Travelport Worldwide Delivers Another Solid Quarter

Travelport Worldwide (TVPT) released strong second-quarter 2017 results on Thursday morning, detailing modest overall growth led by strength in Asia for its eNett commercial payments business.

Let's dig in for a better look at how the travel commerce platform specialist ended the first half of the year, as well as what to expect from the company going forward.

Travelport results: The raw numbers

Data source: Travelport. GAAP = generally accepted accounting principles.

What happened with Travelport this quarter

• On an adjusted (non-GAAP) basis -- which excludes stock-based compensation and restructuring expenses -- net income increased 46% to $50 million, and rose 43% on a per-share basis to $0.40.
• Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 6% to $147 million.
• Travel commerce platform revenue increased 1.7% year over year to $583.8 million, including a 1% decline in air revenue to $423.7 million, and 8% growth in "beyond air" revenue to $160.1 million.
• Within "beyond air," eNett revenue grew 16% to $44 million, driven both by new customer wins and higher volume of payments settled with existing customers.
• Travel commerce platform performance by geography:
• Asia Pacific revenue increased 9% to $141.7 million.
• Europe revenue declined 1% to $180.6 million.
• Revenue from Latin America and Canada fell 2% to $27.6 million.
• Middle East and Africa revenue rose 1% to $77.9 million.
• United States revenue rose 0.5% to $156 million.
• Technology services revenue declined 11% to just over $28.3 million.
• In April, Travelport completed the sale of its 51% ownership stake in IGT Solutions.
• Operating cash flow increased 9% to $84 million, and free cash flow grew 11% to $60 million.

IMAGE SOURCE: GETTY IMAGES.

What management had to say

Travelport CEO Gordon Wilson stated:

We delivered a solid quarter, with top line growth reflecting pressure in certain regional travel markets, the sale of IGTS and the impact of the timing of Easter. Our overall results for the first half of the year were in line with our expectations and our Travel Commerce Platform continues to gain growth momentum, especially in the European and Asian online sectors where we are increasing our share. I am also delighted to confirm that, post period-end, we concluded the renewal of our full content agreement with Delta Air Lines on a long-term basis.

Looking forward

Finally -- and similar to last quarter -- Travelport reiterated its full-year expectation for 2017 revenue in the range of $2.425 billion to $2.475 billion, and for both adjusted EBITDA and adjusted net income per share to be at the high ends of their respective ranges ($585 million to $595 million, and $1.29 per share to $1.37 per share). Travelport also increased its outlook for 2017 free cash flow to a range of $190 million to $210 million, up from previous guidance of $165 million to $185 million.

All things considered, this was another unsurprising -- and if nothing else, slightly better-than-expected -- quarter from Travelport. So despite the market's seemingly indifferent reaction with shares trading roughly even with their pre-report levels, I think long-term investors should be happy with the company's progress.