GDS Report: Amadeus & Travelport See Gains in Q3

Amadeus increased its profit, and Travelport narrowed its loss in the third quarter.

Amadeus reported a profit of €145 million (about $194.7 million), up nearly 14% from €127.4 million ($171 million) in third quarter 2012. Revenue increased 5.9%, to €766.9 million (about $1 billion).

The company benefited from an increase in its market share to 39.9% worldwide, chief executive officer Luis Maroto said in a call with analysts.

That increase was due largely to Amadeus’ agreement with Expedia, which pushed volume growth in North America to 41% for the first nine months of the year.

Travelport trims losses
Travelport reported a net loss of $27 million for the third quarter, an improvement of $13 million over the same period in 2012.

Travelport’s revenues increased to $511 million, up from $489 million in third quarter 2012.

Chief executive officer Gordon Wilson attributed the increase to “more of the same,” referring to the company’s strategy of growing non-air businesses such as Travelport Rooms and More, its hotel portal, and eNett, its payment solutions joint venture.

Travelport’s “beyond air” initiatives grew 19% year to date and now account for 18% of Travelport’s net revenue.

Results by region
Both Amadeus and Travelport experienced some weakness in Western Europe and the U.S., but that was offset by stronger performance in the Asia Pacific region. Amadeus also performed well in Latin America, while Travelport outperformed the industry in eastern Europe.

Both companies also said that provision for the sale of airlines’ ancillary products and services in new distribution contracts is increasingly common.