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Travelport Q3 revenue up, profits down

November 10, 2011 | Online Travel

Despite net revenue in the period increasing from $488 million to $509 million, operating income at GDS Galileo and Worldspan parent company Travelport fell 32% in the third quarter to $51 million from the $75 million earned in the same period in 2010.

Operating income at GDS Galileo and Worldspan parent company Travelport fell 32% in the third quarter to $51 million from the $75 million earned in the same period in 2010.

The third quarter results show that losses occurred despite net revenue in the period increasing from $488 million to $509 million. Operating costs rose 11%, from $413 million to $458 million in June-September 2011. Much of this is attributable to higher costs of capital because of the company’s credit rating being downgraded earlier this year.

Gordon Wilson, President and CEO of Travelport, said, “We continue to gain momentum on our commercial objectives of enhanced travel content aggregation, the deployment of new point of sale technologies for travel agencies and travel product suppliers, and expanding our geographic and customer segment footprints. I am pleased to report solid results for the quarter, with revenue up 4%, volume up 3% and adjusted EBITDA in line with management expectations despite the uncertain economic climate in many key geographies.”

Volume (segment bookings) in the quarter rose 3% to 89 million. Segments in Europe rose 0.2% from 20.2 million segments in Q3 2010 to 20.4 million in the last quarter.

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