Travelport announced financial results for the first quarter of 2017:
Highlights
* Net revenue increased 7% to USD 651 million
* Net income increased to USD 56 million
* Travel Commerce Platform revenue increased 7%
* Air revenue increased 7% to USD 474 million
* Beyond Air revenue increased 9% to USD 148 million
* eNett net revenue growth of 22% to USD 41 million
* Adjusted EBITDA increased 9% to USD 169 million
Gordon Wilson, President and CEO of Travelport, commented:
"We have started 2017 well with a particularly strong performance in Asia Pacific, the world's fastest growing and largest travel region, where we grew our air market share and saw our highest level of quarterly revenue growth for over five years...Given our positive start to the year, we are confident in our outlook for 2017 and expect our full year earnings and cash flow to come in towards the higher end of our guidance ranges."
Net revenue increased by USD 42 million, or 7%, to USD 651 million primarily due to growth in Travel Commerce Platform revenue of USD 43 million, or 7%.
Within Travel Commerce Platform revenue, Air revenue increased by USD 31 million, or 7%, mainly due to growth in air segments. Beyond Air revenue increased by USD 13 million, or 9%.
Within Beyond Air, net revenue for eNett increased by 22% to USD 41 million. Technology Services revenue decreased by USD 2 million, or 6%.
International Travel Commerce Platform revenue increased by USD 41 million, with Asia Pacific contributing primarily to this increase. Revenue from Asia Pacific increased 18% mainly due to a 13% increase in Reported Segments and growth in payment solutions in Beyond Air.
Adjusted EBITDA increased by USD 14 million, or 9%, to USD 169 million.Operating income increased by USD 19 million to USD 99 million.
Net income increased by USD 39 million to USD 56 million due to the following:
* USD 19 million increase in operating income
* USD 25 million decrease in interest expense, net, resulting from an unrealized loss on interest rate derivative contracts recognized in 2016, lower interest rates and a lower debt balance, offset by:
* USD 5 million increase in provision for income taxes
Adjusted Net Income increased by USD 13 million to USD 64 million
Full Year 2017 Financial Guidance
Travelport continues to anticipate that eNett, its commercial payments business, will grow net revenue by at least 20% in 2017. This is subject to exchange rate movements given that eNett's net revenue is largely denominated in currencies other than the U.S. dollar.
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