Expedia Beats Travelocity for 2nd Quarter Booking Results

Expedia edged out Travelocity as the “biggest” name in online travel in its fiscal second quarter ended Dec. 31 with $704 million in gross bookings.
Travelocity notched $630.2 million in gross bookings for the period.


However, if you tally both companies` most recent four quarters, the Sabre-controlled Travelocity still was the leader in gross bookings: $3.1 billion to Expedia`s $2.9 billion.


It is still clear, however that Expedia, poised to be acquired by USA Networks Feb. 4, is challenging the once-dominant Travelocity for online supremacy.


For its second quarter, Expedia posted net income of $5.2 million and earned 8 cents per share. That compared with a net loss of $25 million and 53 cents per share in that quarter a year earlier.


Expedia`s revenue for the second quarter was $82 million, a record for the company, compared with $44.4 million in the year-ago quarter.

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Expedia`s merchant revenue of $34 million for the quarter was pumped by the sale of vacation packages and hotel stays. The company, for instance, booked 1.6 million room nights in the quarter.


That $34 million revenue was an 185% increase over the year-earlier quarter. Agency revenue, which is primarily commission-based, rose 75% to $42 million.

“We accomplished these record results in spite of the travel slowdown caused by the economy and the events of Sept. 11,” said Expedia chief financial officer Gregory Stanger.


While Expedia recorded a profit for the October-to-December quarter, Travelocity was in the red, posting a net loss of $25 million or 50 cents per share.


www.expedia.com
www.travelocity.com
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