Sabre is still working
with regulatory authorities to gain approval for its planned acquisition of Farelogix.
During the company's Q2 earnings call Thursday, CEO Sean
Menke addressed the acquisition, which was announced last November. Sabre is
looking to Farelogix to boost its work on IATA's New Distribution Capability.
"We are continuing to engage with the U.S. Department
of Justice under a second request, as well as the U.K. Competition and Markets
Authority, to communicate the significant customer benefits that we believe
will arise from the deal," Menke said.
Menke also addressed the recent leadership change
at competitor Travelport, which went private after being acquired earlier this
year. Former CEO Gordon Wilson stepped down from his post last month, and Greg
Webb was named CEO. Webb was a longtime executive at Sabre.
"I think we, like a number of groups, are waiting to
see what the direction of the new ownership and new leadership is going to be,"
Menke said of Travelport. "But … we're running our own race. We feel very
good about what we are doing. The customers are responding to what we're doing
in the marketplace."
Menke said Sabre Travel Network's recent share growth is
evidence of that.
In the second quarter, Sabre CFO Doug Barnett said global
booking share increased to 38.6%. Travel Network's revenue increased 1% to $725
million. Sabre expanded its strategic agreement with CWT (No. 5 on Travel
Weekly's 2019 Power List) in the quarter.
In North America, Sabre has over 80% market share with large
travel management companies, Barnett said. North American bookings grew 8% in
In the second quarter, Sabre revenue increased 1.6% to $1
billion, driven by revenue increases in its Travel Network, Airline Solutions
and Hospitality Solutions businesses.
Net income fell from $92.2 million in the second quarter of
2018 to $27.8 million this past quarter, driven by a $12.1 million increase in
income taxes, increased technology expenses, a decline in technology
capitalized expenditures, $8.9 million in acquisition-related costs and "modest
growth" in Travel Network incentive expense per booking.
For the full year 2019, Sabre still expects revenue growth
of 3-5%. It raised guidance for operating income, now expecting $495-$535
million. It also raised guidance for net income, now expecting $250-$290