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Sabre Misses Projected 3Q Growth

Sabre cites aftereffects of the Sept. 11 terrorist attacks for lower-than-expected revenue growth in the third quarter.
Sabre Holdings Corp., the largest provider of technology, distribution, and marketing services for the travel industry, reported a third-quarter revenue increase but fell short of its projected growth because of a significant decline in travel following the Sept. 11 terrorist attacks. Sabre says it was on target to meet its third-quarter and year-end projections of 20% earnings growth before the attacks.

Third-quarter revenue was $525 million, up almost 6% from $496 million reported in the same period a year ago. Income, excluding one-time charges, was $53 million, down 13% from the same quarter last year. The company took a $6 million write-off for Ariba Inc. software licenses. It bought the sell-side software to run its online Sabre Marketplace site, which has since been shut down. As part of an effort to reduce costs during the past year, Sabre sold its airline infrastructure outsourcing business to EDS.

Travelocity.com, an online travel company that is 70% Sabre-owned, booked $785 million in reservations for the third quarter of 2001, up almost 21% from the third quarter of last year. Third-quarter revenue was $78 million, compared with $53 million for the same period last year. The site added 1.7 million members, a 30% increase.