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Expedia sees profits slip, but shares rise

Expedia sees profits slip, but shares rise

Expedia saw profits fall 25 per cent in the second quarter, but still comfortably beat analysts estimates to see share prices rise.

Net profit at the online travel giant fell to $105.2 million in the three months to June 30th, with shares gaining more than 14 per cent in after hours trading.

Adjusted to exclude stock-based compensation expenses and other unique items, net profit was up 24.3 per cent to $125 million.

Sales of room nights – which account for three quarters of Expedia’s revenue - increased by 22 per cent year-on-year to a record 30 million.

This was driven by 16 per cent growth in domestic US room nights.

Average airfares were five per cent higher than a year ago, but lower payments from airlines resulted in Expedia receiving 11 per cent less per ticket.