Priceline.com Reports Financial Results for 2nd Quarter 2010
Priceline.com had revenues in the 2nd quarter of $767.4 million, a 27.1% increase over a year ago. The Company's international operations contributed revenues in the 2nd quarter of $322.6 million.
NORWALK, Conn., Aug. 3 /PRNewswire-FirstCall/ -- Priceline.com Incorporated (Nasdaq: PCLN) today reported its financial results for the 2nd quarter 2010. Gross travel bookings for the 2nd quarter, which refers to the total dollar value, generally inclusive of all taxes and fees, of all travel services purchased by consumers, were $3.4 billion, an increase of 43.3% over a year ago.
Priceline.com had revenues in the 2nd quarter of $767.4 million, a 27.1% increase over a year ago. The Company's international operations contributed revenues in the 2nd quarter of $322.6 million, a 63.3% increase versus a year ago (approximately 68% on a local currency basis). Priceline.com's gross profit for the 2nd quarter was $445.3 million, a 45.9% increase from the prior year. The Company's international operations contributed gross profit in the 2nd quarter of $321.8 million, a 63.6% increase versus a year ago (approximately 68% growth on a local currency basis). The Company's operating income in the 2nd quarter 2010 was $173.2 million, a 58.3% increase from the prior year. Priceline.com had GAAP net income for the 2nd quarter of $115.0 million or $2.26 per diluted share, which compares to $67.0 million or $1.38 per diluted share in the same period a year ago.
Pro forma EBITDA for the 2nd quarter was $204.2 million, an increase of 61.8% over the prior year. Pro forma net income in the 2nd quarter was $158.2 million or $3.09 per diluted share, compared to $2.02 per share a year ago. First Call analyst consensus for the 2nd quarter 2010 was $2.65 per diluted share. The section below entitled "Non-GAAP Financial Measures" provides a definition and information about the use of pro forma financial measures in this press release and the attached financial and statistical supplement reconciles pro forma financial information with priceline.com's financial results under GAAP.
"Second quarter performance by the Priceline group of companies was once again driven by strong growth in our global hotel reservations, where we believe we gained market share for another quarter," said Jeffery H. Boyd, Priceline's President and CEO. "The group achieved a combined 48% year-over-year growth in hotel room nights booked. International gross travel bookings increased by 59% compared to prior year, or 67% on a local currency basis, due to increasing travel demand and an improvement in room rates. Domestic gross travel bookings grew by 20% driven by strong growth in hotel reservations. Growth in airline tickets and domestic rental car days was modest as our Name Your Own Price(R) airline and rental car services were hampered by reductions in capacity by suppliers."
"In May 2010, we acquired TravelJigsaw, a growing international car hire service, which has contributed $43.9 million of gross travel bookings in the 2nd quarter since acquisition. The TravelJigsaw business showed continued growth in the second quarter and we look forward to working with the team to build the business."
Looking forward, Mr. Boyd said, "We are pleased with the hotel transaction growth we are seeing worldwide, which we believe is being driven by geographic expansion, solid execution in promoting improved conversion on our websites and benefits of group-wide cooperation on integration initiatives. These factors, combined with growing Internet commerce and travel in some of our newer markets, resulted in resilience in the face of economic volatility and periodic travel disruptions, and we believe provide a foundation for growth over the long-term."
The Company also reiterated its expectation that gross travel bookings growth rates would progressively decline in the second half of 2010 as it compares to periods of relatively stronger business performance in the 2nd half of 2009.
Priceline.com said it was targeting the following for 3rd quarter 2010:
Year-over-year increase in total gross travel bookings of approximately 33% - 38%.
Year-over-year increase in international gross travel bookings of approximately 46% - 51% (an increase of approximately 57.5% - 62.5% on a local currency basis).
Year-over-year increase in domestic gross travel bookings of approximately 13%.
Year-over-year increase in revenue of approximately 29% - 34%.
Year-over-year increase in gross profit of approximately 43% - 48%.
Pro forma EBITDA of approximately $327 million to $337 million.
Pro forma net income of between $4.78 and $4.98 per diluted share.
About The Priceline Group of Companies
The Priceline Group of Companies (Nasdaq: PCLN) is a leader in global online hotel reservations, with approximately 61 million room nights booked in 2009. The Group is composed of four primary brands – Booking.com, priceline.com, Agoda.com and TravelJigsaw. The Priceline Group provides online travel services in 38 languages in 98 countries in Europe, North America, Asia, the Middle East and Africa.
Based in Amsterdam, Booking.com is a leading international online hotel reservation service operating in 87 countries in 36 languages. Booking.com offers its customers access to approximately 96,000 participating hotels worldwide.
In the U.S., priceline.com gives leisure travelers multiple ways to save on their airline tickets, hotel rooms, rental cars, vacation packages and cruises. In addition to getting compelling published prices, travelers can take advantage of priceline.com's famous Name Your Own Price(R) 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.
Bangkok-based Agoda.com is an Asian online hotel reservation service that offers hotel rooms around the world and is available in 30 languages. With headquarters in Manchester, UK, TravelJigsaw is a multinational car hire service, offering its reservation services in more than 4,000 locations in 80 countries. Customer support is provided in 20 languages.