EXPE ($53-$68) Cap=$3.8Bil Revenue, Bookings Double
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By Diane Hess
Staff Reporter
10/23/2002 05:59 PM EDT
Updated from 5:26 p.m. EDT
Expedia (EXPE:Nasdaq - news - commentary - research - analysis) reported better-than-expected earnings as revenue and gross bookings more than doubled from a year ago. It also affirmed estimates for the fourth quarter.
Shares of Expedia were up $3.39, or 5.9%, at $61 in after-hours trading on Instinet.
The online travel company reported net income of $20.1 million, or 32 cents a share, in the third quarter, compared with a loss of $4.8 million, or 9 cents a share, in the year-ago period.
After-tax adjusted earnings were $30.8 million, or 49 cents a share, compared with $15.1 million, or 24 cents a share, a year ago. On that basis, Expedia topped analysts' estimates of 40 cents a share.
"Of particular interest this quarter is the growth in revenue from our non-U.S. businesses, which more than tripled from a year ago," said Richard Barton, chief executive officer of Expedia, in a statement. "Additionally, our merchant revenue nearly tripled year-over-year, driven by continued success of our merchant hotels and packages business."
Revenue at Expedia surged 109% to $166 million from $79.5 million a year ago, due to success from packaged deals and strong international sales, while gross bookings soared 103% to $1.47 billion.
Merchant revenue -- which is derived from package deals with hotels and airlines -- rose 189% to $98.5 million in the third quarter from the year ago period. Meanwhile, agency revenue -- which is derived from commissions on air ticket sales -- was up 59% to $62.5 million, Expedia said.
In the fourth quarter, Expedia expects adjusted earnings $24.5 million, or 40 cents a share, on revenue of $160 million. That would be in line with estimates, according to Thomson Financial/First Call.
For 2003, the travel company is forecasting adjusted earnings of $147 million, or $2.25 a share.
Expedia plans to invest in the corporate travel sector in the fourth quarter. "The corporate travel business is large, and we think we have a product that is well positioned," the company said on a conference call, adding that the program would be structured on the agency rather than revenue model.
On the call with analysts, the company said it has had significant decline in revenue per transaction for air tickets. Expedia said its expects that revenue to be stable going forward. |
