Last updated: 04:00 PM ET, Tue August 04 2015

Sabre Unveils Second Quarter 2015 Results

Travel Technology | Sabre Travel Network | Ryan Rudnansky | August 04, 2015

Sabre Unveils Second Quarter 2015 Results

Travel technology provider Sabre Corporation released its financial results for the second quarter of 2015 on Tuesday, reporting increases in several major performance metrics.

Revenue for Sabre increased 9.4 percent to just over $707 million, compared to the second quarter of 2014.

Adjusted EBITDA also increased by 6.1 percent to $227.6 million.

Sabre’s overall metrics were helped by increases in revenue and adjusted EBITDA for both Sabre’s Airline and Hospitality Solutions and Sabre Travel Network, a business-to-business (B2B) travel marketplace that primarily consists of its global distribution system (GDS) and GDS-related solutions.

Revenue and adjusted EBIDTA increased for Sabre’s Airline and Hospitality Solutions by 16.1 percent and 29.5 percent, respectively. Revenue growth was attributed to a 5.9 percent increase in airline passengers boarded through SabreSonic, growth across new solutions and improvement in Sabre Hospitality Solutions, according to Sabre’s quarterly report. Growth in adjusted EBITDA was due to “strong revenue growth, excellent execution and technology platform scale benefits.”

In Airline Solutions, LATAM Airlines Group, the largest airline in Latin America, inked an agreement to use SabreSonic for all of its airlines.

Revenue and adjusted EBITA for Sabre Travel Network increased 7 percent and 4 percent, respectively. Total bookings across all regions increased by 8.7 percent, while bookings in North America increased by 6.9 percent.

Sabre’s full acquisition of Abacus International, the leading GDS in the Asia-Pacific region, in July was also big for the company (Sabre had previously owned 35 percent of Abacus). As a result of the Abacus deal, 11 Asian airlines previously affiliated with Abacus signed long-term distribution agreements with Sabre.

“In the second quarter, we continued to perform very well financially, operationally and in delivering new product innovation, capped off with the strategic Abacus acquisition in Asia-Pacific. We are well positioned as we look ahead to the coming years,” said Tom Klein, Sabre president and CEO. “Our performance has been fueled by our continued innovation for, and commitment to, our customers. Our momentum underpins our confidence to increase our full-year guidance.”

For the quarter, Sabre reported income from continuing operations of $0.12 per share and Adjusted Net Income from continuing operations (Adjusted EPS) of $0.27 per share.

Sabre expects full-year revenue of between $2.95 billion and $2.98 billion. Adjusted EBITDA for 2015 is expected to be between $930 million and $945 million.

In Airline and Hospitality Solutions, Sabre continues to expect 2015 revenue growth of between 9 percent and 11 percent. Passengers boarded are expected to increase approximately 10 percent in 2015, including strong growth in the fourth quarter related to the American Airlines implementation.

In Travel Network, first half performance and continued share gains results in increased expectations for 2015 growth, augmented by the earlier than previously forecast close of the Abacus acquisition. Sabre now expects 2015 Travel Network revenue growth of 13 percent or more, driven by bookings growth of approximately 17 percent. Excluding Abacus, Sabre now expects Travel Network revenue growth of greater than 5 percent on bookings growth of approximately 6 percent.


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