Travelport Reports Modest Increase in 2Q Net Revenue

Travelport said it saw modest increases in net revenues in the second quarter -- 1 percent over the second quarter of 2009 and 3 percent over the first half of 2009. The company’s adjusted EBITDA was $176 million, a 2 percent decrease over second quarter 2009. For the first half of the year, EBITDA was $315 million, which was flat as compared with the first half 2009.

Travelport’s GDS business increased by 5 percent year on year, said Jeff Clarke, CEO and president, mainly due to the rebound in corporate travel and strong growth in the Asia Pacific region. “Travelport’s first half performance was in line with management’s expectations. I’m particularly pleased with the Company’s strong cash flow growth during the period,” Clarke said.

Net revenue and segment EBITDA for the company’s GDS business were $520 million and $160 million, respectively, for the second quarter of 2010, representing a 1 percent increase in net revenue and a decrease of 4 percent in segment EBITDA compared to the second quarter of 2009.

Segment adjusted EBITDA for the GDS business was $164 million for the second quarter of 2010, a 5 percent reduction as compared to the second quarter of 2009. Increased net revenue resulted from a 5 percent increase in segments as compared to the second quarter of 2009 and an 11 percent decrease in airline IT Solutions revenue associated with the merger of Delta and Northwest. Excluding a one-time $8 million gain realized in 2009 from a commercial legal settlement, Clarke said that second quarter 2010 operating costs were $7 million lower, due primarily to wage cuts and other cost management efforts.

For the first half of 2010, net revenue and segment EBITDA for the GDS business were $1,056 million and $311 million, respectively, representing a 3 percent increase in net revenue and a decrease of 3 percent in segment EBITDA compared to the first half of 2009. Segment adjusted EBITDA for the GDS business was $317 million for the first half of 2010, a 5 percent reduction when compared to the first half of 2009.

Increased net revenue resulted from a 5 percent increase in segments as compared to the first half of 2009, a 1 percent increase in average revenue per segment, and a 10 percent decrease in Airline IT Solutions revenue associated with the merger of Delta and Northwest. Travelport owns 48 percent of Orbitz Worldwide and during the second quarter and first half of 2010, Travelport recorded $5 million and $2 million, respectively, in earnings from its investment in Orbitz.