Expedia profits surge 50%
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Expedia has posted a sharp rise in profits for the second quarter of the year.
The online travel company reported double-digit growth in almost every area of its operations, resulting in a 52% surge in net profits in the three months to 30 June 2014, to US$137.6 million.
Gross bookings jumped 29% in the quarter, driving revenues up 24% to US$1.49 billion. Operating income rose 37% to US$129.2m.
Releasing its results, Expedia said that the rise in bookings was “primarily driven by room night and air ticket growth”.
International bookings totalled US$5.2bn, accounting for 40% of its total. This actually marked a slight decline from the 42% international bookings it recorded in the second quarter of 2013, a result that Expedia said was mainly due to the inclusion of the Travelocity website in the results, which bolstered domestic bookings. International revenue totalled US$706m, representing 47% of the company’s global turnover.
Hotel revenues increased 23% in Q2 2014, on a 28% increase in room nights, while air revenues climbed 22% on a 28% rise in air ticket sales.
“Q2 was an excellent quarter for our company,” said Dara Khosrowshahi, president & CEO of Expedia. “I couldn’t be more pleased about how the teams are executing, and about the strong result that we’re seeing as a result.
“From a brand perspective we saw strong performance pretty much across the board. Brand Expedia and Hotels.com continued to perform very well, the Travelocity implementation went smoothly and that business is performing better than we had expected, amplifying both top-line and bottom line growth rates.”
He added that the result was helped by the timing of Easter, which moved into the second quarter this year.
Expedia continued its rapid expansion recently, with the acquisition of European car rental booking site, Auto Escape Group.
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