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Travelport ‘transformed into low cost provider’
Galileo and Worldspan parent Travelport blamed “one-time exceptional costs†for a fourth quarter loss.
The company, which also runs GTA, lost $153 million in the three months before interest, taxes, depreciation and amortization against a profit of $62 million a year previously.
For the full year, Travelport reported adjusted EBITDA of $688 million, up by four per cent.
The company acquired Worldspan last July and reduced its holding in Orbitz to 48% in October.
CEO and president Jeff Clarke described 2007 as a “transformational year†for the company.
“The reorganisation of our businesses into separate global operating units has delivered strong growth,†he said.
“The successful execution of our re-engineering programme delivered $122 million in savings during the year, which was larger and sooner than originally anticipated, and has transformed Travelport into the low cost provider in the industry which gives us a competitive advantage.
“The acquisition of Worldspan provides our GDS business with a strong position in each of the three main global regions and gives us the best balance of services of any provider.â€
Further cost savings of $167 million are anticipated by the end of 2008.
Worldspan saw fourth quarter revenues drop by 12% to $148 million due to the loss of “certain revenues from a single customerâ€. Adjusted EBITDA was $25 million for the quarter, a decline of 39%. The figure for the full year was down 28% to $192 million.
“We expect the Worldspan integration programme to address the shortfall in EBITDA that affected Worldspan in 2007,†a statement said.
Galileo saw fourth quarter adjusted EBITDA rise by 13% to $113 million, with the full year coming in at $499 million, up by 15%.
by Phil Davies
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