Why Sabre Shares Are Trading Lower Today

Sabre Corp SABR reported first-quarter FY22 revenue growth of 79% year-on-year to $584.9 million, beating the consensus of $536.4 million.
Revenue growth was driven by higher global air, hotel, and other travel bookings reflecting continued recovery from the pandemic.
Travel Solutions revenue rose 85% Y/Y to $534 million, and the corresponding operating income improved 143% Y/Y to $45.5 million. Distribution revenue grew 126% Y/Y to $342.9 million, and IT Solutions revenue increased 39% Y/Y to $191.1 million.
Hospitality Solutions' revenue increased by 33% Y/Y to $56 million, while the operating loss widened to $(15.1) million.
The adjusted EBITDA margin improved from (33.4)% to 0.9%.
Adjusted loss per share of $(0.29) beat the consensus loss of $(0.34).
It used $139 million in operating cash flow and held $1.21 billion in cash and equivalents.
"After a slow start in January due to the Omicron variant, the travel recovery accelerated sharply and bookings in April ended at the highest level of recovery versus 2019 since the start of the COVID-19 pandemic. The overall improvement in each global geographic region has been particularly positive, supported by a significant return of more profitable international and corporate travel," Chair and CEO Sean Menke said.
Outlook: Sabre reiterated its FY22 revenue outlook of $2.2 billion - $2.5 billion at 50% bookings recovery (% of 2019), $2.5 billion - $2.8 billion at 60% bookings recovery, and $2.8 billion - $3.1 billion at 70% bookings recovery.
Price Action: SABR shares traded lower by 10.3% at $9.46 on the last check Tuesday.

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