Travelport has reported a “solid” second quarter and half year ended June 30, 2017 with net revenue increasing 1% to US$612 million.
Travel Commerce Platform revenue rose 2% to US$584 million, with Asia Pacific contributing primarily to this increase due to a 4% increase in both Reported Segments and RevPas.
The revenue from its non-air business, Beyond Air, increased 8% to US$160 million, attributed to rise in hotel and car bookings,
eNett, Travelport’s commercial payments business, saw a 16% hike in revenue to US$44 million, driven by strong business gains from customers in Asia Pacific.
eNett’s revenue rose to US$44 million (Image credit: TravelportTube)
The net income of the travel commerce giant stood at US$34 million, and adjusted EBITDA up to US$147 million.
Other highlights of the H1 2017 results:
- Completed sale in April 2017 of 51% ownership interest in IGT Solutions Private Ltd (IGTS)
- Net cash provided by operating activities increased 9% to US$84 million; Free Cash Flow increased 11% to $60 million
- Full year 2017 net revenue and earnings guidance unchanged; raising Free Cash Flow guidance
“We delivered a solid quarter, with top line growth reflecting pressure in certain regional travel markets, the sale of IGTS and the impact of the timing of Easter,” said Gordon Wilson, president and CEO of Travelport.
Gordon Wilson: Company on track to deliver growth targets for the year. (Image credit: Travelport)
“Our overall results for the first half of the year were in line with our expectations, and our Travel Commerce Platform continues to gain growth momentum especially in the European and Asian online sectors where we are increasing our share.”
Wilson said the company has launched several new digital innovations for its airline and agency partners “to bolster our position as the industry leader for mobile travel commerce”.
Among these products are Trip Assist, a mobile app for APAC agencies to engage with clients on the go; Travelport Fusion, a mobile product for airlines to meet increasing demand for services by mobile-first customers (to be deployed in the coming weeks); and Travelport Resolve, a tool for airlines to find hotels for customers during disruptions.
Wilson revealed the company has concluded the renewal of full content agreement with Delta Air Lines on a long-term basis.
Looking ahead he said: “The second half has started well across the group, and we remain on track to deliver our growth targets for the year.”
Click here to view the full financial results.
• Featured image credit: Auris/iStock
