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Friday, March 23, 2012

Travelport reinstates bonus program for employee - profits suffer

Travelport reported its 2011 results.  Net revenues were up for the full year at 2% over 2010, but operating income was down 27%.   In an interview with CEO Gordon Wilson, Travelport attributed the loss to the reinstatement of bonus programs for its employees.

Travelport's GDS transactions during the December quarter grew by 2 percent overall and 4 percent in the Americas versus prior-year levels, the company announced. 

The regional mix for Travelport in 2011 for the Americas was up from 49% of total, to 50% of total.  The other regions each declined less than 1% each, but if you look at 4th quarter numbers, the declines were in Europe and Asia/Pacific with MEA growing 1% of total.

Full-year 2011 global transactions reached 355 million, 2 percent higher than in 2010.





2010 2011
In Millions 4Q
Full Year
4Q Growth Full Year Growth









Net Revenue  $452
 $1,996
 $465 3%  $2,035 2%
Operating Income  $45
 $274
 $4 -91%  $200 -27%
Adjusted EBITDA  $115
 $545
 $106 -8%  $507 -7%









BY SEGMENT 4Q % of Total Full Year % of Total 4Q % of Total Full Year % of Total









Americas  37 48%  172 49%  39 49%  176 50%
Europe  19 25%  84 24%  19 24%  85 24%
MEA  8 10%  38 11%  9 11%  38 11%
Asia Pacific  13 17%  55 16%  13 16%  56 16%
TOTAL  77 100%  349 100%  80 100%  355 100%

Gordon Wilson also reported:
“2011 financial results were in line with expectations. Total transaction value for air travel and hotel sales was 6% higher at $83 billion, and we launched and deployed four significant, innovative new products designed around our new technology platform.
“We are making excellent progress on our strategic plan, delivering the broadest possible travel content for suppliers and travel agency customers to buy, sell and promote.”
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