Expedia Inc. on Thursday posted better-than-expected profit in
its second quarter, as brands like its namesake and Hotels.com
continued to drive bookings growth.
Shares added 6.7% in after-hours trading.
Expedia's core brands have been driving growth lately, even as
foreign-currency swings have weighed on results. Meanwhile, Expedia
has been buying more brands to add new customers. The company in
November closed a deal for Australia's Wotif Holdings Ltd. In the
U.S., Expedia recently bought Sabre Corp.'s Travelocity brand.
In the latest quarter, gross bookings jumped 20%, excluding
eLong, or 28% on a constant currency basis. Bookings were helped by
strength in its Expedia and Hotels.com brands.
Average room nights rose 35%.
For the second quarter, Expedia posted a profit of $449.6
million, or $3.38 a share, up from $89.4 million, or 67 cents a
share, a year earlier.
Results in the latest quarter were boosted by the $671 million
sale of its majority stake in eLong Inc. in May. The sale came amid
growing losses at the Chinese mobile and online-travel service that
have weighed on Expedia's profit.
Excluding that gain and other one-time items, earnings were 89
cents a share, down from $1.03 a share a year earlier.
Revenue grew 11% to $1.66 billion, but would have been up 25%
excluding currency fluctuations and eLong.
Analysts polled by Thomson Reuters had forecast per-share
earnings of 85 cents on revenue of $1.7 billion.
The results come as Expedia continues to move forward with its
deal to buy rival Orbitz Worldwide Inc., which was unveiled in
February. Regulators were expected to take a hard look at the deal.
The company didn't offer an update on the review on Thursday.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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