Expedia results down on expectations

Expedia has revealed financial results for its first quarter
ended March 31, 2006, with revenues unable to balance cost increases.“While we anticipated negative growth in the first half of 2006, our
performance this quarter was far below those expectations,” said Barry
Diller, Expedia, Inc. Chairman and Senior Executive. “We increased costs in
many sectors—necessarily we believe for our long term growth—but
didn’t generate the revenues to offset the increased expenses. We believe
little has changed fundamentally—Expedia remains the largest and most
profitable online travel agent in the world, and while 2006 is going to be
a challenging year, we don’t think long-term shareholder value and returns
are in question. With that in mind, our Board of Directors has authorized a
buyback of up to 20 million shares of our common stock.”
  “Needless to say we are disappointed with our financial performance
this quarter, and we are focused on tactical actions—including a shift
of our marketing approach—to drive improvement in our results for the
balance of the year,” said Dara Khosrowshahi, Expedia, Inc.‘s CEO and
President. “At the same time, we continue to make real strides in our
integration, data warehouse and technology platform efforts, which we
anticipate will yield the bulk of their benefit in 2007 and 2008.”