NORWALK, Conn., February 19, 2015. . . The Priceline Group Inc. (NASDAQ: PCLN) today reported its 4th quarter and full-year 2014 financial results. Fourth quarter gross travel bookings for The Priceline Group Inc. (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 $10.7 billion, an increase of 17% over a year ago (approximately 23% on a local currency basis).
The Group's gross profit for the 4th quarter was $1.7 billion, a 26% increase from the prior year. International operations contributed gross profit in the 4th quarter of $1.43 billion, a 24% increase versus a year ago (approximately 32% on a local currency basis). The Group had GAAP net income applicable to common shareholders for the 4th quarter of $452 million, or $8.56 per diluted share, which compares to $378 million or $7.14 per diluted share, in the same period a year ago.
Non-GAAP net income in the 4th quarter was $577 million, a 22% increase versus the prior year. Non-GAAP net income was $10.85 per diluted share, compared to $8.85 per diluted share a year ago. FactSet consensus for the 4th quarter 2014 was $10.10 per diluted share. Adjusted EBITDA for the 4th quarter 2014 was $712 million, an increase of 23% over a year ago.
For the full-year 2014, the Group had gross travel bookings of $50.3 billion, a 28% increase compared to 2013 (approximately 30% on a local currency basis). Gross profit for the Group in 2014 was $7.6 billion, a 33% increase from the prior year. International operations contributed full-year gross profit of $6.64 billion, a 32% increase versus the prior year (approximately 34% on a local currency basis). The Group had GAAP net income for full year 2014 of $2.4 billion, or $45.67 per diluted share, which compares to $1.9 billion or $36.11 per diluted share in 2013.
Non-GAAP net income for 2014 was $2.8 billion, a 29% increase versus the prior year. Non-GAAP net income was $53.31 per diluted share, compared to $41.72 per diluted share a year ago. Adjusted EBITDA for 2014 was $3.5 billion, an increase of 29% over a year ago.
“The Priceline Group finished 2014 with a strong 4th quarter, reporting solid hotel and rental car unit growth,” said Darren Huston, President and CEO of The Priceline Group. “International gross bookings growth of 27% on a local currency basis in the 4th quarter demonstrates the resilience of the business, despite an environment of economic uncertainty and foreign exchange volatility. The Group’s full year room night reservations of 346 million grew by 28%, leading to gross bookings for the Group of just over $50 billion.“
Looking forward, Mr. Huston said, “The Group’s brands are starting 2015 with strong momentum. We are investing in our brands to organically grow our core business for the long-term. We also continue to invest in OpenTable and our BookingSuite branded hotel marketing services. These investments have a more pronounced impact on profitability in our seasonally low first quarter, but are the right investments to plant seeds for future growth. Today we are also announcing that the Priceline Board has given us an additional authorization to repurchase up to $3 billion of our common stock. We believe that buying our stock is a wise investment of our capital and demonstrates our confidence in the long-term outlook for our business.”
The Priceline Group said it was targeting the following for 1st quarter 2015:
• Year-over-year increase in total gross travel bookings of approximately 2% - 9% (an increase of approximately 14% - 21% on a local currency basis).
• Year-over-year increase in international gross travel bookings of approximately 3% - 10% (an increase of approximately 17% - 24% on a local currency basis).
• Year-over-year increase in domestic gross travel bookings of approximately 0% - 5%.
• Year-over-year increase in revenue of approximately 4% - 11%.
• Year-over-year increase in gross profit of approximately 9% - 16% (an increase of approximately 21% -28% on a local currency basis).
• Adjusted EBITDA of approximately $475 million to $510 million.
• Non-GAAP net income per diluted share between $7.20 and $7.75.
