Expedia's Net Soars on Jump in Bookings
SAN FRANCISCO --
Expedia
(EXPE) - Get Report
topped Wall Street estimates for profit and sales in the first quarter, helped by an increase in worldwide merchant hotel revenue and a spike in media and advertising revenue.
The company posted first-quarter net income of $51.3 million, or 17 cents a share, compared with $34.8 million, or 11 cents a share, a year ago. Excluding certain items, net income was $71 million, or 24 cents a share, up from $59.6 million, or 18 cents, a year ago. That beat analysts' estimates by a penny.
Revenue for the first quarter jumped 25% to $687.8 million from $550.5 million a year ago. Analysts had anticipated revenue of $658 million.
Gross bookings shot up 20% in the first quarter compared with a year ago. North America bookings increased 15% while Europe bookings increased 34%, or 25% excluding favorable foreign exchange rates. Other bookings, primarily from Expedia corporate travel and the company's Asia Pacific operations, increased 31%.
Sales in North America jumped 22% in the first quarter. In Europe, they were up 33%, or 23% excluding foreign exchange. Other revenue increased 38%.
Worldwide merchant hotel revenue increased 22% in the first quarter, buoyed by a 23% increase in room nights stayed, which includes rooms as a part of vacation packages. That was offset by a 1% decrease in revenue per room night.
Worldwide air revenue increased 18% because of an 11% increase in air tickets sold and a 6% increase in revenue per air ticket. Worldwide revenue from products and services other than merchant hotel and air, which include advertising and media, car rentals, destination services, agency hotel and cruises, increased 39% in the first quarter. Package revenue increased 13%.
Shares of Expedia were down 1.2%, or 29 cents, to $24.97 in morning trading.