Downturn hits Q4 results
Sabre Holdings has reported a 29% fall in profits and a net loss of $319m (€251.7m) for the fourth quarter 2008.
The Texas-based parent company of Travelocity, Sabre Travel Network and Sabre Airline Solutions blamed a "challenging economic environment" for the year-on-year slump.
Full year results showed earnings before interest, taxes, depreciation and amortization (EBITDA) as "flat" at $578m (€456m) while overall net loss was $320m (€252.4m).
In 2007, Sabre recorded a net loss of $84m (€84m).
Sabre said its 2008 loss included a $382m non-cash charge "for the impairment of goodwill and intangible assets related to acquisitions."
Remaining optimistic, Jeffrey Jackson, Sabre's cfo, said a flat year-on-year EBITDA was due to a strong portfolio and ongoing cost reductions.
"Like many other companies, we recorded an impairment charge in the fourth quarter of last year," he said.
"It is important to note that this does not impact our cash situation or our operations and this was actually a relatively small percentage of our balance sheet.
"Despite the challenging economic climate, we remain committed to investing for the long-term to meet the needs of our customers."
Revenue for full-year 2008 also remained flat at $2.9bn (€2.3bn). Revenue for the fourth quarter was $603m (€475.7m), down 10% compared to 2007.
Gross profit for the year was $1.27bn (€1.0bn) up from $1.21bn (€955m) in 2007. This was offset by a $1.37bn (€1.1bn) in total operating expenses, resulting in an operating loss of $100m (€78.9m).
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