The Priceline Group Reports Financial Results for 2nd Quarter 2014
NORWALK, Conn., August 11, 2014. . . The Priceline Group Inc. (NASDAQ: PCLN) today reported its 2nd quarter 2014 financial results.
Second quarter gross travel bookings for The Priceline Group (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 $13.5 billion, an increase of 34% over a year ago (approximately 32% on a local currency basis).
The Group's gross profit for the 2nd quarter was $1.9 billion, a 36% increase from the prior year. International operations contributed gross profit in the 2nd quarter of $1.65 billion, a 38% increase versus a year ago (approximately 36% on a local currency basis). The Group had GAAP net income applicable to common shareholders for the 2nd quarter of $576 million, or $10.89 per diluted share, which compares to $437 million or $8.39 per diluted share, in the same period a year ago.
Non-GAAP net income in the 2nd quarter was $667 million, a 31% increase versus the prior year. Non-GAAP net income was $12.51 per diluted share, compared to $9.70 per diluted share a year ago. FactSet consensus for the 2nd quarter 2014 was $12.06 per diluted share. Adjusted EBITDA for the 2nd quarter 2014 was $809 million, an increase of 30% 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 Priceline Group achieved strong results for the 2nd quarter as the summer travel season got off to a solid start for our brands,” said Darren Huston, President and CEO of the Priceline Group.
“We believe the Group delivered market-leading growth from both a top line and profitability perspective. Globally, our accommodation business booked 90 million room nights, up 29% over the same period last year.”
Looking forward, Mr. Huston said: “The business is performing well and we will continue to build our franchise by investing in customer experience, content expansion and market penetration. We believe that our recently-announced expanded partnership with Ctrip will complement these efforts."
"We are also pleased to welcome OpenTable to the Group and are excited by the opportunity to deliver exceptional online booking experiences for our customers and partners - including hotels, rental cars, airlines and now restaurants - worldwide.”
The Priceline Group said it was targeting the following for 3rd quarter 2014:
. Year-over-year increase in total gross travel bookings of approximately 19% - 29% (an increase of approximately 18% - 28% on a local currency basis).
. Year-over-year increase in international gross travel bookings of approximately 22% - 32% (an increase of approximately 21% - 31% on a local currency basis).
. Year-over-year increase in domestic gross travel bookings of approximately 10% - 15%.
. Year-over-year increase in revenue of approximately 15% - 25%.
. Year-over-year increase in gross profit of approximately 21% - 31%.
. Adjusted EBITDA of approximately $1.265 billion to $1.365 billion.
. Non-GAAP net income per diluted share between $19.60 and $21.10.