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Travelport Redefining Travel Commerce -Second Quarter 2014 Results

August 6, 2014 Financial No Comments Email Email

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

Gordon Wilson, President and CEO of Travelport, commented:

“The first half of 2014 has been a significant one for Travelport.  We have not only demonstrated continued financial growth and strong operating performance, but we have also made a number of targeted strategic investments in Beyond Air to extend this growth, specifically in all of the payments, corporate travel and hotel distribution aspects of our Travel Commerce Platform.  Additionally, we entered into a new long-term agreement with Delta Air Lines for the provision of hosting services for two of their critical airline operating systems.  From a capital structure perspective, we have concluded deleveraging transactions of almost $1 billion through a series of debt for equity deals and the sale of the majority of our shares in Orbitz Worldwide.  Our business is now even stronger and we remain firmly on track to deliver our strategic goals.”

2014 Key Point Summary

  • Year-to-date 2014 growth of +4% for Net Revenue and +6% for Adjusted EBITDA
  • Travel Commerce Platform
    • Over 50 airlines have now signed for Travelport’s industry leading Rich Content & Branding in addition to our merchandising capabilities
    • Expanded our Beyond Air capabilities through strategic investments:
      • Hospitality – purchased Hotelzon, a European based provider of corporate hotel booking technology
      • Corporate Travel – purchased 49% of Locomote, an Australian based corporate travel procurement and management platform
      • Payments – purchased a further 16% of eNett, our B2B payments company, taking our share from 57% to 73% in a transaction valuing the company at approximately $450 million
  • Technology Services
    • Signed a new long term agreement with Delta Air Lines to host their core reservations and operations systems
  • Capital Structure
    • Successfully completed deleveraging transactions amounting to $937 million year-to-date August 4, 2014, including debt for equity exchanges and the sale of substantially all of our shares in Orbitz Worldwide
    • On a proforma basis, Net Debt at June 30, 2014 would have been $2.5 billion with a Total Leverage Ratio of 4.9x(1)
    • Launched a comprehensive debt refinancing transaction for our remaining debt

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(1) Proforma is calculated using June 30, 2014 Net Debt adjusted for the July 2014 Debt-for-Equity and Orbitz deleveraging transactions.  The Total Leverage Ratio is calculated using Total Debt divided by the previous twelve months’ Adjusted EBITDA as defined under our Senior Secured Credit Agreement.

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