Priceline.com Reports Financial Results for 2nd Quarter 2008
Tuesday August 5,NORWALK, Conn.--(BUSINESS WIRE)--Priceline.com Incorporated? (Nasdaq: PCLN - News) today reported its financial results for the 2nd quarter 2008. Gross travel bookings for the 2nd quarter, which refers to the total dollar value, inclusive of all taxes and fees, of all travel services purchased by consumers, rose 70.9% year-over-year to $2.1 billion.<br>
International gross travel bookings grow 80%,
Domestic gross travel bookings grow 59%
Tuesday August 5,NORWALK, Conn.--(BUSINESS WIRE)--Priceline.com Incorporated® (Nasdaq: PCLN - News) today reported its financial results for the 2nd quarter 2008. Gross travel bookings for the 2nd quarter, which refers to the total dollar value, inclusive of all taxes and fees, of all travel services purchased by consumers, rose 70.9% year-over-year to $2.1 billion.
Priceline.com had GAAP revenues in the 2nd quarter of $514.0 million, a 44.4% increase over a year ago. The Company’s international operations contributed revenues in the 2nd quarter of $164.5 million, an 82.0% increase versus a year ago. GAAP gross profit for the 2nd quarter was $253.7 million, a 61.4% increase from the prior year. Priceline.com had GAAP net income for the 2nd quarter of $54.1 million or $1.08 per diluted share, compared to GAAP net income of $34.6 million or $0.79 per diluted share in the 2nd quarter 2007.
Priceline.com reported pro forma revenues in the 2nd quarter of $514.0 million, a 45.4% increase over a year ago. Pro forma gross profit for the 2nd quarter was $253.7 million, an increase of 63.8% over the same period in the prior year. Pro forma EBITDA for the 2nd quarter 2008 amounted to $101.3 million, an increase of 75.1% over a year ago. Pro forma net income in the 2nd quarter was $78.5 million, or $1.55 per diluted share, an increase of 39.6% over a year ago.
“Priceline.com turned in an excellent quarter with consolidated gross travel bookings growth of 71% despite macroeconomic uncertainties and softening travel market trends,” said Jeffery H. Boyd, priceline.com’s President and Chief Executive Officer. “Our international business, which includes Booking.com and Agoda.com, had $1.2 billion in 2nd quarter gross bookings, up 80.1% from last year. The business continues to benefit from growth in participating hotels, which at over 52,000 are up approximately 50% year-over-year, geographic expansion, effective marketing and favorable foreign exchange rates, which have driven growth in bookings and earnings.”
Mr. Boyd continued, “Priceline’s domestic business also posted a strong quarter, with gross travel bookings up 59.2% over last year. Our discounted domestic merchant services grew 36% as consumers sought out travel deals and airlines and hotel companies used our Name Your Own Price® and packages services to round out demand while protecting needed yields. We also continued to promote our value brand by chopping fees on published hotel sales, following up on last year’s elimination of booking fees on retail air tickets, and providing the first Sunshine Guarantee, which protected customers if their vacation was rained out.”
Looking forward, Mr. Boyd said, “Economic uncertainty and high fuel prices are affecting the broad travel market and significant airline capacity reductions in the fall will also have a negative impact. Through the first half of the year, we believe that the positive trends impacting our domestic and international businesses have overshadowed these negative influences. We believe these trends position us for attractive top line and earnings growth for the balance of the year and beyond.”
Priceline.com said it was targeting the following for 3rd quarter 2008:
· Year-over-year increase in gross travel bookings of approximately 44 - 54%.
· Year-over-year increase in international gross travel bookings of approximately 58 - 68%.
· Year-over-year increase in revenue of approximately 30 - 35%.
· Year-over-year increase in pro forma gross profit of approximately 52 - 57%.
· Pro forma EBITDA of approximately $133 million to $143 million.
· Pro forma net income of between $2.00 and $2.15 per diluted share.
About Priceline.com® Incorporated
Priceline.com Incorporated (Nasdaq: PCLN - News) www.priceline.com provides online travel services in 21 languages in over 60 countries in Europe, North America, Asia, the Middle East and Africa. Priceline.com operates Booking.com, a leading international online hotel reservation service, priceline.com, a leading U.S. online travel service for value-conscious leisure travelers, and Agoda.com, an Asian online hotel reservation service.
Priceline.com believes that Booking.com is Europe’s largest and fastest growing hotel reservation service, with a network of affiliated Web sites. Booking.com operates in over 65 countries in 18 languages and offers its customers access to over 52,000 participating hotels worldwide.
In the U.S., priceline.com gives customers more ways to save on their airline tickets, hotel rooms, rental cars, vacation packages and cruises than any other Internet travel service. In addition to getting great published prices, leisure travelers can narrow their searches using priceline.com’s TripFilter advanced search technology, customize their search activity through priceline.com’s Inside Track features, create packages to save even more money, and take advantage of priceline.com’s famous Name Your Own Price® service, which can deliver the lowest prices available. Priceline.com also operates the following travel websites: Travelweb.com, Lowestfare.com, RentalCars.com and BreezeNet.com.