Earnings Releases

The SABRE Group Reports Second Quarter Results

FORT WORTH, Texas -- The SABRE Group Holdings Inc. (NYSE: TSG) today reported second quarter net earnings of $58 million, or $0.45 per share, an increase of 17.8 percent over 1996's pro forma second quarter results. Operating income was $93 million for the quarter, an increase of 6.4 percent over pro forma operating income for the same period in 1996. All 1996 pro forma amounts reflect the impact of new contracts with American Airlines, which were entered into July 1, 1996 (made retroactive to Jan. 1, 1996), and the impact of certain other transactions resulting from the legal reorganization of the company in July 1996. Compared to 1996 actual results, second quarter net earnings increased $9 million or 18.4 percent. Operating income increased $12 million or 14.8 percent over the same quarter the previous year.

Revenue was $447 million for the quarter, an increase of 8.7 percent over 1996 pro forma revenue for the second quarter, and a 9.0 percent improvement when compared to actual second quarter 1996 revenue. “Our strong second quarter net earnings growth is in line with our expectations,” said Michael J. Durham, The SABRE Group’s president and chief executive officer. “We continued to build our external technology business by signing long-term information technology contracts with Cathay Pacific, Reno Air and the International Technology Corp. - Sirena." For the six months ended June 30, 1997, net earnings were $125 million or $0.96 per share, an increase of 10.5 percent over the same period last year on a pro forma basis and an increase of 5 percent over the first six months of last year on an actual basis. Revenue for the first six months of 1997 was $887 million, an increase of 6.6 percent over the same period last year on a pro forma basis and an increase of 5.8 percent over the same period last year on an actual basis. Operating income for the first six months of 1997 was $201 million, an increase of 1.9 percent over the same period last year on a pro forma basis, and an increase of 2 percent over the same period last year on an actual basis.

“Our year-to-date results continue to show consistent growth of revenue and earnings." Durham added. "We are encouraged by the penetration of our newer travel distribution products, including Planet SABRE for travel agents, SABRE Business Travel Solutions for corporate customers and Travelocity, our reservations Web site for consumers. We are also pleased that the World Travel Awards selected SABRE as the World's Leading Global Distribution System for the fourth year in a row and Travelocity as the World's Leading Travel Internet Site." The SABRE Group is a world leader in the electronic distribution of travel and travel-related services around the globe, and is a leading provider of information technology (IT) solutions for the travel and transportation industry, including customized software development and software products, transaction processing, consulting and total IT outsourcing.

The SABRE Group - Condensed Statements of Income - Three Months Ended August 31, 1997

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