Positive outlook for Travelport after ‘solid’ third-quarter results

Positive outlook for Travelport after ‘solid’ third-quarter results

Travelport issued a positive outlook for the year following its initial public offering (IPO) with estimated earnings of up to $540 million.

The technology company, which raised $445 million in September through the listing reported a “solid” third quarter performance with net income of $155 million, against a loss of $27 million in the same period last year.

Travelport said the fourth quarter has started positively, in line with expectations, with conversions of recent customer wins remaining on track.

This followed international revenue from outside the US growing by 4% in the three months to September 30 to $338 million. This represented 67% of Travel Commerce Platform revenue, with Asia Pacific revenue up 9% in the quarter.

Revenue from the US rose by 4% to $163 million driven by growth in international carrier bookings made in America, together with growth in hotel and car bookings, notwithstanding reductions in US domestic airline capacity.

Gordon Wilson, president and chief executive, said: “Travelport’s third quarter performance demonstrated continued solid growth in both net revenue and adjusted EBITDA.

“We are particularly excited that within our Travel Commerce Platform, Beyond Air revenue is showing acceleration driven in particular by hotel distribution and our eNett payments business, and that our airline merchandising capabilities have been enhanced through the launch of the latest iteration of our Smartpoint point of sale product.

“This ground breaking technology is a first for the industry and has made real the ability for the 76 carriers who have so far signed up for our Rich Content and Branding capabilities to be able to display and sell their full range of products and services to both corporate and leisure travellers who book through travel agencies, in a manner similar to the way in which these airlines sell through their direct channels.

“This all bodes well for the future, and we remain committed to investing in our platform, continuing to develop leadership positions and delivering sustainable, long-term growth in order to provide attractive long-term returns to our shareholders.”

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