Booking Holdings Posts 2Q Adjusted. Loss as Gross Travel Bookings Fall 91%
August 06 2020 - 4:52PM
Dow Jones News
By Dave Sebastian
Booking Holdings Inc. said its gross travel bookings for the
second quarter fell 91% to $2.3 billion as it missed out on the
usually lucrative summer season due to the decimation in global
travel during the Covid-19 pandemic, leading the company to post an
adjusted loss.
The online-travel agency, which operates sites like Booking.com,
Kayak and OpenTable, on Thursday posted adjusted losses of $10.81 a
share, narrower than the $11.54 a share analysts polled by FactSet
had expected.
Including gains on marketable securities of $835 million, net
income was $122 million, or $2.97 a share, compared with $979
million, or $22.62 a share, in the comparable quarter last
year.
Revenue fell 84% to $630 million from the year-ago period.
Analysts were targeting $561.7 million.
"We faced a challenging second quarter and continue to face
challenges due to the impact of the Covid-19 pandemic on travel
demand, Chief Executive Glenn Fogel said. "However, we have
witnessed improvement in booking trends since April, which is
encouraging."
Room nights booked, a measure of occupancy, fell 87%.
Agency revenue, or that derived from travel-reservation
commissions, fell to $357 million from $2.61 billion. Advertising
and other revenues fell to $28 million from $284 million. Merchant
revenue, or that derived from travel-related transactions whose
payments Booking Holdings facilitated, declined to $245 million
from $959 million.
The loss on adjusted earnings before interest, taxes,
depreciation and amortization was $376 million, compared with an
adjusted Ebitda of $1.4 billion in the prior year.
The Norwalk, Conn.-based company earlier this week said it plans
to cut up to a quarter of Booking.com's global workforce, or
roughly more than 4,000 people, as it seeks to restructure
itself.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
August 06, 2020 16:37 ET (20:37 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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