Travelport Announces Fourth Quarter and Full Year 2008 Results

Fourth Quarter Highlights - Net Revenue of $524 million - Adjusted Net Revenue of $525 million , representing a (10%) decrease over the fourth quarter of 2007 - EBITDA of $117 million - Adjusted EBITDA of $149...


Fourth Quarter Highlights

- Net Revenue of $524 million

- Adjusted Net Revenue of $525 million, representing a (10%) decrease over the fourth quarter of 2007

- EBITDA of $117 million

- Adjusted EBITDA of $149 million, representing a 10% increase over the fourth quarter of 2007

Full Year 2008 Highlights

- Net Revenue of $2.527 billion

- Adjusted Net Revenue of $2.530 billion, representing a (3%) decrease over the full year 2007

- EBITDA of $616 million

- Adjusted EBITDA of $716 million, representing a 3% increase over the full year 2007

Worldspan Synergy and Re-engineering Cost Savings Highlights

- Worldspan synergies on schedule, actions taken to date to achieve annual run rate synergies of $133 million out of a target of $150 million

- Realized over $260 million in costs savings during the full year 2008 from the re-engineering of the Travelport business and Worldspan integration

NEW YORK , Feb. 24 /PRNewswire-FirstCall/ -- Travelport Limited, the parent company of the Travelport group of companies, today announced its financial results for the fourth quarter and full year ended December 31, 2008 . Travelport recognized net revenue of $524 million and adjusted net revenue of $525 million for the fourth quarter of 2008, representing a (10%) decrease in adjusted net revenue over the same period last year. Travelport achieved EBITDA of $117 million and adjusted EBITDA of $149 million in the fourth quarter of 2008, representing an increase of 10% in adjusted EBITDA over the same period last year. For the full year 2008, Travelport adjusted revenue declined (3%) and adjusted EBITDA increased 3%.

(Logo: http://www.newscom.com/cgi-bin/prnh/20061023/NYM260LOGO )

* May not calculate due to rounding

(1) 4Q 2007 includes Orbitz Worldwide results from October 1, 2007 to October 31, 2007 .

(2) Adjusted results exclude Orbitz Worldwide and include Worldspan in all periods, as if both transactions had taken place on January 1, 2007 .

* May not calculate due to rounding

(1) FY 2007 includes Orbitz Worldwide results from January 1, 2007 to October 31, 2007 .

(2) FY 2007 includes Worldspan results from August 21, 2007 to December 31, 2007 .

(3) Adjusted results exclude Orbitz Worldwide and include Worldspan in all periods, as if both transactions had taken place on January 1, 2007 .

Travelport CEO and President, Jeff Clarke , stated: "I'm pleased Travelport was able to grow profitability in the fourth quarter and full year 2008 given the significant decline in industry demand and the unprecedented macroeconomic environment. This was made possible by the excellent execution during these challenging times. The environment for travel continued to weaken into the fourth quarter as the expected airline capacity reductions materialized and the demand for those seats continued to be impacted by the global recession. GDS segments declined 15% year-over-year during the quarter and 11% for the year. The industry downturn has now also affected GTA. For the full year 2008, TTV grew 3%, but declined 19% year over year for the fourth quarter. Despite these headwinds, Travelport was able to grow adjusted EBITDA 10% during the fourth quarter and 3% for the full year, compared to the prior year periods. We expect 2009 may be a challenging year as our incremental year-over-year cost savings may not be sufficient to offset the potential weaker demand for travel services facing the travel industry."

Mike Rescoe , Travelport CFO, stated: "Over two years ago, we started reducing Travelport's cost structure through our re-engineering cost savings and Worldspan synergies programs. These actions have better positioned the company to withstand the significant decline in travel demand that has continued to deteriorate throughout the year. We believe we are better positioned to operate through this challenging environment and take advantage of a rebound in travel when it occurs. During the quarter, we realized $48 million of cost savings from our re-engineering program, compared to $37 million of cost savings realized during the fourth quarter of 2007. We also realized $30 million from Worldspan synergies during the period. For the full year 2008, Travelport generated $124 million in cash from operations and ended the year with $345 million in cash and cash equivalents."

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