Can some higher ups give insight on the companies future? Im pretty new in my career and was wondering about sabres revenues and cost cutting? What does sabres future entail? Anyone else really not like kurt?
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Again, everyone knows revenue is terrible. The growth is not there. So what is the next best thing you can do? That is be operational efficient. FCF in 2025 of 200mill+. Opex to 1.35 bill. Debt is at a high rate with about 45% being VARIABLE. SOFR rates are decreasing meaning less debt and net income becoming better. From an investment standpoint, I think on the call this thursday, we see an inflection point hit and the stock catapults up.
Do you want the corp BS or the actuals? If interested in the latter, then revenue is 75% of what it was pre-covid and much of it is not coming back. Debt is close to $5bn at a high interest rate which we keep refinancing since there is no FCF to pay it down. For context, Amadeus has 2X the revenue and half the debt. Also, we continue to invest in the business which is in a secular decline - GDS, while not being able to invest in the growth business i.e. Airline IT due to cash constraints. The PR and the wins don’t seem to impact overall revenue which can mean one of two things - 1. There are greater losses, 2. The benchmark was lower
Interesting, so you are implying that the SABR stock price should be about $7 just based on the Hospitality business alone, and presumably the TN and AS business cancel out the negative of the debt without impacting the positive value derived from Hospitality.
Disagree. Yes, GDS business is losing steam BUT the hospitality business is booming and growing. Agilysys is the number 2 player behind sabre and has a market cap of $2.5 bill while sabre is valued at $1.4 bill. Free cash flow positive, Debt restructuring and SOFR rates decreasing. This is all cleaning up the balance sheet slowly. From an investing perspective, Kurt is steering the ship nicely as he decreasings operating expenses as well
What new business?? Prima facia Some renewals they should not lose (smaller carriers). Most big ones left for 1A already. NDC PR is just fluff doing what they have to nothing really new to add substantial revenue. Going to be long tough slog to a potential turnaround
From the outside, arn't they doing well with winning buisness. I see a lot of PR. Plus they are cutting expenses like RnD and SGA. There revenue is slow but free cash of 200mill next year tells a turn around story. Plus KE being greedy, he probally wants the stock to moon
Timing of Mgmt decisions prior to Covid and not knowing enough to back off
No one knows the future but look at the trends since Covid.