Orbitz Worldwide Reports Second Quarter ResultsAugust 9, 2012 By: Newswire Travel Agent
Online giant Orbitz Worldwide, Inc. announced results for the second quarter and six months ended June 30, 2012. The company reported net income of $4.6 million for the second quarter 2012 compared with net income of $8.9 million for the second quarter 2011. Adjusted EBITDA was $32.1 million for the second quarter 2012.
Gross bookings declined one percent year over year at reported rates. On a constant currency basis, gross bookings were up one percent in the quarter primarily driven by higher vacation package and hotel volume,higher air fares and a shift in air carrier mix, partially offset by lower air volume.
Net revenue was $201.0 million for the second quarter 2012, relatively flat year over year, Orbitz said. On a constant currency basis, net revenue was up two percent in the quarter due primarily to higher vacation package and hotel volume, higher net revenue per airline ticket and higher advertising revenue, partially offset by lower air volume and lower revenue from travel insurance and hosting.
Hotel net revenue, including hotels booked on a standalone basis and as part of a vacation package, represented 38 percent of the company's total net revenue for the trailing twelve months ended June 30, 2012, up from 36 percent for the trailing twelve months ended June 30, 2011.
“Despite a challenging economic environment in Europe in particular, we grew room nights 3 percent, consistent with the first quarter, led by 28 percent growth at ebookers. Our U.S. distribution business grew room nights 19 percent, ahead of the planned launch of our American Express Consumer Travel Network partnership in the third quarter. Our outlook for the third quarter and balance of the year is impacted by the global economic uncertainty that intensified during the second quarter and has continued into the third quarter,” said Barney Harford, CEO, Orbitz Worldwide.
“We continue to see very strong growth in mobile as we deliver new mobile apps and services across our global brands. Mobile, defined broadly to include smartphones and tablets, now represents 20 percent of Orbitz.com standalone hotel transactions,” Harford said.
Orbitz Worldwide owns and operates a portfolio of consumer brands that includes Orbitz (www.orbitz.com), CheapTickets (www.cheaptickets.com), ebookers (www.ebookers.com), HotelClub (www.hotelclub.com), RatesToGo (www.ratestogo.com), the Away Network (www.away.com) and corporate travel brand Orbitz for Business (www.orbitzforbusiness.com).