Q1 2025 Sabre Corp Earnings Call Transcript
Key Points
- Sabre Corp (SABR) announced the sale of its hospitality solutions business for $1.1 billion, which will be used primarily to pay down debt, improving the company's leverage by nearly a full turn.
- The company reaffirmed its expectations for double-digit distribution bookings growth for the full year 2025, despite a challenging macro environment.
- Sabre Corp (SABR) is experiencing strong momentum in its payments business, with a 30% year-on-year increase in gross spending in the first quarter.
- The company is making significant progress in its strategic priorities, including multi-source content aggregation and distribution expansion, which are expected to drive future growth.
- Sabre Corp (SABR) has a strong pipeline of new business, including recent wins with major airlines and travel management companies, which are expected to contribute to growth in the coming quarters.
- First quarter 2025 air distribution bookings were down 3% year-on-year, impacted by lower group bookings in the APAC region and a pullback in US government and military travel.
- The company adjusted its assumption for full-year 2025 GDS industry growth from flat to nominal to down 1% to 2%, reflecting recent airline traffic softness.
- Revenue in the first quarter was roughly flat year-on-year, with IT Solutions revenue lower by $8 million due to prior demigrations.
- Gross margin decreased 190 basis points in the first quarter versus the prior year, partly due to upfront costs associated with new agency business.
- The sale of the hospitality solutions business will result in the removal of approximately $70 million in adjusted EBITDA for the full year 2025.
Good morning and welcome to the Sabre first quarter 2025 earnings conference call. My name is Rivka, and I'll be your operator. As a reminder, please note today's call is being recorded. I will now turn the call over to the Senior Vice President Investor Relations and Treasurer, Brian Evans. Please go ahead, sir.
Good morning and welcome to our first quarter 2025 earnings call. This morning, we issued an earnings press release which is available on our website at investors.sabre.com. A slide presentation which accompanies today's prepared remarks is also available during this call on the Sabre Investor Relations webpage.
A replay of today's call will be available on our website later this morning. We advise you that our comments contain forward-looking statements that represent our beliefs or expectations about future events, including the timing and effects of the agreement to sell our hospitality solutions business, including pro forma financial information, results
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