Sabre benefits from global travel upturn in second quarter

Sabre benefits from global travel upturn in second quarter

Second-quarter trading described by Sabre as “strong” has given it cause for confidence in the full-year outlook, the GDS reported in a three-month financial update.

The Texas-based travel technology giant saw quarterly revenue to June 30 increase 9.3% to $984.38 million.

Its Travel Network distribution arm saw year-on-year booking volumes growth of 7.6% to 122,864 and revenues up 13.2% $719.69 million.

The group’s smaller airline solutions division, meanwhile, saw revenues decrease 2.4% to 2014.82 million and passengers boarded fall 9.3%.

In the hospitality solutions division Sabre reported a 10.4% increase in revenue to $68.31 million although operating income fell 10.4% to $1.96 million.

Overall adjusted operating income decreased marginally by 0.3% to $172 million while adjusted Earnings Per Share grew 5.7% to $0.37.

Adjusted gross profit was up 1.4% to £373.68 million while EBITDA (a measure of profitability) stood at £277 million, up 6%.

In the period Sabre returned $64.8 million to shareholders including $38.5 million through a quarterly dividend and $26.3 million through share repurchases.

Cash provided by operating activities decreased by 5.3% to $146.6 million. Sabre maintained its full-year guidance of between 4% and 7% increase in revenues and between a 1% fall and 9% increase in net income.

Sean Menke, Sabre president and chief executive, said the quarterly performance underlined momentum and progress.

“Over the past 18 months, we’ve significantly strengthened our position as a trusted and innovative technology partner, while reinforcing our commitment to leading in next-generation technology across retailing, distribution and fulfilment across all channels.

“The macro global travel environment was supportive, and as a leader at the centre of the business of travel, we benefitted.

“We saw strong share gain at Travel Network and wrapped up large implementations including SabreSonic at LATAM and the SynXis central reservation System (CRM) at Wyndham, the world’s largest hotelier.

“The resulting strong second quarter results give us confidence in our full-year outlook and long-term business trajectory.”

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