Travelport announced 2013 fourth quarter financial results, core ticket business transformation dynamic

Travelport 2¥q, the world's leading provider of trade deals, unveiled its financial results for the fourth quarter and the year ended December 31, 2013.

In response to the company's performance, Travelport president and CEO Gordon Wilson said:

"It is a pleasure to tell you that 2013 was the year Travelport successfully achieved growth," he said. Our net income has increased by 5%, as a result of the positive driving of innovation that has led to all aspects of business. We are still dynamic in the core airline business transition, and will continue to expand the beyond air project payments, hotel and advertising business. What is more gratifying is that the momentum remains the same in the early part of this year. ”

Performance Summary:

Net income grew by 5% in the year, before the adjustment of income tax before the profit growth 5%.

New ticket sales platform to attract Low-cost airlines to join, add more traditional network hub type of airline product content.

The Beyond Air project achieves double-digit growth, including advertising, hotel and payment.

Deploying a new point of sale, the sales network has covered 75% of the target customer base.

Developments in the first quarter of 2014:

To reach a new long-term cooperation with Orbitz CSM.

Extended cooperation agreements with Airways Airways, Iberia, Iberia Express and EasyJet.

The debt-for-equity swap was reduced by $135 million trillion, further improving the company's capital structure.

* Does not include losses arising from termination of United Airlines agreement

Summary of financial performance:

Quarter Four

($ millions)

The net income of Travelport in the fourth quarter of 2013 was 480 million U.S. dollars, compared with 2012 's growth of 23 million U.S. dollars (5%), adjusted after the pre-tax profit reached 109 million U.S. dollars, a year-on-year increase of 6 million U.S. dollars (4%). Travelport's revenue rose 2% per cent in the fourth quarter to $5.58.

2013 year

($ millions)

Travelport 2013 Annual net income reached 2.076 billion U.S. dollars, an increase of 74 million U.S. dollars (4%), adjusted after the pre-tax profit of $517 million, and 2012 flat. During the termination of the agreement in 2012, cooperation with United had contributed about 27 million U.S. dollars in net income, operating profits and pre-tax profits of USD 21 million, and 23 million US dollar adjusted pre-tax profits. If the impact of this agreement is not calculated, the net income of 2013 per cent year-on-year growth of 101 million U.S. dollars (5%), adjusted after the pre-tax profit growth of 23 million U.S. dollars (5%). The termination of the agreement largely affected the year-on-year growth in operating profits for the 2013-year period. Travelport's annual revenue rose 4% to $5.49.

The annual interest cost for 2013 was $342 million, an increase of $52 million compared with the same period in 2012, as the company reopened loans in June 2013, leading to higher interest rates.

The net liability for Travelport as at December 31, 2013 was $3.34 billion, which contained $3.573 billion trillion in debt, nearly 154 million dollars in cash and cash equivalents and nearly 79 million dollars in cash held as collateral.

The net cash flow from the operating activities of Travelport 2013 was 100 million US dollars, and 2012 was 181 million dollars. The decrease in net cash flows is mainly attributable to increases in interest and agency incentive expenditures and changes in operating capital.