Priceline Group reported its 3rd quarter 2017 financial results.
Gross travel bookings were USD 21.8 billion, an increase of 18% over a year ago (approximately 16% on a constant-currency basis).
The Group's gross profit for the 3rd quarter was $4.4 billion, a 22% increase from the prior year (approximately 19% on a constant-currency basis). International operations contributed gross profit in the 3rd quarter of $4.0 billion, a 23% increase versus a year ago (approximately 20% on a constant-currency basis). Net income in the 3rd quarter was $1.7 billion, a 240% increase versus the prior year, which included a $941 million goodwill impairment charge. Net income was $34.43 per diluted share, a 240% increase as compared to the prior year.
Non-GAAP net income in the 3rd quarter was $1.8 billion, a 19% increase versus the prior year. Adjusted EBITDA for the 3rd quarter was $2.2 billion, an 18% increase versus a year ago.
"The Priceline Group delivered solid growth and operating results during our seasonally busy third quarter," said Glenn Fogel, Chief Executive Officer of The Priceline Group. "Globally, our accommodation business booked 178 million room nights in the third quarter, up 19% over the same period last year. Booking.com showed continued momentum with approximately 1.5 million properties on its platform, up 41% over last year. This represents 26.9 million potentially bookable rooms, which we believe to be the largest, and most diverse, selection of instantly bookable accommodations in the world."
Guidance for the 4rd quarter of 2017 is as follows:
Priceline Group CEO Glenn Fogel commented on the company's investment in Meituan:
“China is a large and important market for us. Our Asia-based subsidiary, Agoda, had a commercial relationship with Meituan for some time, and we were asked to participate in the $4 billion financing round. And that was led by Tencent.”
“And along with Tencent, it was a list of super blue-chip financial investors, some of whom are investors in us in The Priceline Group. So when we were asked to participate in that, we thought that was a good use of our $450 million investment, and it's appropriate use for our shareholders' offshore cash. I think it's going to be a good investment for our company.”
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