NORWALK, Conn., August 8, 2013. . . Priceline.com Incorporated (NASDAQ: PCLN) reported 2nd quarter 2013 financial results for The Priceline Group (the “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 its customers, were $10.1 billion, an increase of 38.0% over a year ago (approximately 38% on a local currency basis).
The Group's gross profit for the 2nd quarter was $1.38 billion, a 37.8% increase from the prior year. International operations contributed gross profit in the 2nd quarter of $1.2 billion, a 39.7% increase versus a year ago (approximately 39% on a local currency basis). The Group had GAAP net income applicable to common shareholders for the 2nd quarter of $437 million, or $8.39 per diluted share, which compares to $352 million or $6.88 per diluted share, in the same period a year ago.
Non-GAAP net income in the 2nd quarter was $508 million, a 25.6% increase versus the prior year. Non-GAAP net income was $9.70 per diluted share, compared to $7.85 per diluted share a year ago. FactSet consensus for the 2nd quarter 2013 was $9.38 per diluted share. Adjusted EBITDA for the 2nd quarter 2013 was $621 million, an increase of 25.5% over a year ago. The section below entitled "Non-GAAP Financial Measures" provides definitions 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 international and domestic businesses performed well in the quarter as the summer travel season got off to a strong start for our brands,” said Jeffery H. Boyd, Chairman and CEO of the Priceline Group. “We are particularly pleased by the Group's steady hotel room night growth and improving rental car unit growth, and with the growing momentum at the U.S. business of priceline.com.”
Looking forward, Mr. Boyd said: “Our brands are showing solid growth and we intend to continue to invest in content expansion, new market penetration and distribution given the opportunity we have to build our brands. We are also pleased to welcome KAYAK to the Group and are encouraged by the early returns on our work together.”
The Priceline Group said it was targeting the following for 3rd quarter 2013:
• Year-over-year increase in total gross travel bookings of approximately 27% - 34% (an increase of approximately 25% - 32% on a local currency basis).
• Year-over-year increase in international gross travel bookings of approximately 32% - 39% (an increase of approximately 30% - 37% on a local currency basis).
• Year-over-year increase in domestic gross travel bookings of approximately 5% - 10%.
• Year-over-year increase in revenue of approximately 23% - 30%.
• Year-over-year increase in gross profit of approximately 32% - 39%.
• Adjusted EBITDA of approximately $990 million to $1,055 million.
• Non-GAAP net income per diluted share between $15.30 and $16.30.
