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[Travel News]: Sabre reports a net loss of $266 million for Q1, and will not give guidance at this time

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The following is the [Travel News]: Sabre reports a net loss of $266 million for Q1, and will not give guidance at this time from [Sabre] recommended by TheTourAttraction.com:

Sabre’s first quarter revenue decreased by 50%, and global bookings were down by 55%.

Sabre reported a net loss of $266 million for the quarter. 

First quarter 2021 business overview:

• Bookings environment improved with a 15 percentage point sequential improvement from January to March in Sabre’s net bookings versus 2019, despite the ongoing impact of the COVID-19 pandemic

• Strongest improvement was in North American air bookings and global hotel bookings

• Progressed with NDC initiatives and achieved NDC Level 4 certification as an IT Provider, confirming ability to support full offer and order management capabilities

• Completed migration of Travel Solutions Agency Air Shopping to Google Cloud, first of three technology milestones planned this year

• Advanced other aspects of technology transformation with set up of Google Cloud environments in two out of four global regions for Hospitality Solutions CRS and completed offloads of several compute-heavy mainframe capabilities

• Ended the quarter with cash balance of $1.3 billion

First quarter 2021 summary:

• First quarter revenue totaled $327 million

• Net loss attributable to common stockholders of $266 million and net loss attributable to common stockholders per share of $0.84

• Adjusted EPS totaled ($0.72)

• All metrics were negatively impacted by the COVID-19 pandemic, partially offset by variable cost relief and the effect of cost saving actions

Travel Solutions

First quarter 2021 results (versus prior year):

• Travel Solutions revenue decreased 52% to $289 million due to the unprecedented disruption in travel driven by the COVID-19 pandemic.

• Operating loss totaled $105 million, versus operating loss of $10 million in the first quarter of 2020. The decline in operating income was driven by the reduction in revenue driven by the COVID-19 pandemic, partially offset by lower incentive expenses, a $40 million decrease in the provision for expected credit losses, reduced headcount-related expenses resulting from the effect of cost saving actions and a decline in technology costs.

• Distribution revenue decreased 62% to $152 million due to lower bookings volume and a decline in average booking fee due to a shift in bookings mix.

▪ The booking environment steadily improved over the quarter.

▪ Gross air bookings declined 82%, 77% and 69% in January, February and March versus the same months in 2019, respectively.

▪ Net air bookings declined 81%, 76% and 66% in January, February and March versus the same months in 2019, respectively.

• IT Solutions revenue decreased 36% to $137 million. Reservations revenue decreased 48%, and Commercial and Operations revenue decreased 29%, primarily driven by the impact of the COVID-19 pandemic.

Hospitality Solutions

First quarter 2021 results (versus prior year):

• Hospitality Solutions revenue decreased 29% to $42 million.

• Central reservation system transactions declined 16% to 18 million.

• Operating loss was $14 million, versus operating loss of $16 million in the first quarter of 2020. The increase in operating results was primarily due to decreased depreciation and amortization, a decline in transaction-based costs and reduced headcount-related expenses resulting from the effect of cost saving actions, partially offset by the decline in revenue driven by lower CRS transactions due to the COVID-19 pandemic.

Business Outlook

Given the ongoing magnitude and the uncertainty related to the COVID-19 pandemic and its economic effects, Sabre has not given guidance at this time.

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