Travelportrecords6%netrevenuerisein2016

Travelport announced its financial results for the fourth quarter and full year ended December 31, 2016.

Key Points (for full year 2016 unless stated otherwise): 

* Net revenue increased 6% to USD 2,351 million. Net income of USD 15 million, income per share (diluted) of USD 0.13 and net cash provided by operating activities of USD 299 million
* Air revenue increased 3% to USD 1,651 million; Beyond Air revenue growth of 18% to USD 579 million, contributing 26% of Travel Commerce Platform revenue (2015: 23%)
* eNett net revenue increased 64% to USD 150 million
* Adjusted EBITDA increased 7% to USD 574 million, Adjusted Income per Share (diluted) increased 23% to USD 1.23 and Free Cash Flow increased USD 35 million to USD 192 million
* Fourth quarter net revenue increased 2% and Adjusted EBITDA increased 1%. Net loss of USD 9 million

Gordon Wilson, President and CEO of Travelport, commented:

"Looking ahead, we are delighted to have signed several new and significant agency deals that we expect will drive revenue growth as those customers implement and transact with us."

"2017 will see raised capital investments plus a further approximately USD 20 million of incremental strategic expenditure which, together, will enable further innovation for our customers and support sustainable and profitable long term growth."

Fourth Quarter 2016

Net revenue increased by USD 11 million, or 2%, to USD 545 million primarily due to growth in Travel Commerce Platform revenue of USD 15 million, or 3%.  Within Travel Commerce Platform revenue, Air revenue increased marginally by USD 2 million, mainly due to growth in air segments.  Beyond Air revenue increased by USD 13 million, or 10%.  Within Beyond Air, net revenue for eNett increased 43% to USD 37 million primarily due to an increase in the volume of payments settled with existing customers.  Technology Services revenue decreased by USD 4 million, or 13%, due to a reduction in hosting activities and lower development revenue.

Net income decreased by USD 15 million from a net income of USD 6 million in 2015 to a net loss of USD 9 million due to the following:

* USD 19 million decrease in operating income
* USD 5 million increase in provision for income taxes and recognition of loss on early extinguishment of debt, offset by:
* USD 9 million decrease in interest expense resulting from an unrealized gain on interest rate derivative contracts, lower interest rates and lower debt balance

Full Year 2016

Net revenue increased by USD 130 million, or 6%, to USD 2,351 million primarily due to growth in Travel Commerce Platform revenue of USD 135 million, or 6%.  Within Travel Commerce Platform revenue, Air revenue increased by USD 48 million, or 3%, mainly due to improved pricing and merchandising.  Beyond Air revenue increased by USD 87 million, or 18%.  Within Beyond Air, net revenue for eNett increased 64% to USD 150 million driven by the volume of payments settled with existing customers and several new customer implementations.  Technology Services revenue decreased by USD 5 million, or 4%, due to a reduction in hosting activities and lower development revenue.

Net income decreased by USD 5 million to USD 15 million primarily due to the following:

* USD 10 million increase in operating income, offset by:
* USD 7 million increase in provision for income taxes and recognition of loss on early extinguishment of debt
* USD 6 million gain on sale of shares of Orbitz Worldwide recognized in 2015
* USD 3 million increase in interest expense resulting from an unrealized loss on interest rate derivative contracts, offset by lower interest rates and lower debt balance

Full Year 2017 Financial Guidance

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