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Orbitz loses US$5.3 million in first quarter of the year

eTN Staff Writer  May 07, 2010

For the first quarter 2010, target="_blank">Orbitz Worldwide, Inc. reported a net loss of US$5.3 million, with a net loss of US$336.2 million for the first quarter 2009, which included a US$331.5 million non-cash goodwill and intangible asset impairment charge. Adjusted EBITDA increased 12 percent year over year to US$30.6 million from US$27.4 million for the first quarter of the prior year.

“Orbitz Worldwide delivered strong Adjusted EBITDA growth of 12 percent in the first quarter. Transaction growth accelerated for the fourth consecutive quarter to 20 percent driven by consumer fee reductions and ongoing operational improvements,” said Barney Harford, president & CEO of Orbitz Worldwide. “Room night growth remained solid at 13 percent, with particular strength coming from ebookers and Orbitz for Business, which grew stayed room nights 80 percent and 26 percent respectively.”

The company is projecting for the second quarter a 3 to 6 percent year over year increase in net revenue; a 20 to 22 percent cost of revenue as a percentage of net revenue, reflecting increased costs associated with higher transaction volume and higher customer service costs as a result of the eruption of the Eyjafjallajökull volcano; and a 10 to 20 percent year over year decrease in Adjusted EBITDA, reflecting a number of factors, the largest of which is an expected year over year increase in marketing expense in the second quarter.

For the full year 2010, the company expects total marketing expense as a percentage of net revenue will approximate 2009 levels, although the 2010 quarterly pattern of marketing expenses will vary from the 2009 pattern. The company also expects that Adjusted EBITDA for the full year 2010 will exceed the full year 2009. The company anticipates annual capital expenditures in the range of US$40 million to US$45 million, consistent with 2009 levels.

Orbitz loses US$5.3 million in first quarter of the year
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