Travelport profits dip in Q1
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Travelport experienced a slight drop in profits for the first quarter of 2013.
The travel technology company, which operates the Galileo and Worldspan GDS, posted earnings before interest, tax, depreciation and amortisation (EBITDA) of US$121 million for the first three months of the year, 2% less than Q1 2013. This followed a marginal dip in revenue to US$548m, although operating profits climbed 5% to US$69m.
Announcing the results, Travelport said the loss of a contract with United Airlines contributed approximately US$25m to the drop in revenue. Were it not for this, Travelport’s revenue would have climbed 4% and its EBITDA would have risen 14%.
RevPas increased 6% year-on-year, including 20% growth in hospitality, payment processing and services revenue.
“We are today reporting… a significantly strengthened Travelport group balance sheet following April’s successful refinancing,” said Gordon Wilson, president & CEO of Travelport. “We continue to deliver on our growth strategy and the successful development of our business with increased hospitality, payment processing and services revenue, as evidenced by the leap in RevPas for the period, which exceeded our expectations. We look forward to the future with growing confidence.”
Travelport’s net debt at the end of Q1 2013 stood at US$3.22 billion.
