Home > Home > Expedia, Inc. Reports Fourth Quarter and Full Year 2009 Results

Expedia, Inc. Reports Fourth Quarter and Full Year 2009 Results

02/13/2010| 5:34:48 PM| 中文

BELLEVUE, Wash.— February 11, 2010—Expedia, Inc. (NASDAQ: EXPE) today announced financial results for its fourth quarter and year ended December 31, 2009.

BELLEVUE, Wash.— February 11, 2010—Expedia, Inc. (NASDAQ: EXPE) today announced financial results for its fourth quarter and year ended December 31, 2009.

"Expedia today is announcing the inauguration of a dividend policy. Nothing otherwise could demonstrate our belief in the enduring strength of our business models and the sustainability of our cash flows as becoming a dividend paying company," said Barry Diller, Expedia, Inc.´s Chairman and Senior Executive.

“In 2009 we gained share and controlled costs in an enormously difficult market,said Dara Khosrowshahi, Expedia, Inc.’s CEO and President. ―To deliver record annual revenue and OIBA in this environment is an absolute testimony to our people. Looking forward, we are better positioned to excel in this extremely competitive industry than we have ever been.”

Please click here to download the full report.

Discussion of Results – Fourth Quarter 2009

Gross Bookings, Revenue & Revenue Margins

Gross bookings increased 26% (22% excluding the estimated impact from foreign exchange) for the fourth quarter of 2009 compared with the fourth quarter of 2008, driven primarily by 23% growth in transactions. Domestic bookings increased 19% and international bookings increased 38% (27% excluding foreign exchange).

Revenue increased 12% (5% excluding foreign exchange) for the fourth quarter, primarily driven by an increase in hotel and advertising and media revenues. Domestic revenue increased 1% while international revenue increased 33% (14% excluding foreign exchange). International revenue grew faster than domestic primarily driven by an increase in international revenue per room night combined with a slightly higher hotel room night growth rate, as well as higher air ticket growth with a smaller decrease in revenue per ticket. International advertising and media revenue also grew faster than domestic revenue.

Revenue as a percentage of gross bookings (―revenue margin‖) was 13.8% for the fourth quarter, a decrease of 163 basis points compared to the fourth quarter of 2008, primarily due to a reduction in traveler fees, partially offset by a favorable foreign currency impact. The year-over-year decrease in revenue margin in the fourth quarter was steeper than the decrease reported in the third quarter of 2009, primarily due to a lower decrease in average airfares, which affect gross bookings to a greater extent than revenue.

Products & Services Detail

Worldwide hotel revenue increased 16% for the fourth quarter primarily due to a 23% increase in room nights stayed, including rooms delivered as a component of packages and room nights booked through Venere. (which we acquired in September 2008), partially offset by a 6% decrease in revenue per room night. Revenue per room night declined largely due to a 9% decrease in average daily rates (―ADRs‖), including a reduction in traveler fees, partially offset by a favorable impact from foreign exchange.

Worldwide air revenue decreased 2% for the fourth quarter, primarily due to a 26% decrease in revenue per air ticket, substantially offset by a 32% increase in ticket volumes. Expedia.com. eliminated consumer booking fees on online air tickets beginning in March 2009, with certain other points of sale following at various dates into the third quarter of 2009, which primarily drove the decline in revenue per ticket. This elimination of fees on Expedia.com and other points of sale, combined with lower average ticket prices, contributed to the lift in our air ticketing volumes.

Advertising and media revenue (including net revenue from TripAdvisor. Media Network) increased 18% for the fourth quarter, driven by a 22% increase in third-party revenue for the TripAdvisor Media Network and an 11% increase in advertising revenue generated by our transaction sites. Advertising and media revenue accounted for 11% of our worldwide revenues in the fourth quarter. Other revenue (primarily car rentals and destination services) increased 7% for the fourth quarter, and accounted for 14% of worldwide revenues for the quarter.@@

Profitability

OIBA for the fourth quarter increased 19% to $163 million and increased 127 basis points as a percentage of revenue to 23.4%, as selling & marketing expense and cost of revenue increased at a slower rate than revenue, partially offset by growth in technology & content and general & administrative expenses at rates in excess of revenue growth. Operating income increased $3.0 billion primarily due to a $3.0 billion impairment of goodwill and intangible assets in the fourth quarter of 2008.

Adjusted net income for the fourth quarter increased $24 million compared to the prior year period primarily due to higher OIBA. Net income increased primarily due to the impairment of goodwill and intangibles in the prior year period. Fourth quarter adjusted EPS and diluted EPS were $0.30 and $0.35, respectively. Adjusted EPS increased 36% primarily due to higher adjusted net income.

Discussion of Results – Full Year 2009

Gross Bookings, Revenue & Revenue Margins

Gross bookings increased 3% (5% excluding the estimated impact from foreign exchange) in 2009 compared with 2008, driven primarily by 18% growth in transactions, substantially offset by lower prices for airline tickets and hotel room nights. Domestic bookings increased 1% and international bookings increased 5% (11% excluding foreign exchange).

Revenue increased 1% (2% excluding foreign exchange) for the year, primarily driven by an increase in hotel, advertising and media, and car rental revenues, partially offset by a reduction in air revenues. Domestic revenue decreased 4% while international revenue increased 9% (11% excluding foreign exchange). Domestic revenue growth trailed international growth primarily due to slower room night and air ticket growth, combined with a larger decrease in per unit revenues due to our various fee actions. International advertising and media revenue also grew faster than domestic revenue.

Revenue margin was 13.6% in 2009, a decrease of 26 basis points, primarily due to the reduction in traveler fees, the impact from loyalty programs and a greater mix of lower margin hotels, partially offset by lower air ticket prices and a reduction in the mix of lower margin air product.

Products & Services Detail

Worldwide hotel revenue increased 2% in 2009 primarily due to a 23% increase in room nights stayed, partially offset by a 17% decline in revenue per room night. Revenue per room night declined largely due to a 15% decrease in ADRs, including a reduction in traveler fees. Excluding room nights stayed through Venere, room nights grew 20% for the year.

Worldwide air revenue decreased 13% in 2009, primarily due to a 24% decrease in revenue per air ticket, partially offset by a 15% increase in ticket volumes. Ticket volume growth benefited from the elimination of booking fees on Expedia.com and other worldwide points of sale.

Advertising and media revenue (including net revenue from our TripAdvisor. Media Network) increased 10% in 2009, driven by a 21% increase in advertising revenue generated by our transaction sites and a 6% increase in third-party revenue for the TripAdvisor Media Network. Advertising and media revenue accounted for 11% of our worldwide revenues in 2009.

Other revenue (primarily car rentals and destination services) increased 2% in 2009 and accounted for 14% of worldwide revenues.

Profitability

OIBA increased 9% to $762 million and increased 201 basis points as a percentage of revenue to 25.8%, as selling & marketing expense and cost of revenue decreased compared to the increase in revenue, partially offset by growth in technology & content and general & administrative expenses at rates in excess of revenue growth. Operating income increased primarily due the impairment of goodwill and intangible assets in the fourth quarter of 2008.

Adjusted net income increased $36 million primarily due to higher OIBA and lower foreign exchange losses, partially offset by lower interest income and higher interest expense. Net income increased primarily due to the impairment of goodwill and intangible assets in the prior year period and the same factors impacting adjusted net income, partially offset by occupancy tax assessments and legal reserves, restructuring charges and a higher income tax provision. Full year adjusted EPS and diluted EPS were $1.38 and $1.03, respectively. Adjusted EPS increased 10% primarily due to higher adjusted net income.@@

Recent Highlights

Global Presence


-Gross bookings from Expedia, Inc.’s international businesses were $1.9 billion in the fourth quarter, accounting for 37% of worldwide bookings, up from 34% in the prior year period. International revenues were $283 million, representing 41% of worldwide revenue, up from 34% in the prior year period.

-Expedia. launched a new localized site in Mexico, offering hotels, car rentals, and destination services.

-TripAdvisor launched websites in Denmark, Turkey, and Mexico and expanded its presence in China with the acquisition of meta search engine Kuxun.cn. TripAdvisor also extended its award-winning flight meta-search offering to U.K. travelers, with choices from leading air carriers and the U.K.’s largest travel companies.

-Expedia.co.jp partnered with Airlink to launch 35,000 overseas tour package options to 44 cities worldwide.

-Egencia. expanded its services to Argentina, Hungary, Russia, Romania, United Arab Emirates, Singapore, Taiwan, Hong Kong and Uruguay, through the Egencia Global Alliance, a network of strategic partnerships with leading local travel management companies. Egencia grew its worldwide gross bookings 24% in the fourth quarter.

Brand Portfolio

-In November, Expedia.com eliminated phone booking fees on all flight, car rental, hotel and cruise reservations, becoming the only major online travel agency to offer fee-free telephone booking for air travel.

-Expedia.com unveiled its new branding campaign, with the tagline, ―Where You Book Matters.‖, as well as a new brand logo, and an integrated advertising campaign.

-TripAdvisor and its network sites Airfare Watchdog., CruiseCritic. and FlipKey. were recognized as Top Travel Websites of 2009 by Travel + Leisure magazine.

-Hotels.com was voted ―Best Online Hotel-Booking Site in Denmark,‖ at the Danish Travel Awards and received a bronze award at the Hospitality Sales & Marketing Association International’s advertising competition.

-The Market Metrix Hospitality Index ranked Hotwire. as the leader in customer satisfaction among hotel travel sites for the ninth quarter in a row.

-Expedia. Affiliate Network (EAN) signed an exclusive agreement to power hotel and package bookings for Air China’s websites in 27 markets worldwide. EAN also signed an agreement to power travel bookings for our first-ever Korean partner and Korea´s leading online hotel reservation site, Matei. In addition, yp.com has selected EAN to power travel bookings on its site.

-TripAdvisor Media Network announced a strategic agreement with Yahoo! to serve TripAdvisor. Check Rates functionality and Booking Buddy. Deals products to Yahoo! Travel.

Content and Innovation

-TripAdvisor and UNESCO partnered to create the TripAdvisor. World Heritage Campaign, engaging TripAdvisor’s 25 million monthly visitors to act on behalf of UNESCO to protect global World Heritage sites.

-The Expedia. CruiseShipCenters.’ CruiseDesk. application has been integrated into the Expedia.com call center, improving agents’ ability to assist customers in booking their cruise vacations.

-Egencia released its 2010 Corporate Travel Forecast and Hotel Negotiability Index, analyzing data in nearly 40 cities worldwide to help business-decision-makers gauge corporate travel program opportunities.

-TripAdvisor’s Business Listings customers can now include their URL, telephone number and email address in their TripAdvisor listing, enabling property managers to connect directly with millions of researching travelers.

Supply Portfolio

-Expedia, Inc. ended the year with approximately 114,000 total properties, including 64,000 merchant and 50,000 agency properties. In EMEA, the company now offers more than 54,000 hotels including over 23,000 merchant properties and over 30,000 agency properties (of which over 60% are direct agency relationships).

-Expedia and Choice Hotels International signed a new three-year agreement to include Choice Hotels properties on more than 80 Expedia and Hotels.com-branded sites.

-Expedia has signed a new multi-year agreement with Aeroflot, Russia’s largest airline. Aeroflot’s complete offering of fares, schedules, and inventory will now be available on all Expedia European points of sale.

-Expedia signed a global partnership agreement with Air Pacific Limited to offer their flights on all Expedia and Egencia sites beginning with points of sale in the U.S., U.K., Canada, Australia and New Zealand.

TAGS: expedia
©2016 广州力矩资讯科技有限公司 粤ICP备06070077号-2
Tell us more about yourself!