Priceline.com Reports Financial Results For 3rd Quarter 2008
Thursday November 6: NORWALK, Conn.--(BUSINESS WIRE)--Priceline.com Incorporated? (Nasdaq: PCLN - News) today reported its financial results for the 3rd quarter 2008.
Priceline.com had GAAP revenues in the 3rd quarter of $561.6 million, a 34.6% increase over a year ago. The Company’s international operations contributed revenues in the 3rd quarter of $223.7 million, a 69.7% increase versus a year ago (approximately 63% growth on a local currency basis). GAAP gross profit for the 3rd quarter was $316.1 million, a 56.2% increase from the prior year. The Company’s international operations contributed gross profit in the 3rd quarter of $222.5 million, a 70.0% increase versus a year ago (approximately 63% growth on a local currency basis). Priceline.com had GAAP net income for the 3rd quarter of $88.0 million or $1.81 per diluted share, compared to GAAP net income of $104.4 million or $2.27 per diluted share in the 3rd quarter 2007. GAAP net income for the 3rd quarter of 2007 was positively affected by a non-cash tax benefit in the amount of $47.9 million, from reversing a portion of priceline.com’s deferred tax asset valuation allowance in the period.
Priceline.com reported pro forma revenues in the 3rd quarter of $561.6 million, a 34.7% increase over a year ago. Pro forma gross profit for the 3rd quarter was $316.1 million, an increase of 56.5% over the same period in the prior year. Pro forma EBITDA for the 3rd quarter 2008 amounted to $152.4 million, an increase of 69.4% over a year ago. Pro forma net income in the 3rd quarter was $116.8 million, or $2.39 per diluted share, an increase of 51.3% over a year ago.
“Priceline delivered strong growth in the United States and in our international business despite deteriorating global economic conditions towards the end of the quarter,” said Jeffery H. Boyd, priceline.com’s President and Chief Executive Officer. “Our domestic gross bookings grew at what we believe is a market-leading 32.8% as our value brand and low prices appealed to cost-conscious consumers and suppliers used our opaque distribution to move unsold inventory in the face of slowing demand. Our international operations generated gross bookings growth of 58.6% (approximately 45% growth on a local currency basis) in the 3rd quarter, with Booking.com growing its supplier base by 50% year-over-year to approximately 57,000 hotels and Booking.com and Agoda.com continuing to build the business in Asia.”
Mr. Boyd continued, “While we are proud of the results achieved in the third quarter, evidence of global economic weakness became more pronounced in our international business in late September and October, particularly the substantial decline in the value of the Euro and decreasing transaction growth rates and hotel average daily rates tied to softening hotel demand and occupancy. The velocity of economic change in this environment makes it difficult to precisely predict the future trajectory of any business. However, we believe priceline.com’s brands are well-positioned to compete in economic down-cycles and we intend to continue building our business around the world to maximize our participation in the global secular movement of travel planning and purchase to the internet.”
Priceline.com said it was targeting the following for 4th quarter 2008:
· Year-over-year increase in gross travel bookings of approximately 7.5 – 17.5%.
· Year-over-year increase in international gross travel bookings of approximately 0 - 10% (approximately 10 – 20% on a local currency basis).
· Year-over-year increase in revenue of approximately 12 - 14%.
· Year-over-year increase in pro forma gross profit of approximately 12.5 – 17.5%.
· Pro forma EBITDA of approximately $60 million to $66 million.
· Pro forma net income of between $1.00 and $1.10 per diluted share.
Given the current macro-economic conditions, the Company noted that its actual performance during the 4th quarter 2008 against the guidance above would be subject to greater variability than it had been in the past.
About Priceline.com(R) Incorporated
Priceline.com Incorporated (Nasdaq: PCLN - News) www.priceline.com provides online travel services in 25 languages in over 70 countries in Europe, North America, Asia, the Middle East and Africa. Included in the priceline.com family of companies is 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 70 countries in 19 languages and offers its customers access to approximately 57,000 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.