Southlake, TX, USA, May 9, 2017 – Global travel technology leader Sabre Corporation (NASDAQ: SABR) reported its first quarter 2017 financial results this week.
Sabre president and CEO Sean Menke said Sabre got off to a solid start in the first quarter, with stronger than expected revenue growth. “The macro global travel environment was supportive of growth in travel, and helped drive strong bookings, passengers boarded and hotel transaction growth across our businesses in the quarter,” said Menke.
Global highlights as follows:
- First quarter consolidated revenue increased 6.5% to $915.4 million, compared to $859.5 million the year prior.
- Airline and Hospitality Solutions revenue grew 8.2% to $258.0 million compared to $238.4 million for the same period in 2016. This was supported by 7.1% growth in passengers boarded and a strong increase in hotel transactions.
- Travel Network revenue increased 6.1% to $663.5 million, compared to $625.5 million for the same period in 2016, supported by robust bookings in all major regions of the world
Regional and business highlights:
- Travel Network global bookings increased 5.8% in the quarter, driven by 9.6% growth in Asia-Pacific, 8.6% growth in EMEA, and 3.2% growth in North America. Bookings increased 8.4% in Latin America in the quarter, the strongest growth seen in that region since 2013.
- Hospitality Solutions saw several wins including new customer Grand Hotels and an expanded agreement with Two Roads Hospitality. Successful CRS implementations included Oak Hotels and Resorts and Hospitality International.
- Travel Network signed its first-ever full content agreement with Hertz rental cars, and renewed Corporate Travel Management (CTM), to a new long-term agreement in APAC. CTM is a fast-growing global agency that is leveraging a suite of offerings to support the continued growth of their business, including making use of Sabre Red API’s, as well as broad adoption of GetThere, Sabre Virtual Payments and Traveler Security and Automated Exchanges.
- Airline Solutions also had a number of new wins, including the SabreSonic passenger reservation win at PAWA Dominicana, a Caribbean carrier. LATAM Airlines also signed up for Sabre’s data-driven platform, Intelligence Exchange, while Thai Lion and Malaysia’s Malindo Airlines completed the implementation of Movement Manager.
Menke highlighted the importance of key products, such as its new Sabre Red Workspace, to meeting the future needs of airlines and agencies. “The New Sabre Red Workspace is an important component of our distribution offering. Our customers want to take a more holistic view of distribution going forward, with the ability to leverage all sales channels to optimize their revenues, networks, and customer experiences. As carriers look to personalize and customize their offerings, they need to bring together insights from the direct and indirect channels to have a keener point of view of the customer. As a leading provider of PSS systems and GDS technology, we have a unique position to enable this shift and deliver capabilities and insights from across all points of sale,” he said.
Menke also noted Sabre’s increasing investments in its technology infrastructure. “From 2013 through 2016, we increased overall annual technology spending from $762 million to nearly $1 billion. This investment drove innovation and supported the evolution of our technology architecture and platform solutions to take advantage of more efficient, stable and secure solutions. We are also migrating and re-architecting our shopping and booking systems, to evolve with changing business models around increased consumer and industry shopping trends.”
Sabre Corporation is the leading technology provider to the global travel industry. Sabre’s software, data, mobile and distribution solutions are used by hundreds of airlines and thousands of hotel properties to manage critical operations, including passenger and guest reservations, revenue management, flight, network and crew management. Sabre also operates a leading global travel marketplace, which processes more than US$120 billion of global travel spend annually by connecting travel buyers and suppliers. Headquartered in Southlake, Texas, USA, Sabre serves customers in more than 160 countries around the world.
Certain statements herein are forward-looking statements about trends, future events, uncertainties and our plans and expectations of what may happen in the future. Any statements that are not historical or current facts are forward-looking statements. In many cases, you can identify forward-looking statements by terms such as “guidance,” “expect,” “outlook,” “estimate,” “project,” “believe,” “will,” “anticipate,” “may,” “should,” “would,” “intend,” “potential” or the negative of these terms or other comparable terminology. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Sabre’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. The potential risks and uncertainties include, among others, dependency on transaction volumes in the global travel industry, particularly air travel transaction volumes, exposure to pricing pressure in the Travel Network business, the implementation and effects of new or renewed agreements, travel suppliers’ usage of alternative distribution models, maintenance of the integrity of our systems and infrastructure and the effect of any security breaches, competition in the travel distribution market and solutions markets, failure to adapt to technological developments, dependence on maintaining and renewing contracts with customers and other counterparties and collecting amounts due to us under these agreements changes affecting travel supplier customers, use of third-party distributor partners, dependence on relationships with travel buyers, adverse global and regional economic and political conditions, including, but not limited to, economic conditions in countries or regions with traditionally high levels of exports to China or that have commodities-based economies and the effect of “Brexit” and uncertainty due to related negotiations, risks arising from global operations, reliance on third parties to provide information technology services, the financial and business effects of acquisitions, including integration of these acquisitions, our ability to recruit, train and retain employees, including our key executive officers and technical employees and the effects of litigation. More information about potential risks and uncertainties that could affect our business and results of operations is included in the “Risk Factors” and “Forward-Looking Statements” sections in our Annual Report on Form 10-K filed with the SEC on February 17, 2017, the “Risk Factors” section in our Quarterly Report on Form 10-Q filed with the SEC on May 2, 2017, and in our other filings with the SEC. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, outlook, guidance, results, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. Unless required by law, Sabre undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.