Global Business Travel Group Inc (GBTG, Financial) released its financial results for the third quarter ended September 30, 2023, on November 7, 2023. The company reported strong revenue and Adjusted EBITDA growth of 17% and 135% respectively, compared to Q3 2022. Cash provided by operating activities totaled $135 million and Free Cash Flow totaled $107 million in the quarter. The company also lowered its leverage ratio to 2.7x, which will result in reduced interest rates beginning in Q4 2023.
Financial Performance Highlights
GBTG's revenue for Q3 2023 was $571 million, an increase of $83 million or 17% compared to the same period in 2022. The company's Travel Revenue increased by $68 million or 17%, primarily due to growth in Total Transaction Value driven by continued growth in business travel and an improvement in yield driven by stronger international mix as recovery momentum has continued and the company's focus on revenue optimization.
Adjusted EBITDA for Q3 2023 was $95 million, an increase of $54 million or 135% compared to the same period in 2022. The company's strong revenue growth and focus on cost savings resulted in an Adjusted EBITDA margin of 17%, up 9ppt versus the same period in 2022.
Balance Sheet and Cash Flow Statement
As of September 30, 2023, GBTG's total debt, net of unamortized debt discount and debt issuance cost was $1,359 million, compared to $1,222 million as of December 31, 2022. Net Debt was $927 million as of September 30, 2023, compared to Net Debt of $919 million as of December 31, 2022. The company's leverage ratio was 2.7x as of September 30, 2023. The ending cash balance was $432 million, compared to $303 million as of December 31, 2022.
Free Cash Flow for Q3 2023 totaled $107 million, an improvement of $219 million versus the same period in 2022, due to the increase in net cash provided by operating activities, partially offset by increased use of cash for the purchase of property and equipment.
Full-Year 2023 Guidance
GBTG's CFO, Karen Williams, stated that the company now expects to be at the higher end of its revenue guidance range and closer to the midpoint of its Adjusted EBITDA guidance range for the full year 2023. Importantly, the company now expects to deliver positive Free Cash Flow for full-year 2023, ahead of previous expectations.
Explore the complete 8-K earnings release (here) from Global Business Travel Group Inc for further details.
