Expedia Swings to Loss While Bookings Rise
February 10 2016 - 5:20PM
Dow Jones News
Expedia Inc. swung to a fourth-quarter loss as the company
capped a year of deal making, including its $3.9 billion merger
with vacation rental site HomeAway.
In 2016, Expedia expects adjusted earnings before interest,
taxes, depreciation and amortization to improve 35% to 45% with
Orbitz and HomeAway adding a combined $275 million to $325 to
adjusted Ebitda. Analysts surveyed by Thomson Reuters had projected
a 43% improvement.
Revenue, on a room-a-night basis, is expected to continue to
decline this year from the year-ago period, largely because of
currency fluctuations, Expedia said.
Over all, Expedia reported a loss of $12.5 million, or nine
cents a share, compared with a year-earlier profit of about $66
million, or 50 cents a share. Excluding stock-based compensation
and other items, Expedia reported a profit of 77 cents, compared
with 86 cents a year earlier.
Revenue rose to $1.7 billion.
Analysts surveyed by Thomson Reuters had projected a profit of
$1 a share on $1.71 billion in revenue.
Shares, up about 21% over the past 12 months, rose 12% to
$105.55 in late trading.
Gross bookings rose 40%, driven by hotel room nights and air
tickets.
Domestic bookings, which account for nearly two-thirds of total
bookings, rose 50% from the year earlier, while international
bookings rose 26%.
Those figures exclude results from eLong Inc. Expedia sold its
stake in the company in May.
Expedia, launched in 1996 by a small division within Microsoft
Corp., went public in 1999 and has since expanded into a travel
giant with a market capitalization of about $14 billion.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
February 10, 2016 18:05 ET (23:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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