Travelport Worldwide Limited (TVPT) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $5.77 million, or $ 0.05 a share in the quarter, against a net profit of $5.46 million, or $0.04 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $28.26 million, or $0.23 a share compared with $27.19 million or $0.22 a share, a year ago. Revenue during the quarter went up marginally by 1.98 percent to $545.43 million from $534.85 million in the previous year period. Gross margin for the quarter contracted 240 basis points over the previous year period to 37.70 percent. Total expenses were 96.20 percent of quarterly revenues, up from 92.61 percent for the same period last year. That has resulted in a contraction of 359 basis points in operating margin to 3.80 percent.
Operating income for the quarter was $20.75 million, compared with $39.54 million in the previous year period.
However, the adjusted operating income for the quarter stood at $73.88 million compared to $70.03 million in the prior year period. At the same time, adjusted operating margin improved 45 basis points in the quarter to 13.55 percent from 13.09 percent in the last year period.
Gordon Wilson, President and CEO of Travelport, commented:“In 2016, Travelport delivered its highest level of net revenue and Adjusted EBITDA growth over the last five years, as we continued to execute against our strategic objectives. We achieved consistently strong growth in International regions and realized positive momentum in the United States, where we grew our reported segments by 3% during the fourth quarter. Our Travel Commerce Platform continues to expand, with Beyond Air growing by 18%, driven by our leading hospitality content and mobile solutions, as well as the ongoing strength of our commercial payments business, eNett, which grew net revenue by 64% in 2016.
For fiscal year 2017, Travelport Worldwide LTD expects revenue to be in the range of $2,425 million to $2,475 million. The company expects adjusted net income to be in the range of $165 million to $175 million and its adjusted diluted earnings per share to be in the range of $1.29 to $1.37.
Operating cash flow improves
Travelport Worldwide Limited has generated cash of $299.02 million from operating activities during the year, up 14.03 percent or $36.80 million, when compared with the last year. The company has spent $122.47 million cash to meet investing activities during the year as against cash outgo of $166.31 million in the last year.
The company has spent $190.75 million cash to carry out financing activities during the year as against cash outgo of $78.04 million in the last year period.
Cash and cash equivalents stood at $139.94 million as on Dec. 31, 2016, down 9.62 percent or $14.90 million from $154.84 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Travelport Worldwide Limited was negative $159.09 million on Dec. 31, 2016 compared with negative $114 million on Dec. 31, 2015. Current ratio was at 0.74 as on Dec. 31, 2016, down from 0.80 on Dec. 31, 2015.
Days sales outstanding were almost stable at 18 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 8 days for the quarter from 11 for the same period last year.
Debt comes down marginally
Travelport Worldwide Limited has recorded a decline in total debt over the last one year. It stood at $2,344.77 million as on Dec. 31, 2016, down 3.79 percent or $92.43 million from $2,437.20 million on Dec. 31, 2015. Total debt was 82.74 percent of total assets as on Dec. 31, 2016, compared with 83.21 percent on Dec. 31, 2015. Interest coverage ratio deteriorated to 0.96 for the quarter from 1.30 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
