Travelport Reports 17 Percent Drop in Net Revenue

Travelport Limited, the parent company of the Travelport group of companies, announced its financial results for the first quarter ended March 31, 2009. Travelport recognized net revenue of $553 million and adjusted net revenue of $554 million for the quarter, representing a 17 percent decrease in adjusted net revenue compared to the same period last year.

Travelport achieved EBITDA of $119 million and adjusted EBITDA of $136 million in the first quarter of 2009, a decrease of 21 percent in adjusted EBITDA compared to the same period last year. Jeff Clarke, Travelport’s CEO and president, said that GDS segments declined 16 percent and GTA TTV declined 30 percent year over year for the first quarter, blaming the weak travel environment.

Net revenue and EBITDA for its GDS business were $511 million and $152 million, respectively, for the first quarter of 2009. Adjusted net revenue and adjusted EBITDA for its GDS business were $512 million and $161 million, respectively, for the first quarter of 2009.

This resulted in a 14 percent reduction in adjusted net revenue and a 13 percent reduction in adjusted EBITDA compared to the first quarter of 2008. Lower revenue resulted from a 16 percent decline in segments, offset by higher yield per segment compared to the first quarter of 2008.

Agency inducements and commissions were $39 million lower, or 17 percent, compared to the first quarter of 2008. In addition, its GDS business reduced its operating expenses, excluding agency inducements and commissions, by $17 million, or 10 percent, compared to the first quarter of 2008.

Net revenue and EBITDA for GTA were $42 million and a loss of $11 million, respectively, for the first quarter of 2009. Adjusted net revenue and adjusted EBITDA for GTA in the first quarter of 2009 were $42 million and a loss of $10 million, respectively, representing a $32 million decline in adjusted revenue and a $19 million decrease in adjusted EBITDA compared to the first quarter of 2008.

Global total transaction value declined 30 percent in the quarter, driven by 19 percent lower room/nights and a 13 percent reduction in average daily rates. Operating expenses for GTA decreased $9 million, or 16 percent, during the first quarter of 2009 driven by currency changes and other cost-saving initiatives.