Print
Email
ORBITZ WORLDWIDE INC (OWW) filed Quarterly Report for the period ended 2011-09-30.
Orbitz Worldwide Inc. has a market cap of $284.1 million; its shares were traded at around $2.75 with a P/E ratio of 55 and P/S ratio of 0.4.
This is the annual revenues and earnings per share of OWW over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of OWW.
Highlight of Business Operations:
We recognized net amortization for the unfavorable portion of the Charter Associate Agreements of $0.2 million ($1.9 million was recorded as an increase to net revenue and $1.7 million was recorded as an increase to marketing expense) for the three months ended September 30, 2011 and $0.9 million ($2.2 million was recorded as an increase to net revenue and $1.3 million was recorded as an increase to marketing expense) for three months ended September 30, 2010. We recognized net amortization of $1.1 million ($5.6 million was recorded as increase to net revenue and $4.5 million was recorded as an increase to marketing expense) for the nine months ended September 30, 2011 and $2.7 million ($6.7 million was recorded as an increase to net revenue and $4.0 million was recorded as an increase to marketing expense) for the nine months ended September 30, 2010.Net revenue increased $8.4 million, or 4%, for the three months ended September 30, 2011 compared with the three months ended September 30, 2010, and $14.6 million, or 3%, for the nine months ended September 30, 2011 compared with the nine months ended September 30, 2010.
Domestic air net revenue decreased $4.3 million in the three months ended September 30, 2011 as compared with the three months ended September 30, 2010, driven by a $5.8 million decrease due to lower transaction volume, partially offset by a $1.5 million increase due to higher average net revenue per airline ticket. Domestic air net revenue decreased $13.3 million in the nine months ended September 30, 2011 compared with the nine months ended September 30, 2010, driven by a $20.8 million decrease due to lower transaction volume, partially offset by a $7.5 million increase due to higher average net revenue per airline ticket. The lower domestic transaction volume for the three and nine months ended September 30, 2011 was primarily driven by a decline in transactions for our domestic leisure brands due to actions taken by certain airlines to limit the forward distribution of their fares on meta-search sites, such as Kayak, higher air fares and a fare structure change implemented by a major airline. For the nine months ended September 30, 2011, the decline in transactions was, to a lesser extent, due to the lack of American Airlines content on our Orbitz.com and Orbitz for Business websites through June 1, 2011. We were able to replace much of the American Airlines ticket volume through substitution for other airlines offered on our websites. For the three and nine months ended September 30, 2011, the higher average net revenue per airline ticket was due to a shift in supplier mix towards airlines from which we earn higher commissions, including those with variable commission structures. For the nine months ended September 30, 2011, the higher average net revenue per airline ticket also reflects an increase in the incentive revenue earned per segment processed through Travelport GDSs through June 1, 2011 (see “Letter Agreement” section of Note 13 — Related Party Transactions of the Notes to Condensed Consolidated Financial Statements).
Vacation package. As compared with the three and nine months ended September 30, 2010, net revenue from vacation package bookings increased $2.2 million, or 7%, and $2.5 million, or 3%, for the three and nine months ended September 30, 2011, respectively. Excluding the impact of foreign currency fluctuations, net revenue from vacation package bookings increased $1.6 million and $0.7 million for the three and nine months ended September 30, 2011, respectively, as compared with the three and nine months ended September 30, 2010.
Other net revenue increased $2.7 million, or 3%, for the nine months ended September 30, 2011 compared with the nine months ended September 30, 2010. Excluding the impact of foreign currency fluctuations, other net revenue increased $0.6 million, which was primarily driven by higher car net revenue, partially offset by lower hosting revenue. Car net revenue largely increased due to higher breakage revenue at ebookers. Hosting revenue declined $2.2 million to $2.1 million primarily due to the termination of one of our airline hosting agreements in 2010. In the first quarter of 2011, our remaining airline hosting partner terminated its agreement with us effective July 30, 2011 and, as such, we do not currently expect to generate any material net revenue from hosting services going forward.
Subscribe RSS
