Priceline.com Reports Financial Results for 2nd Quarter 2012
Priceline.com Incorporated reported 2nd quarter 2012 financial results for the Priceline Group. Second quarter gross travel bookings for the Group were $7.3 billion, an increase of 26.8% over a year ago.
NORWALK, Conn., August 7, 2012. . . Priceline.com Incorporated (Nasdaq: PCLN) today reported 2nd quarter 2012 financial results for the Priceline Group. Second 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 $7.3 billion, an increase of 26.8% over a year ago (approximately 36% on a local currency basis).
The Group had revenues in the 2nd quarter of $1.3 billion, a 20.3% increase over a year ago. The Group's international operations contributed revenues in the 2nd quarter of $859 million, a 40.2% increase versus a year ago(approximately 53% on a local currency basis). The Group's gross profit for the 2nd quarter was $1.0 billion, a 34.0% increase from the prior year. International operations contributed gross profit in the 2nd quarter of $859 million, a 40.4% increase versus a year ago (approximately 53% growth on a local currency basis). The Group's operating income in the 2nd quarter was $458 million, a 41.2% increase from the prior year. The Group had GAAP net income applicable to common shareholders for the 2nd quarter of $352 million, or $6.88 per diluted share, which compares to $256 million or $5.02 per diluted share, in the same period a year ago.
Non-GAAP net income in the 2nd quarter was $405 million, a 43.2% increase versus the prior year. Non-GAAP net income was $7.85 per diluted share, compared to $5.49 per diluted share a year ago. Analyst consensus for the 2nd quarter 2012 was $7.37 per diluted share. Adjusted EBITDA for the 2nd quarter 2012 was $495 million, an increase of 41.8% 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 Priceline Group achieved solid results for the 2nd quarter despite economic uncertainty across Europe, Asia and the U.S. that intensified as the quarter progressed,” said Jeffery H. Boyd, President and Chief Executive Officer. “We believe the Group delivered market leading growth from both a top line and profitability perspective. Globally, our hotel business booked over 50 million hotel room nights, up 39% over the same period last year. Our global rental car business grew rental car days by 29% over last year, led by continued strong growth for rentalcars.com.”
Looking forward, Mr. Boyd said, “The Group's international hotel business continues to perform well in the face of difficult macro-economic conditions and the strengthening dollar, which put pressure on top-line growth rates. We will continue to build our franchise by investing in geographic expansion and acquisition of hotels and accommodations, product and service innovation, and customer acquisition.”
The Priceline Group said it was targeting the following for 3rd quarter 2012:
• Year-over-year increase in total gross travel bookings of approximately 10% - 18% (an increase of approximately 19% - 27% on a local currency basis).
• Year-over-year increase in international gross travel bookings of approximately 12% - 20% (an increase of approximately 23% - 31% on a local currency basis).
• Year-over-year increase in domestic gross travel bookings of approximately 5%.
• Year-over-year increase in revenue of approximately 9% - 15%.
• Year-over-year increase in gross profit of approximately 15% - 25%.
• Adjusted EBITDA of approximately $690 million to $765 million.
• Non-GAAP net income per diluted share of $11.10 to $12.10.