Expedia has reported a loss of $2.76 billion in its fourth quarter due to a substantial writedown in the value of its assets, as well as a slump in revenue from airline and hotel bookings.
The loss compares sharply with a profit of $65.4 million the year before and came in short of market expectations. The $3 billion write-down of goodwill arises mainly from the sharp fall in Expedia’s stock value, down 67 percent in the past year. The stock fell another 10 percent on unveiling its latest results.
Low hotel occupancy rates and airline capacity cuts have hit bookings during the recession.
For the period ended 31 December, revenue slipped 7 percent to $620.8 million from $665.3 million.
Total value of its fourth-quarter bookings fell 11 percent to $4 billion. North American bookings fell 13 percent, while European bookings fell 11 percent.
The results contrast sharply to those of rival Priceline, which posted a fourth-quarter net profit and a 23 percent jump in the total value of its bookings.