Expedia Revenue Misses Analysts' Estimates
July 28 2016 - 5:30PM
Dow Jones News
Online travel company Expedia Inc. on Thursday said it was
considering taking Trivago public.
The disclosure came as the company reported second-quarter
results that missed analysts' projections, sending shares down 4%
in after-hours trading to $114.
Expedia bought a majority stake in German startup Trivago in
2012. Trivago, which in the most recent period reported a 42%
increase in revenue to $201 million, focuses on metasearch,
allowing consumers to quickly compare rates and availability across
booking sites.
Launched in 1996 by a small division of Microsoft Corp., Expedia
went public in 1999. Billionaire Barry Diller, who's served as
chairman and senior executive since the company's 2005 spinoff from
his media conglomerate IAC/InterActiveCorp., retains voting control
through a proxy agreement with John Malone's Liberty Interactive
Corp. In March, Mr. Malone's company filed to spin off its position
in Expedia, paving the way for Expedia to buy the stake.
Over all, Expedia reported a profit of $31.6 million, or 21
cents a share, compared with $449.6 million, or $3.38 a share, a
year earlier. Excluding stock-based compensation and other items,
profit was 83 cents a share, down from 89 cents a year earlier.
The year-ago results had been even bolstered by the sale of its
equity stake in eLong Inc.
Revenue rose to $2.2 billion, with HomeAway adding $172
million.
Analysts surveyed by Thomson Reuters had projected 78 cents a
share in adjusted profit on $2.25 billion in revenue.
Gross bookings rose 25%, driven by room rentals even as the
company made less money on average from each rental. The amount of
money Expedia makes from each room rental is expected to continue
to fall on a year-over-year basis for the rest of the year.
Hotel revenue, which accounts for 61% of overall revenue, rose
14%. Meanwhile, air revenue rose 50% and advertising and media
revenue rose 42%.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
July 28, 2016 17:15 ET (21:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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