Galileo and Worldspan parent Travelport saw quarterly profits decline despite a rise in GDS volumes.
Business travel and Asia Pacific Q2 boost for Travelport
Galileo and Worldspan parent Travelport saw quarterly profits decline despite a rise in GDS volumes.
The company announced an EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months to June 30 of $176 million, 2% down on the same period last year.
Quarterly operating income was down by 17% to $95 million attributed mainly to unfavourable foreign exchange movements.
EBITDA for the first half of 2010 remained flat year-on-year at £315 million despite a 3% increase in net revenues to $1.179 billion.
Chief executive and president Jeff Clarke said: “During the quarter, our GDS business increased its year-on-year segment volumes by 5% due to the rebound in corporate travel and strong growth in the Asia Pacific region.
“We advanced a number of key product developments, including the roll-out of a new version of Travelport e-Pricing and Travelport Universal Desktop.
“We are also completing the migration of two major GDS contracts, with Thomas Cook in the UK, and Carlson Wagonlit in India, and we have further enhanced our geographic footprint through a strategic partnership with Sirena-Travel, Russia’s leading domestic GDS.”
Clarke described the performance of hotel and ground services wholesaler GTA in the quarter as “terrific” with 20% growth in room nights and 24% growth in segment adjusted EBITDA on a constant currency basis.
Travelport’s net debt at June 30 was $3,350 million.
