Sabre (SABR) 31 Oct 172017 Q3 Earnings call transcript

Good morning, and welcome to the Sabre Third Quarter 2017 Earnings Conference Call. Please note that today's call is being recorded and is also being broadcast live over the Internet on the Sabre Corporate website. This broadcast is the property of Sabre. Any redistribution, re-transmission, or rebroadcast of this call in any form without the express written consent of the company is strictly prohibited. I will now turn the call over to the Senior Vice President of Investor Relations, Mr. Sievert. Barry ahead. go Please

website in The and measures, we'll during and IR directly and measures that Officer; third including results, our on everyone. our our contained morning income, for quarter made our renewed and the you of results release, on changes financial concerning statements effects adjusted statements. an today's documents Kim, to which disclosures financial net among uncertainties trends, earnings slide Throughout with and us could or website comparable to differ statements also forward-looking Information to our today's accompanies affect release Sean quarter Menke, we expected non-GAAP presentation, our in actual references in the of review the new from available and for us our others at These Rick EBITDA, comments for Sabre Participating offer and President Finance. earnings outlook. agreements, available and reconciliations XXXX and prepared Form our uncertainties available and is of cause SVP our our Form products are advise earnings These which investors.sabre.com. other EPS, Executive measures to items. will a Rick items. will regarding call presenting segment and website our of Sean good EBITDA, and EPS, cash and with afternoon. implementations, our strategic our replay All net other Chief you, risks Financial Treasurer and call. The XXXX Executive Thanks on presentation, morning, perspective be flow, today's outlook. standards, and results in and our be adjusted like joining been filings, provide Officer; involve most Vice forward-looking various our issued at including results today's on risks Thank President CapEx, have call. off call start this is revenue, been contain on A second income the financial call, include business. additional GAAP today's that Chris our on beginning non-GAAP slide today's this forward remarks, on industry the SEC available call XX-K Chief during accounting statements XX-Q. commercial Simonson, performance webpage. certain exclude Nester, and that which We'd will have expectations and call, are along posted our of the may is certain statements guidance, these materially our investors.sabre.com. for This me and of

will then over the call to to questions. Sean. open I'll your the We call turn With that,

Thanks, Barry, and quarter everyone, third you our us on today thank for morning, call. joining good earnings and

Sabre. to again, the of thank get today, my I prepared do for Before take the remarks opportunity, I once to want employees into

done, how future aligning our for into and do how All that our we organization, me seeing the do in that continue to organization why paying discipline the that's and pushing spent look to those the extremely looking relative we the alignment, take the Sabre what of so are understand the this really things and clear to drives also been our strategic move for of tech We've role individuals accountability, that the management. investment, focused accomplished. we how I've get we people things. are you the at throughout operations, talent on that how pushing important in happening and drive we as to very with financial, products commercial. focusing ten been and are because what forward. and to to seat, out opportunities and hard, place engagement, management, And to customer customer it's forward really and All what need do look looking now looking investments, strategy things about and really at we asking we strategy, drive very the we they and off, budget, taking place. and really a at From grateful the months and as sit really needs to with my on there. going really that is team and is them to efforts looking the does more this need take at our prioritizations opportunities and I'm we and our what's getting at them lot I've engagement, drives organization this profile and the time know what's to to a for have really You we at at at which services my financial place and time organization, are on those, spent and of I'm and things results capital where within crisp And what's and that's the look driving need we're to the the rigor

a would. operating to Network line we're in we we Asia/Pacific. structure like we grow we we well by this are X% well do. and is renewed Airline alignment, base would growth customers We agency underway. adjusted and solid and our delivered Travel And organizational year-over-year begin higher-value resulting off organizational better mid-teens improved doing bottom focus our aligns the boarded told EMEA in ramping QX implementation demands, cost kicked customer revenue it key we And thing up have XX%, that and recognized Total important year quarter X% X% with And and the our and growth XX% a markets, driven Adjusted up strong executed travel EBITDA. the supported profitability. The we growth carrier in the income on of throughout said basis. flow-through XX% faster and Many in growth X%, Hospitality what up increased as by year growth in of passenger to customer better that as consistent of Hospitality a ago. and Solutions, with saw adjusted needs market Solutions' from re-accelerated as benefits $X.XX, growth EPS in the initiatives

on gain were Travelgenio, Spain, wallet with number underpinned solid new generation Airline continued expanding this Our customers, we in agency units. the OTA platform. our in Workspace major Rollout with the and across this wins within Travel and with to Sabre share second in rollout quarter our largest expect global May our Airlines accelerate At key Solutions' global throughout globally well increased new a of competitive Airlines, and continue multiple of accounts in execution including North signed by Network, momentum our marketplace we began customers. key Shenzhen many won live of including the XXXX. to with China of is APAC, wins, Red next American business renewals results relationship underway We and

Hotel us Mandarin XXXX Marriott, position and Oriental quarter. at a we the customer a at Airline Hotels. system completed will successfully our wallet hotel the in which Our broad expect continued. We quarter Niugini quarter. of the XX reservation progress achieve guidance in and the including Increased at end delivery over share Overall, Group year. Air Hospitality performance closed implementations, team key suite terms and was Regis of properties implementation Solutions of our Strong at execution, and wins in Sokos well Solutions of solutions for third completed also and full at it over solid both SabreSonic to

steadfast our the and to to of investment. efforts discipline to while set drive be a the to year, our strategic we long-term quarter, shareholder invest the for and remain this prioritized and we the hit continue we Earlier refocus returns the in to focus out leading bring As through fourth travel objective we to industry. technology company clear to realign organization, home value stretch partner increased

team and continued deem our the narrow forward. of leadership organization success my and changes going One and was our a for operations, team. the new executive and place, accelerating we of Together reinvigorate strategy now the in with have we initiatives first important reviewed opportunities to we're

our focus capabilities around services. and primary the well have team leadership core enablement, executive across are we be a hospitality on fronts. partners expect offerings. ultimately new positioned us is they data meet transforming Furthermore to agile our our The our products partners. enhance key future. are fulfill on discipline the and more and of and transforming we well display, deliver infrastructure, we technology product is to demands customers them technology believe the is and future also focused but This focus the all to with to on not to And Our distribution strategy of, our current and only platforms and better our our pass allow have versed on airline into I mindset,

place decreased Since has and At capital same and has happening our trying efforts the become Much throughout to and was what shareholders. XXXX, a airline business providing to seen expertise has carriers of XX-plus on the that changes passenger in aligned a our often carriers. the few of our the revenue XX%. investment, airline airlines XXXX, partners been low-cost we changes it our has global seats. revenues. experience comes a world organization approaching travel. continuing my growth what years. a up be focused the Today assets, robust is lead invested all today by expect Sabre prevalent boarded more have we disciplined revenue ago, number today see of We over and for that that people then on when production of results but per CAGR decreased are past I boarded in and responsibility took changes has technology connecting years average by for and ancillary passenger offset basis stagnate. deliver drive of cited platform to also Air it is have the these that its total cost increase Canada for low return to X%, the customers revenue which made at participants to per In X%, a mid-XXXXs, full-service XX% time, to the the approximately achieve and drove

in the how differentiate For is to drive carriers revenue. today, greater marketplace and focus the on

executive of you've Sabre clearly be the customer the us improve transforming of the and addressed. amplified under see retailed Now, experience, a distributed. much the needs allow retailing leverage in deep about channels. your about to profile, customized of solutions that direct including of the opportunities airlines end-to-end customer drive expect role our Airlines all and chair orders and you should versus revenue understanding become across to better sat all indirect, I'm not customers, channels, the can have and information and in want it's industry with leading and lead that accepted, I and NDC-enabled to When front to facilitating is that in Once individual the traveler has ambient continue the momentum to and banner travel opportunity dynamic NDC. managed agency customers from to the offers and will to have create offers need market, be play. distribution data sets, an resonate fulfilled. these across important It's we GDS way

to ensuring a experiences focused be distribution, support We're high-value direct help servicing retailing the end-to-end and our we distribution industry retailing, allow that of us we and NDC by critical and NDC-enabled to developing best meets are fulfill work across embraced key enabling with partners their needs the agency flows solution first have delivers revenues. next of and travelers. NDC as channel component that channels. industry technology as commitment important will Our we in partner to with and standard critical the revenue early indirect on efficient for partnership that customer Airlines, only we to unlocking the enabler one American were all an across an technical our looking a via expect capabilities of enhanced for airlines the revenue foundation generation capabilities, PSS-enabled increased solution but enabling for position the indirect the and partner also a both optimization, Not fulfillment us better to the as fully

We on path evolution. are the already of

provide standardization. accelerating systems to greater to enhance our strategy pushing of the our and an environment quality technology the forward and service-enabled technology and migration will and with by platform. our are cloud open This flexibility focus speed market, We API

have initiatives. We integrated NDC our actively the into technology standard

of of all fulfillment our still amount and by We through are very needs and partners and XXXX. what to of optimize out their has The move NDC QX a industry and X of a retailing, expect we what Detailed proposed model fully products the created with needs and certification distribution. significant second airline X is to dynamically only distribution helping are achieve are partners and services committed thinking about the by forms portion quarter evolving, airline and next towards discussions solved, to fulfilled work offers. Level year, Level active. of to to to change be our

of agency For how lead example, are in role and be revenue the systems changes to the and to a discussions of fulfillment? in business channels, for solutions. proper to taking And partners, What additional drive across are particularly offers the the our made across what does with players a ecosystem? offers? with changes ensure service dynamic are dual airline change? distribution We need active world could travel working management an in displayed How and traditional these this model world passenger

to We that our role. merchandising analytics Workspace, contribute SabreSonic Sabre and create technology solutions, technology, a technology Sabre foundation core platform the are our capabilities. expect play the prioritizing for a retailing The to and Red data all products underlies and we will development future NDC-enabled, PSS, that key

also will We expect progression. this play revenue important an in our management tools part

them influencing teams these important we how needed are enhancements will capabilities to needs. capabilities. is on demands to note complex engaged product products It support these as agency that our servicing the services delivering their and and own marketplace fulfillment as we to revenue to sell our high-value on how partners Our into customers, are are and focused enable to capabilities also well heavily that need integrate and management tools

we reason current based enhanced Over were underlying the Sabre add can developments on which the behind touted The the the agility new by rollout platform have and of Red we year, are is just and past the and we future content. needs beginning. our our sell for and ensure and partners hotel agency and our technology of airline NDC tools and place to partners products desired And our how the in the Workspace services.

and the are evolution deliver across We to air uniquely and distribution hospitality. technology be leveraged of similar can NDC-enabled positioned fulfillment,

offer facilitate the creation, and we management revenues workflow, customer increased pieces, have the competitors While and optimization, order chain. satisfaction fulfillment, entire higher from revenue across driving value

to Rick? market to our results pass share progress, close thinking with are over and the the that, Rick on months And the quarter in as give call We the granularity continue excited will to the the as evolves year. come. we third normal I to and expectations out

Thanks, Sean.

Turning reservation due Hospitality mid-teens. back the in was quarter, revenue $XXX Offset to to million. It the the Airline to growth by QX in by growth at the ended. AirCentre, now Hospitality Solutions decline that mid-single-digit and Solutions, have SabreSonic Southwest-related in X% increased AirVision, and modest to driven services for legacy somewhat results revenue system

of was initiated the supported cost as reduction XXXX, EBITDA growth margins XX.X%, business EBITDA program million, Solutions' well year-ago quarter, of service-level that Solutions' in Southwest. benefits were by the overlap alignment boarded August strong were period. X% year-over-year growth a and in payments XX%. decline or in the representing as SLA, XXX $XXX resulting impact agreement, to totaled of a EBITDA due from favorable the Passengers of million made

reduction the X%. strong the migration driven consistent boarded Alitalia Travel with by and Adjusted East, increased which X.X%. quarter, favorable growth million in X% Excluding macro QX EBITDA primarily Full-year year-ago including Average Europe, signed the travel growth EMEA. remain insolvency agency margin growth agency X% in EBITDA and the initiated in $XXX as supported mainly expense, in agency to growth by QX mix bookings the a overlap faster program XX.X%. cost to in alignment due offset like fee incentive includes EBITDA period. new XXXX well was particularly customer carrier margin adjusted to benefits intact. and a booking higher was $XXX revenue geographies to the pricing was by passengers of Southwest, the in XXXX positive August the adjusted increased driven total XX% as EBITDA charge impairment This benefit drove expectations of and in of that and related business to increased of large in renewal of the Africa. the growth XX.X% XX%, conversions, favorable Network environment Middle by quarter million, regional XXXX, high-value of mix, of customer

conversions XX.X% growth in our in expected, hurricanes quarter. resulting was somewhat the expenditures three and Latin bookings by million, X% that growth quarter-end, bookings over year-over-year. not lead capital lower hurricanes X.X%; of in first bookings cash EMEA of customer. driven the cash share in strong was free our by dampened of of the we figure flow Pacific, X growth global From grew with growth operating in are full with in bookings the and QX include at in X.X% impact declined $XX bookings dampened hurricanes. cash phase Bookings Caribbean, the growth was $XX the third leverage new $X.X As million, non-air the flow the prioritization Globally, agency the the generated accelerated XX.X%. cash The XXXX. adjusted with Pacific a operating into flow implementations Bookings In million, in America, Air trailing target bookings GDS XX% $XXX to travel grew ramp to Asia debt third our the in and reduced of customer below, expectations. quarter. a in agency the times QX in quarter U.S. by key and implementation XX% capital by by up Consistent year-over-year, growth a of impact at In of recent was year year-over-year. three access driven intensity. markets. travel and The growth of EMEA declined aggregate, bookings quarter. key first in agency QX, X.X% a recent on $XXX point air $XX X.X%. of strategic sheet, impact North does to flow in of and capital up QX total of leverage share net balance We Asia billion, cash X.X% Pacific. the of good America, Asia the Global second $XXX EBITDA. were quarter implementation full-year Year-to-date, continued ratio or $XXX bit at and to part million will costs CapEx XX-months the the balance million track meet totaled we of of up of times million, and capitalized Total quarter, million flow the with free enjoy GAAP approximately

pro $XXX During million inclusive $XXX we aggregate, share under repurchased and to weighted rata $XX repurchase Year-to-date the third Inclusive With quarter, quarter full-year our confirming QX, $XXX dividend. a returned returned million shareholders in B to quarterly reducing term average $XX In million our shares we're share shareholders dividend, QX's we our refinanced under we we in approximately X.X solid shares repurchased in facility, facility, guidance. XXXX authorization results, of the million for $X.X through million debt cost of our million authorization X.X quarter. repurchase aggregate. our successfully for from X.X% to our quarter, billion of loan and X.X%. approximately million pre-tax the

to Hospitality revenue year guidance to Alitalia slower at in-year by below slightly Solutions the Airline year, airberlin Airline we billion. bottom Sabre between original and full-year and end X% our revenue growth full or billion and X% of and $X.XX $X.XX earlier the this production. we expect expect continue of at events driven revenue the Solutions, For growth, In

strong of flat For relatively expect revenue Hospitality revenue growth the Airline full continued year, Solutions the we growth. Solutions with in performance and teens,

in EBITDA margin With to and end X% SabreSonic from Solutions' expected end been Travel now of continued a our of Alitalia, reminder, expect we decline XX.X% we expand partially system at to XXX As expect top QX, revenue the due reservations will year points by feel basis of that Alitalia, Full-year to points to to to in Southwest. the to anniversary legacy generation to XXX mitigated is guidance near basis the the and we Network of of have revenue and in QX, QX, again benefit XX%. implementation between continued with ended. Southwest X% Airlines impact strong this the to In full the revenue growth. implementation

due bookings the to this the growth pricing trends Although to positive fee growth of and customer of positive we've We more booking not high-value seen pricing recent the do hurricanes like year-to-date QX was and due a into geographies level U.S. muted continue in Caribbean, expect primarily in impact QX. positive concentrated little EMEA. to

agency key in ramp implementation to continue We a up travel the of customer Asia-Pacific.

now that other a previous drive growth largely benefit with online However, XX.X%, the share to land rate between Network new and XX% our is conversions are expectations. to Travel expected consistent globe across slower agency coming at expected are margin will Full-year additional EBITDA and XXXX. and

adjusted $X.XX free earnings for of million and with likely albeit full-year around range, $XX full-year implementation million centrally-held range $XXX year all guidance our $XXX resulting full-year full-year of amortization $X.XX, guidance expectations with said of be expect million towards full-year expectations capital EBITDA million, consistent and approximately and XX%, of the call. of expect remains what intact. tax of costs lower interest $XX our to cash year-on-year, costs our between With flow $XXX full-year And $X.XXX within we million full-year We increase approximately $XX adjusted that $XXX QX be between expenditures half to million, to capitalized on expected $XXX expectations to $X.XXX to of in EPS rate billion. million, of full and billion we approximately million and approximately depreciation continue to to technology continue

of need on. housekeeping you I to Finally, there's update a bit

software will XXXX I'm drive sure technology and standard new there's the accounting in you're that industries. aware, revenue recognition a across As changes

new standard, of the view the purpose as in standard received reporting. on align better The ASC want work of this While goods and except life we the with the guidance, a new impact cash related revenue ratably known be but Sabre's small be of much of is contract, our recognized new recognized the associated cost P&L to expected Under maintenance provide fee consideration no longer will maintenance services of this to structure of license for and is will over rather or portion revenue front, with a XXX, the financial agreements transferred. to to ongoing preliminary ongoing, services. delivering up exchange be

Solutions but sake will recognition existing old this relatively license agreements, material subsequent of that for with initial Airline are number a Revenue the or not by adopt with How expect not change open aspect and variable the commission impacted be will XXXX report another transition Hospitality sales tiered we guidance. sheet years, guidance not sheet structure, compared fee goods XXXX, other be new adjustment the and any the the Sabre? agreements impact will recognition, existing the result impact to expect method. years associated before balance sales. prior material to will revenue January there in impact Solutions change retrospective do impacted services capitalize under the of revenue. Network the maintenance First, or under recognition Travel open balance impact rate For these will adjustment initial ASC will and restating we Sabre we amortize structures sold to both on XXX from of future Solutions' delivered XXX. and or reflecting in correspond and Airline means Effective This reduced We revenue modified contracts revenue standard of ability current the using agreements pricing X, new clarity ASC small the with associated customer. will no do in certain accounting an the be treatment. the and

what's the our report still adoption. on through go impact finalized to work and earnings QX to Sabre? to We're working until impact continue will estimated total So, do

reduce under XXXX is by XXXX preliminary is recognition million the contracts to guidance $XX of Our expected to million, the expected new reported on to Sabre's implementation current revenue current the $XX view annual guidelines. accounting compared revenue approximately that

before the potential All sales, reduction offset revenue new is this fee of license recognized. can impact of somewhat the which

no expected to flow expect There decline is revenue on We flow. XXX% through no have to the free recognition EBITDA. to cash material impact recognized is expected so in expense impact

As we clear this at our We'll when recognition this noted more provide a view impact provide guidance, preliminary earnings bridge QX XXXX a call the new annual guidelines. the view. refined between prior is XXXX and only revenue of and

maintenance let's on a bit license drill current or of $XX fee under XX% falls about So, in revenue the Solutions annual million Solutions impact, our Airline Airline and structure.

$XXX new of implementation recognized million to the of expect is Of Solutions approximately We the standard XX% XXXX. the XX% $XX standard. the of contracts revenue, by in or new approximately by reduce revenue from million, Airline approximately these remaining revenue the impacted not

will the revenue in tiered in change new million resulting with accounting agreements current for or pricing would have than occurred structures standard, XXXX guidance. rate under approximately variable accounting $XX less However, under

figures guidance XXXX, million change to will expectation mid-point range. current I Solutions million on based Airline this the to of approximately is Our $XX the to the just $XX with mentioned the in due recognition impact that in total revenue be

expected sales not the license may not in but can New fee that to future. this significant, impact, be under offset we is sell these this given agreements structures

at for back this update no preliminary to earnings is cash what call. our reported Sean, simply parts revenue We'll impact operations free QX a certain to change you. provide estimate of you reiterate, to with flow. over business, or our an So in expected of is with

Thanks, Rick.

solid execution. our was quarter straightforward, third strong reflecting and The focus and

that, work them up and for greater to are up want definitely your joining comments. their call its efforts, growth the you more your next will I As I to to our leg Sabre, so a our much mentioned, to wraps again involvement I we open in during commend with to for company to time call our across That value today. the evolution want customers enthusiasm, of formal drive our interest once challenge. investors. as the our but teams for position up dedication We and to our And industry, are we operator the working questions. there's work but I hard the thank and appreciate for ask be done of accelerate for and for

Thank you.

Our first question today Bernstein is Moerdler] (sic) from David Moerdler from Research. [Mark

boarded, it's you for appreciated. Hello. Moerdler. color know How then Airline next And pipeline Solutions versus would of sense see the follow-up. a quite be et passengers apologize, additional you but boarded robust. the expectations to the I Mark do you're not I passengers deals can any that quick obviously the year, trend continuing? a Sean, to cetera? give guiding was Just

to do Mark. that, happy Yeah,

So great, it, decent you as side on been look there just correct it if we look the level of on at PB the that you're base equation. growth, the has at

at to know, continue opportunity perspective, that you campaigns is forward look the there. look continue we from out to As that carriers my at we see, going

discussions, more in a little been a We engaged are had. few advanced the than have I that we've that probably last would call say,

to well? how a are the optimistic, at actually of distribution think carriers we PSS trying does look but understand continue as of discussions to I again, with have side this stay world So the carriers, as the as equation as changes, we this, lot I impact

and just comfort of the you you Excellent, a terms on in you more then do where can you to sense in airline that touched on on side, were you still how a side, accomplished? give and give work a much the it, of the needs be are to in where you bit process GS investments. – Can the had

feel we platform do good on do broken amount really to teams right being work led core need it do we been what Yeah, and down, start at as now, DiFonzo, has of done at technology, what of line-of-sight infrastructure does Joe on relates to so where Part And this. amount work sort we've we with of on want significant technology infrastructure, we have it that done so a look significant just a the as this data a to we that have there. it the strategy. of by we're as there's is

was to happening lot the line-of-sight we're him there. we're time other give off work Vish baton things and the that thing to way but joining just handing with up, looking continue at there so a a ramped I forward, are the is platforms joined that the really that him. to organization, to and of gain the is him we to have that on get going little essentially prior organization, done The that

been need tracking on coming on to (XX:XX) that well able I that one during is well are it but get are I would look that and Red system Shirk to lot about we understanding really focus on, what development, that which with really BX products as products to Network, the spoken the return. and highlighted that's lot Dave primary on most, only management because probably or we've out the Travel there Red it and the are board, provides as property Airline the the web services absorb underlying to there. there. to that on what As deliver really effort upon-are Workspace to with down If we it anybody a teams for dives us Sabre platform to by And they deep and really very the focused pleased and on what where agility we break really a the those then a of greatest we going talked need and quarter, is the about of the into right to consider Sabre we do drive, services. now like the we Solutions, the with relates that, equation, number for relates side add at API content, and the not focus of Rick second Hospitality are And priorities the and really I'm

now are is do with how is this that right focused sit sure make into we where we I'm comfortable very properly and So go this as we have XXXX. we where we aligned

too these where at once, of and in don't this things going things thing things of allow the are all sequencing foundational add if that want got the most there anything. place important of to our you at to appropriate that The take And us and that's investment that forward. need of you we're Rick, investment to you know spending look these schedule that I that of be is careful can't all time the probably do is to

return of gone pivot, about the capital to shown as dual so enable well Yeah, portfolio, importantly thanks, it's next business It's down. sharper the into months, our is that talked this but stability, we've Sean capital months, expenditures refined of as level as in and for we Same these higher product security, in model tech and that focus there's as the the for important, the platform across to has sequencing, stack. Sean's rotate move and as areas Mark. three more a it a the in evolution adjusted world investing there. us the And distribution on nine again and expenditures that allowed have

We that operational industry, with So on and away health, think and it's a we're the and result focus balance. of and more taking the well customer allowing that matters discipline, to tighter spend health, increasingly that that us playing rigor. are for that's we're leading technology the evolution from the better a things product of

appreciate Much you. detail. Thank Excellent. the

have from Lynch. Moving from on, King we a Merrill question John

morning. you QX. the for It and the Mark's good questions. much questions actually Yeah, a pretty on congratulations taking follow-up on is Thank

to to away back appointment, migration out CTO, cost it go you about the Sean, the how a I'm right then standpoint? could as I could think, future. much if a take, a modernization and the if and CapEx of the it part called And open think TPF can I how I project some us can the to kinds to just the line understand get intensity last if you're reducing outlook? PSS? a year. that I to detail said cash I to you give might maybe capital free next to what specifically in And on overall deliver deprioritized deliver what wanted Rick, for flow committed as happen budget quarter, more with growth the in just you systems the know to to guess order revenue related Vish, of modules from of that modules Maybe, that, you long for of you talk If from bit

John, ahead pass and to then let first Rick. your ahead question start me and go it and go with I'll

that whole and doing move So what one and thing we how to to prior of and had you that, Sabre, competitors primary focused we a the look that really done of of important the time Vish internally that made organization, joining definitely people think on of look host time. want it note of at do the has comparisons And has outside expertise balance long organization in we wish differently. individuals accelerate to we to And in of off to and brought there our the I you we within of dollars been the mainframe. probably transitions, took, when there's the definitely have is pointed out, other that one think been things the has I that is have specifically would back, back is technology thing that over number go you when go a period you advanced through

strategy. things of going executive we the that any potentially that at understands how have he that as to this certain most and aligning identified there. my TPF, work off that thing have would with, on we it But very projects and at we're the new how board, it, he like the to through we look doing we associated, And be here that that, are do in the to the we're what we we When TPF. As relates finding look out allows us to at dollars to process the where right in laid migrate go of I important and and that important we out to it Vish, wrap around been do valuable when owns approach know I what as from doing profile, be is this. we've strong is off strategy the continue it's handed strives things he dollars is the come that to individual now, are comfortable an prioritization has opinion that that corrections to essentially we look make feel investment you that

fund things. thing within allow find working organization, in we we And us most a to the very The are been things that on are organization. through of drive what what we're is important doing the announced do the we the that focused big can and how July was thing have really was efficiency in other we we doing did quarter the realignment that stop that second the that

we opportunities look We those our continue to focus on global at what as are workforce.

looking is that we do sure all know but all how are investments, reason of also in what on our focused at different capabilities that funding we I very and internally of there required the projects, Sabre. and So, we are outside Rick? dollars go through do with laser is that, we those technologies can we're working new for that partners how of make in

at talked get and the the Solutions going systems suite, about and we That to AirVision, we time, know point, strength there. PSS is airline. last priority, we the doing the think intensity, commercial CapEx. Sean's optimization That's Airline what air kind on the about well Yeah, are PSS and better John, a you we strength we're of specifically you right, really, this intelligence of critical from guys, as invest portfolio, whole about the the about, question investment, distribution there. return those then is call right asked capital the commercial the to, is airlines. to really travel right in And and the the just for and we're And of right part underpinning hope, and connected it's how the rates,

we more hadn't away free get dollars. in of some investment, the where better and so to talked the changing on On within to that we across side or making we we're about it And about company, the company, portfolio some we're resources sure focus across AS or order up been sure operation make order areas. how pull that getting into return acceptable before, those go put in both that's so and to

Network if have to any the follow-up, played seems down pricing which, you. role? which saw quick price growth ask favorable just then breaking Thank one also increase, like-for-like could very in Rick, and should've mix, to between I strong you a I you, been guess, Travel offset just by And

that won't as of And we QX, we in that of don't little way. price-uplifting had said, continue. that expect a the exactly is we it bit Yeah, so much quite that

the of X% impact it's X.X XXX of we bit you little unexpected bookings, bookings. revenue from the bookings, hurricanes, a the On flip million about had about side, so if on million get

QX, getting have lower But And liked that's played positive for good remember, we in We in seasonal. year. And so confident the to have caution want that why that we out. of both to kind of QX second and the Travel is But XX% how won't total EBITDA QX. QX again, we're quarter there. half, XX.X% it in Network. margins And to benefit pricing the

again, as in look Europe and in And And continue look growth we that and Middle in to out and as gets the thing rates are markets what had looking our Rick from higher-value to here, greater align than side APAC. the Yeah, can at we GDS an EMEA. strategies. have we the had the at just ourselves in EMEA. and really perspective, Americas. into We growth this the that in script are the well the of in another equation, at We does within his this those growth in XX% marketplace We point to the airline have had rates when Asia. East what XX%

Thanks, John.

Okay. Thank you.

Our is from Jim next Goldman Sachs. question from today Schneider

rolling is for other that if Lara you Southwest stepping expansion I you not, guys today. on been and could if a or there, underlying margins, there's about if healthy Schneider Or wondering, showed bit helping there? have margin Solutions just is little is off helping efficiencies Solutions that? Fourman This talk Good for the really doing was in mixed if morning. work that, Jim

and fully from well. our was I think Alitalia good had also SLA we But flow-through. we implemented isn't of and easier roll-off we margin higher that. of The the expenses, to margins. high last from, it. It I expenses, had reduction out benefited really as cost from Southwest that have called the That's an year, one, really in we progress, onboarding positive margin, comparison that a this again, benefited where year the Solutions primarily

right G&A biggest and lose revenue cost-reduction That's we So getting things sales of weren't you sized and and sight input. producing, the for of in side took in program, the side, can't the that. the that care we're of it some

are with that things haven't and outs other you're The and changed. familiar all ins

on year, then year? expect on that margins, the this they do but Network Travel And obviously, you put the Thanks. next to some margins pressure return can have those OTAs

growing. a the TN are bit profile. the We to margins. Well, But we They along lower OTAs update haven't ones, do them. bigger with grow of a have, XXXX margin any the for given

in We well, stronger, first going restated Rick stated it's half the and what weaker. that of half margins range the a as that's identified and to and the seasonal out, margins at it thing beginning Yeah, year we are this that important his is to be. where the of for were second year. the Typically, XXXX going as the see XX% margins be in do on they're XX.X% that see basis are we year during comments, we've the to

actually out So had would at beginning out it's as play of year. it the playing thought the we

Okay. Thank you.

Thanks.

to Kelly Oppenheimer. we'll Jed go Next from

in for to get just a going opportunity Great. actually on my to invest their that marketing, continue technology, I to guess, And OTAs service their question. lodging question, their to agency in in air later versus you the my Thanks causing more OTAs what's invest then touch XQ for some second contracts were may. air? an marketing Two, the is on-board you supposed they're to in the XXXX? I there taking more on-board more on because more, as of sense if Can I is

Rick. is this Jed, Yeah,

contracts, of Americas, of coming There on. we the it's just agencies. of slowing conversions, And small that of agency the bit in There's is nothing a working there. on. a a we're the just some really particularly there. handful On It's see pattern not consistent those again,

things side, it the – the of one this relates as look at investments also more invest agencies and within lot allows for equation, And our how do, you airline have on specifically the TMCs. but not value as position world their to trying look discussions to them at investing high distribution to do happening return the we're I sure of on developing that distribution, side when the the reasons at strong the well. and is that changes sure distribution at the your OTAs, specifically front when it a them number second technology, what we are that what helping in the very where of that and to a they airlines, they what's on of only key this Because they're the making on they to greatest relates lodging center have with is question, a evolution and focused are they're going in look make as in of the think, as look their each around we want the do we just do is give agencies, to we company how in OTAs of hearing brick-and-mortar

spot way So those you're conversations on are it. and taking that on at the place, they're looking

Thank you.

comes Deutsche Our Bank. from next from question Ashish Sabadra

question quarter. in benefits out, you're as laying percentage coming that on to the initiatives. Solid EBITDA realignment My detailing There's forward. was products out around investment the also from of making terms going some for the be going infrastructure. the as well Thanks in

of understand another investments think CTOs and Just are forward, investments, coming what CIO we and us the onboard? the tailwinds you with help consider the just we as year going about as should new can percentage XXXX

a the done year one lead And receive we've had CTO beginning new talked of it's some for they're Shirk We of that the at positioned lot moving just those, about. both at bit basically, a being moves. of over the the leaders, the said. year start well earlier, coming the and Clinton and to end prepare the Ashish, you the Dave internal onboarding to well, HS. work as Anderson Joe external, of focus focus, Vish into and Yeah, to that DiFonzo, at the AS, CIO, of of the of

at XXXX, any versus given pre droned place XXXX, the call. growth I that same point preliminary pre-XXX XXXX. level to accounting, said. about would which up to would We flow. see we guide cash So, both this XXX revenue that of again, in in expect the shaping revenue we still through we've similar and the And that on XXXX in flow to in for up it change dynamic are shape as similar in free growth the dynamics at similar market And

the playing just and into up have, And execution well, so the that are those sharpening that. on we dynamics are new and that folks the

just for a Thanks or quick about giving Day And guidance? Analyst any for a the plans out color. question mid-term

the give how things on as Well, at I guidance that guidance will of consistent, and said, our at look ahead of QX call. XXXX following time Sean, we transpire the and that might years to have we later. in And and Barry give been we'll

We prepared do now. aren't that to

Thanks.

Our Abhey Securities. Lamba Mizuho next is today from from question

Yeah, Securities. thank It's you. Mizuho

working thanks kind When Solutions the update the and the on Sean, at things for other are new do you're contracts So, you business look that you of show the investments or for there completion the we some making. of contracts you're Airline Or that investments that of can technology these the you're the meaningful we that need sign, business up, on process? NDC making? expedite

they're taking mean, what's I Yeah, completely and investments different place.

business focus Solutions, place. just mentioning as So and I units, retailing think you're rollout, Network of and Travel we're that's specifically how I as speaking it distribution, TAM separate. Airline more if on at of investment that well I that's specifically, was the looking as distribution, to it that's the and Everything speak taking relates within each our

but is this deliver, and look that is taken going to back prioritization of and need strategy So, those is investment that – top as we at of investments, as I said of, to sure business we looking are what on then at the our that forward. goes separate, we that on focused making what the care

you think not I revenues and margins now, XXXX terms should year? your you're of any takes know how guidance qualitative in give next it. giving right Got and And but can Rick, puts we about

what priorities repeat QX, by we that, we said, I said on the us or I can't, to proof in investments, making able we'll across are, on we're – what have could put return here And the we a on the a are QX platform just the XXXX, is, with where and as and different to hopefully, whether we're just really what again, investment want think judge we and have level. are, stack view at – I've lay focus last No, we out in that, level, focus but at our question, at we points on to because painted increase otherwise, done product respect then I high better it's beyond some or progress? a let's

it. you. Got Thank

on, we'll Stanley. Essex hear Moving from Brian from Morgan

there the taking NDC, where and for economics in maybe the of mix looks nature, meaningful balance Particularly now, a what the distribution, you and maybe thank and – carriers inventory in the opportunity question and see morning, as good may role and I do or do for as play they like see for the about between commodity more upside I primarily role OTA OTAs mean, that you revisit the that – some in particularly this is with conversations you'll question. a play try airline with OTAs distribution? is Rick, kind potentially Hi, indirect maybe you and you they considering Sean. distribution their guess, have TMCs,

tackle that, add some Rick comments. Yeah, let me and I'll let

And in the forms how it continue play an to what comes and how the the agents, together, thinking really they is world see and both that, And – have of focus in I a brick-and-mortar doing on all to on, in carriers And with ago, well TMCs, you was we I thing looking Europe across both on being airlines Americas, they agency for focused it important the America. one these and that in a of a voice clear they that – conversations when drive through squarely carriers what don't around at a that's the OTAs. of distribution And look distinction here have about primary and month the little are that this us as actually So as of the higher the South out are going this revenue. spent is of this. that, this as each is lot is components, important bit and the that's the middle sort is driving coming clearly in role are break think time be driving doing see their couple are we are revenue more with distribution, relative North differently. weeks in as I that well to – sitting at down. APAC The as

bringing my is distribution, capability about products the equation. on of on all the And and I side the I adamant are happening, we on been, ecosystem think office. accomplish the I you has how going these very this does us, deeply this is in And are in need as something I'm that actually, of what together a there focus they've void we it to what a to number fulfill relate travel every as we what mid- can that to you for drive stuff, the do and how relates forward, which cover executives back that's that? do. been mentioned constraints it piece going technology the middle comments, it – to they they're of sits in selling related do to think direct we it. to drive and And And the on able of agencies how the trying brick-and-mortar, revenue, all is right or more and and but it. also of the and services, through, as working into what's that through not go And what's this and through it happening only OTAs touch

to invest want own capital, agencies are us at the we're I sit the this sure carriers make they forward they for do do earlier, the drive what feel make evolve need into, really to in that bringing where mentioned looking And do, it supporting gets and in that their as model. to them. that help transition same can to position they're to OTAs capabilities sure they those highest returns the we are they at areas a looking going we're for This to help time. and the So when good

then look side some how to that, on NDC standards, consensus different perspective the what see And to in at carrier of how to of What do together regard forward? all And onto terms is unification how marketplace look you much you to that in like levels the we gauge of invest that to adoption from follow how going in what platform? of levels can carrier but at coming things the to going I of you're maybe do investing? they're with terms maybe in they're going kind are that? in And of are these move understand what varying standards and determine the

this products so differently. bit at that standard is have standardization cannot specific channel. be – is. putting it little you they a of services, and thing you done what having management? are how to about with the will to have we been or is to asked because protocol thing to be different managing I think it, that? in of NDC I have of you them, about that's able services right, that's Yeah, the to you Remember, it together, give more present dynamic has with do I in hierarchy we going be a PSS The because when a level at there, carriers indirect and you focused what with that. think to a service sell being look revenue how And business is vocal the have selling, NDC different thing way is relates begin completely more, be to – to can different I we're one into protocol, as also and voice is offer a if changing strategies on and That's looking way find you pushed going is do conversations system. focused at that see, relative to that and is are you throughout of the as on different sell, we're it in airline find What towards example it Because how begin are it's able one and be are them enhance or what development at going are that – they're drive is gets sold to driving where call the that's to the is revenue companies And this There typically to of we a to of look is, products carriers of forefront on they reason and it is an going couple are what how can important really and NDC, we what you this. the classes – different go what the you'll locking how why a is why carriers, into carriers, make this are is and that. what the sure to very be forefront

it's how So that's I what the detailed conversations fulfillment just not about how of some consider end at you it be the of of it, really would do but selling change day. do do just the to you the

pace is looking those we're with along normal is it's structure. now at that a don't investing at what different we've and basic closer that relative of has or would airlines all I real around means – standards NDC I on the of of distribution a or But change clarity or airlines the center renewed are number to. month XX dozen Rick. of in do more a that important need put over discussion add this, at and model is it's the number are year, the they to all we to talked those, XXX and GDSs and in couple it realize the are world we to renewed want what is to the that and going the It service protocol, last again, terms work evolve changing, we the NDC, there just about Sean who the are of quarter, got aren't has the how have a that multiple important airlines out little a ones that so are of it we to this are Brian, the and are And of year or the flavors. NDC. Hey, means of GDS, has those while new bit in frame the airlines through to how are well. with last to around of those, come any are those, of out incorporating near-term of this we in set so to critically a realize the forefront since And nothing in talked to outside And there And protocol. as think well majority of right aren't position our protocols. the important

from OTAs, that. You've even the TMCs, airlines, that the big and American heard stating the big Airlines, like

it so that. to can be we paced going is along and with And pace

Great. Thank you.

Our & next from from question Company. is today Broome Matthew Cowen

Hi, call. thanks my for taking

Hospitality Just one me, how for from business? Thanks. would the you Solutions your pipeline characterize

benefited central that hoteliers to from global continues fact Hospitality. a going I across Well, systems, are And where by reservation lot we have again, growth Are there our in Consistent. had the grow both bit That's little still we of independent growth are driven make People we growth whole with there. the this I'm year, a then be as put the rest that of well to and continue cut-overs on as Thanks, about, into to bad. you reservation sorry, Wyndham and we strong teens growth good here of more Oh, guys. there. we My expected, at continued as quarter. it. systems we've the we as That Hospitality. to beginning QX. think Appreciate in mid-teens? fourth in quarter, will in the said, AirVision, some doing talked as go the said central the XXXX. corporate concerned. that AirCentre We have the

in what seeing. intact Hospitality that is So teens' for growth we're Solutions

much. very Thanks,

we'll go to Brad next Markets. Capital from KeyBanc Erickson And

thanks, Hi, had two just follow ups.

outlook, the just Thanks. a as on update pertains on First, quick LATAM expected could provide any get we and the implementation? update you're then Alitalia to able it to

Yeah.

protection So the Alitalia is trustee. continuing operate to of the under

to continue get paid. We

with provide to continue to We them that operations. them improve are allowing critical their services

that working expected the any change year. next in over have hard half don't on to I we there. LATAM, and before, So we're it's mentioned as cut first

that, side is recall. passengers of This you'll that when brings our an million-plus XX SabreSonic side cuts benefit an the boarded. if over, do and so that's that airline. on that, We're TAM on of long of we And implementation another get for the the running incremental

provided yet. performance was improving to I that perspective. think actually not on they from is tapped relative their a line, reported Back had they've million it government €XXX into that that Alitalia, that the have That them, even financial

Thank following CapEx intensity-wise, on maintenance about That's And and up talk the changes, think have capital potential to a then of thinking just questions you. that NDC you Can lot going should for there? relative about we investors about be incremental how been should forward? guys the NDC just great. associated asking. Any

thing. there. Well, pacing doing the protocol, our the the building again, and And to you plans, market the how values, incorporation That that into and anything is and that in that's good to a are ready better of evolution. be airlines not of again, priorities, And pacing NDC is the manage many-year this we're so highest to that focus we're highest no, able piece add when and ready. rotation makes this additional in will a the evolution

tell so year reduce that to are do to last intensity that message fundamentally Got of though, does there, sort of it. kind you to I guess, been or NDC drive ultimately? here? to just aiming Is capital you've serve initiative the looking the over

Well, it's part of it.

would what the that's And because about right lot customers gives intensity, I that it us marketplace agility had are developing benefit capital think adjustments the we that it forward. will at is there ourselves a if we to ourselves is to and needs. flexibility and about the I won't to where to as of benefit when essentially is marketplace, why all Because we're of start agility going that's talked off is be on what strategy our look core, sure moving evolve, you the make capabilities mainframe, platform data more make the providing what infrastructure continues agility. this and investment, to the this

medium more term. longer Again, that's

Yeah.

Thanks. Great.

from question next from Wasiolek Morningstar. Our is Dan

see on-boarded customer question. give switching Thank also, can if for you. if Thanks percent Network. how what of you you some And can guys. where grew? kind of gears the of toward and give of year? APAC been has to of your that taking morning, some on color each the Kind the this new you end markets Good information Wondering Travel the back regional on

Yeah, Latin XX.X% big the Well, by the did that again, is good regionally, there, had growth, in conversion now in as North contributed in have APAC. in to some again, that we of And America, growth lost and And from bit, XX% approximate little well, a biggest quarter, X.X% we on And we showed being in out got contributed due bookings America the slides agency our pushed the the EMEA, had APAC. conversions to that declines. hurricanes. the was impact bookings in million mentioned two to as impact X.X that those that. But I the things Americas the

on quarter, will XXXX. bit big in the of a conversion continue terms first agency here the into APAC of quarter in the In of the continuing

Yeah. of of And their component conversion, side, their close Flight the business. business total leisure XX% probably leisure up conversion their to On on business. makes leisure that, is Center the the first

stores the within the business is that would roll so be schedule they year. was What have late phase the of conversions early Australia next ahead out that, this that second component of and of the assumed year Zealand actually was well. what tracking are the really going and We always into number place, on will taking New is

air grew overall industries regions respective the just in Okay, on for bookings helpful. how the market? And for information any the

on that it Yeah, we're in will out, next out it and the waiting as for comes detail weeks. come

enough. Fair

granularity. And we feel the positioned to you the and we again, and about played ins giving and good get in outs how hopefully QX,

you. Okay. Thank

we'll a Steer take question from from Redburn. And Neil

NDC. NDC Hi, a Is the American commentary agents strategy thanks any that the and very of with ago? specific that much feedback for thanks on there share announced couple was you the can to from months regards

continue know, booking if to that back aligning what the you from going one changes dollars the a hearing think you And again, to listen getting that be channel, that more lot And to to mid- of story, a have and aligns of question going direct entire pay brick-and-mortar middle before investment playing to what is OTA, and been dollars or that's changes. that thing is systems make with And people the on that, to their have required I hear to I is ask, that, model Well, change make agencies, I – what always millions to in what mean, new have a they they of the millions come an the the they've in technology going than to and they will The have going the additive that capabilities. and have you that it heart them go transplants. investment of agencies is thing what of aren't in GDS enough marketplace for they are spent often be is they back the a agency, you're from to back-office. remember, if to sort distribution is it would they're GDS the – flow the be forms make probably essentially be that that, offsetting is sort the if And in perspective. vocal with development. it's to be the continues through sure the

end. what there's the offered for that what we're you and of with back at a they just them doing airlines, associated be enough You're look by enticed what being development heart essentially of on and are this have that, transplant, when – not agencies is costs hearing the some will because to is

as any actually if fee? in you a fees this you NDC the I'm to that. Level that reimburse airline economics agents, they from for to the you but is be if the for I'm pays liable may provide sure incorrect, my any distribution Thanks agents so if changes perspective of agent's And use understanding X NDC wrong, me Okay. the the the slightly Because airline case. correct through that content way, not

that it that way. itself Remember, of isn't on model. see business But, No, the determinative or no. content don't the NDC doesn't deliver,

Thanks. Okay.

And session. would Mr. Menke? call Menke closing remarks. turn With that conclude question-and-answer to the back does Mr. like to I for that, today's

great. Yeah, you everybody I the joining call very appreciate much, Thank and today.

and see, there's a of taking it that momentum I the and at of place As I've can a one said couple a place And of times – changes taking to XXXX. enough different you can't employees thing within I the doing into move thank Sabre they're areas. would this continue be of lot across are gain number as remiss, the what we and organization that momentum

So, you talking year the forward to end. to look at again,

And conclude participation. your that our you for conference does today. Thank

may disconnect. You now