Online travel company Expedia Inc. shared that its quarterly net profit fell 28 percent partly on lower operating income and the elimination of interest income from its former parent company.

Published: 09 Nov 2006

Online travel company Expedia Inc. shared that its quarterly net profit fell 28 percent partly on lower operating income and the elimination of interest income from its former parent company.

The company’s profit was $59 million, or 17 cents per share, compared with $82 million, or 23 cents per share, a year earlier. Excluding one-time items, Expedia’s income was $117.2 million, or 34 cents per share, compared with $126.9 million or 35 cents per share, a year earlier.

It stated that its bookings increased eight percent in the third quarter to $4.26 billion. Domestic bookings increased by two percent, while international bookings increased by 29 percent. Expedia said its
revenue increased by five percent to $613.9 million.

“We made positive strides this quarter in stabilising the company’s operating profitability as we continued to lay groundwork in the technology, supply partnerships and traveler features that we believe will result in sustained transaction and bookings growth over the longer-term,” said Dara Khosrowshahi, chief executive officer, Expedia.

“Much progress has been made, though it’s been ever slow to come through in the performance of our largest point of sale, Expedia.com,” said Barry Diller, Expedia’s chairman and senior executive. “But behind the scenes, where it all happens -- or doesn’t -- there is growing confidence that our investments and operational improvements are sound, and will begin to show returns in the new year.”

Expedia’s shares gained 6.3 percent after the report to $18 in extended trading, as per the information available.