Expedia buoyant despite challenging market

Expedia buoyant despite challenging market

Online travel company Expedia has seen both revenue and profit increase in the financial quarter ended June 30th, despite a challenging trading environment.

Revenues for the quarter grew 23 per cent to $1.02 billion, compared to $834 million during the same period last year, while net income was $154 million or $0.55 per share, up from $129 million or $0.44 per share.

The Bellevue, Washington-based company’s worldwide hotel revenue increased 27 per cent, driven by a 21 per cent increase in room nights stayed.

Shares in Expedia recovered after earlier losses

Revenue per room night increased five per cent.

Gross bookings increased 19 per cent, aided by a 15 per cent growth in transactions, in addition to rising average airline ticket prices and average daily rates for hotel rooms.

However, worldwide air revenue declined one per cent, primarily due to a three per cent decrease in air tickets sold, partially offset by an increase of one per cent in revenue per ticket.

The decrease in ticket volume reflects an 11 per cent increase in average air ticket prices.

Advertising and media revenue grew 27 per cent, reflecting a 34 per cent surge in third-party revenue for TripAdvisor.

All other revenue, primarily car rentals, destination services and insurance, increased 19 percent for the quarter.

EXPE closed trading at $28.99, down $0.77 or 2.59 per cent on 6.68 million shares.

However, in after-hours, the stock gained $1.58 or 5.45 per cent to $30.57.