Travelport boss defends New York stock exchange listing

The boss of Travelport has defended its stock exchange listing in the US ahead of the technology company releasing its second-quarter earnings.

The boss of Travelport has defended its stock exchange listing in the US, as the technology company revealed a mixed financial performance in the second quarter.

Adjusted net income came in at $35 million for the three months to June 30 against a loss of $9 million in the same period last year.

But adjusted earnings [Ebitda] dropped by 6% to $137 million.

“The decrease is primarily the result of lower volumes and increased expenses as we continue to grow our platform through acquisition, expansion of our go-to-market commercial capabilities and incremental public company administrative expenses,” Travelport said

Net revenue was up by 1% to $554 million in the quarter mainly due to $4 million growth in travel commerce platform revenue.

However, air revenue was down by $10 million to $400 million. This was mainly attributable to lower volumes from a re-negotiated contract last year with Orbitz Worldwide and the European region, offset by growth in the Asia Pacific region, the company said.

Non-air revenue increased by 12% to $122 million while technology services revenue declined by $1 million to $32 million due to the negative impact of a renegotiated hosing contract with Delta Air Lines being largely offset by growth elsewhere in IT solutions and applications development services.

President and chief executive, Gordon Wilson, said: “Our strong second quarter performance means that we now expect full year earnings to be closer to the top end of our guidance ranges for 2015.

“Looking at the business, I am delighted that more and more airlines are turning to us for our industry-leading merchandising capabilities, including Rich Content and Branding which enables airlines to market their entire product suite and brand propositions through Travelport in the same way they do on their own websites and direct channels.

“We now have over 110 carriers signed to this solution, including, most recently, all of the Lufthansa Group airlines.

“To add further strength to our platform, we completed the acquisition of MTT in July.

“Mobile travel commerce, in which MTT specialises, is at the forefront of the evolution of how travel is being consumed and, combined with the power, content and reach of our Travel Commerce Platform, will spearhead our growth strategy with an increased digital offering to the travel industry.”