Home » Financial » Currently Reading:

Travelport Performance and Innovation

March 3, 2014 Financial No Comments Email Email

Travelport Limited, a leading distribution services and e-commerce provider for the global travel industry, today announces its financial results for the fourth quarter and full year ended December 31, 2013.

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

Coles-Training_250X250px“I am delighted to report a successful growth year for Travelport, with key financial performance metrics up 5% with positive innovation and traction across all aspects of the business.  We maintain forward momentum in transforming our core air business and growing our Beyond Air initiatives of payments, hospitality and advertising.  I am also pleased to note that this momentum has continued into the early part of the current year.”

Highlights

  • 5% growth in Net Revenue and 5% growth in Adjusted EBITDA for the full year*
  • New airline merchandising platform attracting low cost airline participation and wider network carrier content
  • Double digit growth in Beyond Air initiatives – including advertising, hospitality and payments
  • Deployed new Point of Sale upgrades to over 75% of our targeted customer base
  • First Quarter 2014 developments include:
    • New long-term agreement with Orbitz Worldwide
    • Renewed and extended British Airways, Iberia, Iberia Express and easyJet contracts
    • Deleveraging debt-for-equity exchange of $135 million, further improving our capital structure

_____________
* Excluding the loss of the Master Services Agreement (“MSA”) with United Airlines

Financial Highlights
Fourth Quarter 2013
(in $ millions) Q4 2013 Q4 2012 $ Change % Change
Net Revenue 480 457 23 5
Operating Income (Loss) 26 (17) 43 *
EBITDA 80 41 39 95
Adjusted EBITDA 109 103 6 4
*Not meaningful

Travelport’s Net Revenue of $480 million for the fourth quarter of 2013 was $23 million (5%) higher than the fourth quarter of 2012, and Adjusted EBITDA of $109 million was $6 million (4%) higher than the fourth quarter of 2012.

Travelport RevPas increased 2% to $5.58.

Full Year 2013
Excluding MSA
(in $ millions) 2013 2012  $ Change % Change $ Change % Change
Net Revenue 2,076 2,002 74 4 101 5
Operating Income 208 138 70 51 91 78
EBITDA 414 365 49 13 70 20
Adjusted EBITDA 517 517 23 5

Travelport’s Net Revenue of $2,076 million for the full year 2013 was $74 million (4%) higher than 2012 and Adjusted EBITDA of $517 million was flat compared to the full year 2012.

The MSA with United Airlines contributed approximately $27 million to Net Revenue, $21 million to each of Operating Income and EBITDA and $23 million to Adjusted EBITDA on a year to date basis for 2012. Excluding the impact of the MSA, Net Revenue increased$101 million (5%), and Adjusted EBITDA increased $23 million (5%) compared to 2012.  The MSA only impacted the comparison of the results of operations for six months of the year in 2013 compared to 2012.

Travelport RevPas increased 4% to $5.49.

Interest costs of $342 million for the full year 2013 were $52 million higher than 2012 due to higher interest rates on our debt as a result of the debt refinancings we completed in April and June 2013.

Travelport’s net debt was $3,340 million as of December 31, 2013, which comprised debt of $3,573 million less $154 million in cash and cash equivalents and less $79 million of cash held as collateral.

Travelport generated $100 million in net cash from operating activities for the full year 2013 compared to $181 million for 2012. The decrease is primarily a result of increased interest payments, increased customer loyalty payments and changes in operating working capital.

To further strengthen our capital structure, Travelport Worldwide Limited, our ultimate parent company, entered into separate, individually negotiated private exchange agreements with Morgan Stanley, certain funds and accounts managed by AllianceBernstein L.P. and certain funds and accounts managed by P. Schoenfeld Asset Management LP to exchange $135 million of our subordinated debt at par into common stock, par value $0.0002 (the “Common Shares”), of Travelport Worldwide at a value of $1.55 per Common Share.  An aggregate of approximately 87 million Common Shares will be issued in the exchanges, which brings our fully diluted shares outstanding to approximately 928 million.

In connection with the refinancing of our first lien credit agreement in June 2013, we amended our definition of Adjusted EBITDA to exclude the amortization of customer loyalty payments.  As a result, we have revised our reported Adjusted EBITDA for all periods presented to exclude the amortization of customer loyalty payments. Adjusted EBITDA now excludes the amortization of customer loyalty payments of $18 million and $14 million for the quarters ended December 31, 2013 and 2012, respectively, and $63 million and$62 million for the full year 2013 and 2012, respectively.

Conference Call

The Company’s fourth quarter and full year 2013 earnings conference call will be held on February 27, 2014 beginning at 2:00 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.

Comment on this Article:







Time limit is exhausted. Please reload CAPTCHA.

Platinium Partnership

ADVERTISEMENTS

Elite Partnership Sponsors

ADVERTISEMENTS

Premier Partnership Sponsors

ADVERTISEMENTS

Official Media Event Partner

ADVERTISEMENTS

Global Travel media endorses the following travel publication

ADVERTISEMENTS

GLOBAL TRAVEL MEDIA VIDEOS