Expedia posts first-quarter net income of $51.3 million
A mix of both transactional and advertising revenues has continued to deliver strong profitable growth for Expedia.
Published: 02 May 2008
A mix of both transactional and advertising revenues has continued to deliver strong profitable growth for Expedia.
The online travel company announced its financial results for its first quarter ended March 31, 2008, reporting a rise in net income to $51.3m (£26m) from $34.8m a year earlier.
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%.
"Expedia employees around the globe continued to execute in the first quarter, delivering record gross bookings and solid OIBA growth," said Dara Khosrowshahi, Expedia, Inc.'s CEO and President. "While 2008 continues to present an uncertain economic backdrop, Expedia remains focused on investing in our leadership position to drive growth in long-term free cash flow and shareholder value."
The company stated:
· Worldwide merchant hotel revenue increased 22% for the first quarter due to a 23% increase in room nights stayed, including rooms delivered as a component of vacation packages, offset slightly by a 1% decrease in revenue per room night.
· Worldwide air revenue increased 18% for the first quarter due to 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 (including advertising and media, car rentals, destination services, agency hotel and cruises), increased 39% for the first quarter due primarily to increased advertising and media revenues and car rental revenues. Package revenue increased 13% primarily due to higher package gross bookings worldwide.