Travelport’s $356 million sale of a stake in Orbitz Worldwide helped the technology firm move into the black last year, despite recording a fourth quarter loss of $42 million.
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Orbitz sale helps Travelport move back to black
Travelport’s $356 million sale of a stake in Orbitz Worldwide helped the technology firm move into the black last year, despite recording a fourth quarter loss of $42 million.
Annual net income increased by $294 million to $91 million from its previously negative figure, primarily as a result of the gain on the sale of shares in Orbitz Worldwide and a $78 million reduction in interest expense.
This was partially offset by a $47 million decline in operating income, $59 million incremental losses on early abolition of debt and a $19 million increase in a provision for income taxes.
Travelport, which went public last year with an IPO, saw full year net revenue rise by 3% to $2.1 billion and adjusted earnings [EBITDA] up by 5% to $540 million.
Non-air revenue increased by 14% to $424 million, representing 21% of travel commerce platform revenue, up from 19% in 2013.
The fourth quarter loss was reduced by $7 million year-on-year, despite a $21 million drop in operating income.
President and chief executive, Gordon Wilson, said: “These financial results seal a transformational year for Travelport.
“With double-digit growth in ‘beyond air’ and real innovations in air, we have been able to substantively improve the strength of our travel commerce platform.
“This is apparent in the near $90 billion of commerce transacted across the Platform last year, placing us amongst the global leaders of e-commerce marketplaces.”
The eNett payments business saw full year revenue growth of 49% to $67 million
Payment transactions accelerated during the fourth quarter at key agency customers, Travelport said.
“With a 7% increase in hospitality segments booked per 100 airline tickets issued in the fourth quarter, and a nearly 60% increase in revenue from eNett over the same period, we are starting to see strong and progressive returns on the focused investments that we have made,” Wilson said.
“Central to these trends are the innovations that we bring to our industry, including most recently our industry-defining rich content and branding merchandising solution for airlines.
“With such investments, a transformed capital structure and the resolution of two key legacy contracts, Travelport is well positioned for 2015.”
