Please ensure Javascript is enabled for purposes of website accessibility

Travelport Worldwide Starts 2017 Strong

By Steve Symington – May 9, 2017 at 1:12PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The travel commerce platform specialist climbed higher after posting a solid first quarter.

Travelport Worldwide (TVPT) announced first-quarter 2017 results on Tuesday morning, highlighting broad-based growth led by strength in the Asia-Pacific region, as well as the continued momentum of its eNett commercial payments business.

Let's fasten our seat belts, then, to get a better look at how Travelport kicked off the new year, as well as what investors should expect in the quarters ahead.

Businessman walking toward plane


Travelport results: The raw numbers


Q1 2017

Q1 2016

Year-Over-Year Growth


$650.8 million

$609.3 million


GAAP net income

$55.9 million

$17.2 million


GAAP earnings (loss) per diluted share




Data source: Travelport. 

What happened with Travelport this quarter

  • On an adjusted (non-GAAP) basis -- which excludes items like stock-based compensation and restructuring costs -- Travelport's net income increased 26.3% year over year to $64.4 million, or $0.51 per diluted share.
  • Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 9% year over year to $169 million.
  • Travel commerce platform revenue increased 7.5% year over year to $622.1 million, including 6.9% growth in Air revenue to $474.5 million, and 9.3% growth in Beyond Air revenue to $147.6 million.
    • Within Beyond Air, eNett revenue climbed 22% to $41 million, driven by both new customer wins and higher payment volume settled with existing customers.
  • Technology services declined 5.5% year over year to $28.7 million, due to lower development revenue and fewer hosting activities.
  • Revenue by geography included:
    • 18% growth in Asia-Pacific revenue to $151 million
    • 14% growth in the Middle East and Africa to $83.6 million
    • 4% growth Europe to $202.4 million
    • 3% growth in Latin America and Canada to $28.8 million
    • 1% growth in the United States to $156.3 million
  • Subsequent to the end of the quarter, completed the divestment of Travelport's 51% stake in India-based IGT Solutions.
  • Generated free cash flow of $71 million, up from $3.7 million in the same year-ago period.
  • Travelport held steady its quarterly cash dividend of $0.075 per share.

What management had to say

Travelport CEO Gordon Wilson stated:

We have started 2017 well with a particularly strong performance in Asia Pacific, the world's fastest growing and largest travel region, where we grew our air market share and saw our highest level of quarterly revenue growth for over five years. I am delighted that our leadership positions in airline content and merchandising, hospitality, mobile commerce and commercial payments are translating into greater revenue from existing customers, as well as new business wins across multiple geographies.

Looking forward 

Travelport also reiterated its full-year guidance for 2017 revenue of $2.425 billion to $2.475 billion. At the same time, the company now expects to to be at the high end of its previous guidance ranges for 2017 adjusted EBITDA of $585 million to $595 million, adjusted net income of $165 million to $175 million (or $1.29 to $1.37 per share), and free cash flow of $165 million to $185 million. 

In short, while Travelport's results weren't exactly jaw-dropping, this was a good quarter with broad-based strength that leaves the company ahead of its original goals for the year -- and all as it continues to invest in its most promising strategic growth opportunities. With that in mind, I think Travelport shareholders should be more than happy with where the company stands today.

Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Travelport Worldwide. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Travelport Worldwide Limited Stock Quote
Travelport Worldwide Limited

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.