Priceline.com Reports Financial Results for 3rd Quarter 2011
In the third quarter, Priceline's gross travel bookings of all travel services purchased by consumers, were $6.3 billion, an increase of 56.2% over a year ago. The Group had revenues in the 3rd quarter of $1.5 billion, a 45.0% increase over a year ago.
NORWALK, Conn., November 7, 2011. . . Priceline.com Incorporated (Nasdaq: PCLN) today reported 3rd quarter 2011 financial results for the Priceline Group. Third quarter gross travel bookings for the Group, which refers to the total dollar value, generally inclusive of all taxes and fees, of all travel services purchased by consumers, were $6.3 billion, an increase of 56.2% over a year ago.
The Group had revenues in the 3rd quarter of $1.5 billion, a 45.0% increase over a year ago. The Group's international operations contributed revenues in the 3rd quarter of $953 million, a 79% increase versus a year ago (approximately 68% on a local currency basis). The Group's gross profit for the 3rd quarter was $1.1 billion, a 65%increase from the prior year. International operations contributed gross profit in the 3rd quarter of $952 million, an 80% increase versus a year ago (approximately 68% growth on a local currency basis). The Group's operating income in the 3rd quarter was $616.4 million, an 83% increase from the prior year. The Group had GAAP net income applicable to common shareholders for the 3rd quarter of $469.5 million, or $9.17 per diluted share, which compares to $223.0 million or $4.41 per diluted share, in the same period a year ago.
Non-GAAP net income in the 3rd quarter was $512.6 million, an 88% increase versus the prior year.
Non-GAAP net income was $9.95 per diluted share, compared to $5.33 per diluted share a year ago. First Call analyst consensus for the 3rd quarter 2011 was $9.30 per diluted share. Adjusted EBITDA for the 3rd quarter 2011 was $644.5 million, an increase of 78% over a year ago. The section below entitled "Non-GAAP Financial Measures" provides a definition and information about the use of non-GAAP financial measures in this press release and the attached financial and statistical supplement reconciles non-GAAP financial information with the Group's financial results under GAAP.
“The Group’s businesses all enjoyed a strong 3rd quarter,” said Jeffery H. Boyd, President and Chief Executive Officer of the Priceline Group. “Our global hotel nights grew by 47% over last year, reflecting moderate deceleration from the 2nd quarter. We believe our retail hotel businesses at Booking.com, Agoda and priceline.com continued to take meaningful share in their respective markets during the quarter, though our Name Your Own Price hotel business is challenged by
increasing competition in the discount space.”
Mr. Boyd, continued, “The 3rd quarter reflected the first full quarter following the anniversary of the acquisition of TravelJigsaw in May of 2010. Our global rental car days were up 36% compared to last year, and TravelJigsaw days grew well in excess of that. Priceline.com’s airline ticketing business experienced its strongest quarterly growth in the last seven quarters, with ticket sales up 8%.”
Looking forward, Mr. Boyd said, “We are pleased with the solid momentum displayed by our brands in the 3rd quarter results and 4th quarter outlook, especially given the sheer size of the business and the uncertain macro-economic environment in which we are operating. We believe our brands have significant opportunity ahead through innovation and new market penetration and we intend to use our reach and resources to exploit that opportunity to better serve our customers.”
The Priceline Group said it was targeting the following for 4th quarter 2011:
Year-over-year increase in total gross travel bookings of approximately 39% -44%.
Year-over-year increase in international gross travel bookings of approximately 50% -55%
(an increase of approximately 49% -54% 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 27% to 32%.
Year-over-year increase in gross profit of approximately 42% to 47%.
Adjusted EBITDA of approximately $310 million to $330 million.
Non-GAAP net income of between $4.90 and $5.00 per diluted share.