TVPT

Travelport Worldwide Ltd

TMT


Presented:02/23/2016
Price:$12.21
Cap:$1.51B
Current Price:no data
Cap:no data

Presented

Date02/23/2016
Price$12.21
Market Cap$1.51B
Ent Value$3.92B
P/E Ratio101.75x
Book ValueN/A
Div Yield2.46%
Shares O/S123.29M
Ave Daily Vol1,232,874
Short Int2.90%

Current

Priceno data
Market Capno data
Travelport Worldwide Ltd. is a Travel Commerce Platform providing distribution, technology, payment and other solutions for global travel and tourism industry. The company is comprised of: A Travel Commerce Platform, through which it facilitates travel commerce by connecting the world's leading travel providers with online and offline travel buyers in a proprietary business to business travel marketplace. In addition, Travelport has leveraged its domain expertise in the travel industry to design a pioneering B2B payment solution that addresses the needs of travel intermediaries to efficiently and securely settle travel transactions. Technology Services through which it provides critical IT services to airlines, such as shopping, ticketing, departure control and other solutions, enabling them to focus on their core business competencies and reduce costs. Travelport was founded in 2006 and is headquartered in Langley, the United Kingdom.

Publicly traded companies mentioned herein: Amadeus IT Holding SA (AMS SM), Delta Air Lines (DAL), Sabre Corp (SABR), Travelport Worldwide Limited (TVPT)

Highlights

Travelport (TVPT) is one of three GDS (global distribution system) providers in the market, and the presenter is long the stock. He likes the oligopoly market structure and thinks there is upside for shareholders following recent weakness he attributes to unbiased selling of levered businesses, the Orbitz contract loss, and selling its IT segment back to Delta (shares have declined from over $16 to ~$12 over the past year). TVPT, Amadeus and Sabre act as third party distribution for airlines, hotels, rental car companies, and also online travel agents on the other side. TVPT has pricing power (on both the supplier side and client side), “which has been expressed by a couple points of price increases annually over last few years.” Overall, he expects to see high teens (%) EPS growth over the next 3 - 5 years, and after declining to ~10x his 2016 earnings number the risk/ reward is very attractive.

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Idea Discussion

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