Sabre Corporation (SABR) has reported an 81.03 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $24.56 million, or $0.09 a share in the quarter, compared with $129.44 million, or $0.46 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $76.88 million, or $0.27 a share compared with $76.19 million or $0.27 a share, a year ago.

Revenue during the quarter grew 9.38 percent to $829.62 million from $758.46 million in the previous year period. Gross margin for the quarter contracted 387 basis points over the previous year period to 29.68 percent. Total expenses were 93.25 percent of quarterly revenues, up from 85.58 percent for the same period last year. That has resulted in a contraction of 768 basis points in operating margin to 6.75 percent.

Operating income for the quarter was $55.96 million, compared with $109.40 million in the previous year period.

However, the adjusted operating income for the quarter stood at $163.29 million compared to $152.04 million in the prior year period. At the same time, adjusted operating margin contracted 36 basis points in the quarter to 19.68 percent from 20.05 percent in the last year period.

"In 2016, we delivered a year of strong growth across all of our businesses," said Sean Menke, Sabre president and chief executive officer. "Travel Network delivered key agency conversions and increased global share. Airline and Hospitality Solutions executed key implementations and surpassed the billion dollar revenue benchmark for the first time resulting in strong overall revenue, adjusted profit and cash flow growth. "We expect 2017 to be a year of growth, but also a year of investment. In 2017, we expect strong growth in Travel Network underpinned by a supportive macro-environment, the rollout of the new Sabre Red Workspace and agency conversions."

For the fiscal year 2017, Sabre Corporation expects revenue to be in the range of $3,540 million to $3,620 million. The company adjusted net income to be in the range of $370 million to $410 million. It projects diluted earnings per share to be in the range of $1.31 to $1.45 on adjusted basis.

The company has spent $445.81 million cash to meet investing activities during the year as against cash outgo of $729.04 million in the last year.

The company has spent $190.02 million cash to carry out financing activities during the year as against cash inflow of $93.14 million in the last year period.

Cash and cash equivalents stood at $364.11 million as on Dec. 31, 2016, up 13.38 percent or $42.98 million from $321.13 million on Dec. 31, 2015.

Working capital remains negative

Working capital of Sabre Corporation was negative $312.98 million on Dec. 31, 2016 compared with negative $222.40 million on Dec. 31, 2015. Current ratio was at 0.73 as on Dec. 31, 2016, down from 0.78 on Dec. 31, 2015.

Days sales outstanding were almost stable at 22 days for the quarter, when compared with the last year period.

At the same time, days payable outstanding was almost stable at 13 days for the quarter, when compared with the previous year period.