Global Business Travel Group, Inc. (GBTG) reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
For the three months ended September 30, 2024, GBTG generated total revenue of $597 million, a 5% increase from $571 million in the same period of 2023. Travel revenue rose to $478 million, up from $455 million, driven by a 5% increase in transaction growth and a 9% increase in Total Transaction Value (TTV), which reached $7,752 million. For the nine months, total revenue was $1,832 million, reflecting a similar 5% increase from $1,741 million in 2023.
Despite the revenue growth, GBTG reported a net loss of $(128) million for the third quarter, significantly higher than the $(8) million loss in the prior year. For the nine months, the net loss was $(120) million, compared to $(90) million in 2023. The increase in net loss was attributed to a $38 million loss on early extinguishment of debt and a $22 million charge related to the fair value change in earnout shares derivative liability.
Operating income for the third quarter improved to $27 million, compared to an operating loss of $(4) million in the same period last year. However, EBITDA decreased to $33 million from $76 million year-over-year, while adjusted EBITDA increased to $118 million, up from $95 million.
Strategically, GBTG announced a merger agreement to acquire CWT Holdings, LLC for approximately $570 million, expected to be funded through cash and the issuance of approximately 72 million shares of Class A common stock. The acquisition is anticipated to close in the first quarter of 2025, pending regulatory approvals.
The company also undertook cost-saving initiatives, resulting in a reduction of employee severance costs from $12 million in Q3 2023 to $2 million in Q3 2024. Total operating expenses for the third quarter were $570 million, slightly down from $575 million in the previous year.
As of September 30, 2024, GBTG's cash and cash equivalents stood at $524 million, an increase from $476 million at the end of 2023. The company reported net cash from operating activities of $207 million for the nine months, doubling from $104 million in the same period last year. Free cash flow also improved significantly to $132 million, compared to $17 million in 2023.
Overall, GBTG's financial performance reflects a complex landscape of growth in revenue and transaction value, alongside challenges in profitability and strategic expansion through acquisitions.
About Global Business Travel Group, Inc.
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