LOT of talk recently about the future of travel wholesaling but the ultimate statement can be found in the latest results from Travelport, which is set to slash the valuation of Gullivers Travel Associates by between US$800m to US$900m – more than 50% of its current stated worth.
Travelport CFO Philip Emery said: “We expect to record a non-cash impairment charge in the range of US$800 million – US$900 million. Our GTA business continues to be a market leader, has year to date Adjusted EBITDA margins in excess of 20% and is a positive cash flow contributor to the Company. This impairment will reduce the carrying value of goodwill and intangible assets for our GTA business to be in the range of $700 million – $800 million. The impairment was identified due to the recent performance of the GTA business and our expectations for the future performance of the travel wholesale industry.” You can’t argue with that.