Profits down at Orbitz in second quarter

Profits down at Orbitz in second quarter

Orbitz Worldwide has seen profits slip over the second quarter, although strength in its international business arrested some declines.

The company said earlier the total value of its bookings slipped three per cent to $3 billion, led by a fall of about 9 per cent in domestic business.

The value of international bookings, which account for more than a quarter of the total, gained 39 per cent.

Second-quarter earnings fell to $8.9 million, or eight cents per share, from $9.7 million, or 9 cents per share, a year earlier.

“Our financial results exceeded the top end of our guidance range during a challenging period in which we have been making major technology and product investments throughout our business,” said Barney Harford, chief executive of Orbitz Worldwide. 

“Among the highlights for the quarter, ebookers once again achieved strong performance, delivering 31 per cent room night growth. 

“In our private label distribution channel we launched important partnerships with Eurostar and more recently with Virgin Australia; looking forward we have an extremely strong pipeline for 2012.”

Revenue at online travel agent rose four per cent to $201 million.

The company said it expected 2011 revenue of $752 million to $762 million.