SOUTHLAKE, Texas -- The "major shocks" of the Iraq conflict and
SARS contributed to Sabre's revenue dipping and its net earnings
plummeting in the second quarter, although chief executive William
Hannigan said the company saw "a fairly healthy rebound" in the
latter stages of the June 30 quarter.
The travel technology company's second-quarter revenue decreased
5.5% to $507 million compared with the year-ago quarter; net
earnings fell 90% to $6.8 million or $0.05 cents per share on a
GAAP basis.
Some $41 million in one-time charges -- to refinance company
headquarters, for stock compensation and amortizing tangible
assets, and to reverse a restructuring charge -- fed into the
earnings decline.
Regarding Sabre's agency channel, Sabre Travel Network revenue
declined 9.9% to $379 million; gross bookings fell 16.2% to 89
million.
Travelocity -- and its cruise, vacation, last-minute and
merchant hotel business -- was a bright spot. Revenue increased
19.5% to $91 million. Revenue from cruise, vacation and last-minute
segments climbed 74% compared with second-quarter 2002 and 13%
compared with first-quarter-2003.
Revenue from Travelocity's merchant hotel program, launched at
the beginning of the year, grew 81% compared with the year-earlier
period, with hotel revenue as a whole climbing 34%.
Sabre's corporate channel, GetThere, saw revenue decrease 6.3%
in the second quarter to $12 million.
Sabre, meanwhile, projected that for 2003, Sabre Travel Network
revenue will decline 6% on a GAAP basis.
For the company as a whole, Sabre envisions revenue ranging from
a 2% decline to 3% growth on a GAAP basis for the year.