such transactions as they are dependent, among other things, on market conditions and other factors that are inherently unpredictable.”

Conference Call

The Company’s first quarter 2014 earnings conference call will be held on May 8, 2014 beginning at 2.30 p.m. (EST). Details for this conference call as well as the earnings presentation are available through the Investor Center section of the Company’s website (www.travelport.com/investors/Financial-Calendar), where pre-registration for the call is required. 

A recording of the call will be made available within 24 hours in the Financial/Operating Data section of the Investor Centre on the Company’s website.

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