LANGLEY, U.K., November 2, 2017 — Travelport Worldwide Limited (NYSE: TVPT) announced today its financial results for the third quarter and nine months ended September 30, 2017.
Highlights (for the third quarter unless stated otherwise)
- Net revenue increased 3% to $611 million
- Net income decreased 78% to $5 million, primarily driven by an increase in the provision for income taxes; Adjusted EBITDA decreased 9% to $136 million
- Travel Commerce Platform revenue increased 5% to $586 million, offset, as expected, by a decrease in Technology Services revenue of 20% to $25 million largely due to the sale of IGT Solutions Private Ltd. (IGTS) in April 2017
- Beyond Air revenue increased 11% to $169 million, contributing 29% of Travel Commerce Platform revenue (Q3 2016: 27%). eNett revenue increased 30% to $54 million
- International revenue increased 7% driven by growth in both Reported Segments and RevPas, with 12% revenue growth in Asia Pacific and segment growth in all regions
- Net cash provided by operating activities decreased 14% to $96 million; Free Cash Flow decreased 26% to $63 million
- Completed successful repricing of term loans, reducing interest rate by 50 basis points, and made an additional $50 million voluntary prepayment of term loans
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.”
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