Expedia Group announced financial results today for the second quarter ended June 30, 2019.
Key Highlights
• Gross bookings increased $2.4 billion or 9% to $28.3 billion. Revenue increased 9% to $3.2 billion. Core OTA gross bookings increased 11% and revenue increased 10%.
• Net income increased $182 million and Adjusted EBITDA grew $105 million or 23%. Diluted EPS increased $1.20 and Adjusted EPS grew $0.39 or 29%.
• Total stayed lodging room nights increased 12% and Vrbo stayed property nights grew 8%.
• Expedia Group's core lodging platform included nearly 1.3 million properties available as of June 30, 2019, including approximately 570,000 integrated Vrbo listings.
• Year-to-date net cash provided by operating activities and free cash flow grew 32% and 31%, respectively.
Financial Summary
Gross Bookings & Revenue
For the second quarter of 2019, total gross bookings increased 9% (including 2 percentage points of negative foreign exchange impact), driven by growth in Expedia Partner Solutions, which includes the benefit from enterprise deals launched in late 2018, as well as increases at Brand Expedia and Hotels.com. Domestic gross bookings increased 11% and international gross bookings increased 7% (including 4 percentage points of negative foreign exchange impact).
For the second quarter of 2019, total revenue increased 9% (including 3 percentage points of negative foreign exchange impact), driven primarily by growth in Expedia Partner Solutions, Brand Expedia and Vrbo. Domestic revenue increased 13% and international revenue increased 5% (including 6 percentage points of negative foreign exchange impact).
Product & Services Detail
Lodging accounted for 71%, advertising and media accounted for 9%, air accounted for 7% and all other revenues accounted for the remaining 13%.
Lodging revenue increased 12% in the second quarter of 2019 on a 12% increase in room nights stayed driven by growth at Expedia Partner Solutions, Hotels.com and Brand Expedia.
Air revenue increased 2% in the second quarter of 2019 on a 10% increase in air tickets sold driven by growth at Expedia Partner Solutions, largely related to enterprise deals launched in late 2018, and Brand Expedia, partly offset by a 7% decrease in revenue per ticket, due to the reclassification of certain partner fees to other revenue, as well as negative impact from foreign exchange and a shift in product mix.
Advertising and media revenue increased 4% (including 4 percentage points of negative foreign currency impact) due to growth at Expedia Group Media Solutions, partly offset by a decline at trivago. Other revenue increased 5% in the second quarter of 2019 benefiting from the reclassification of certain partner fees from air revenue as well as growth in the travel insurance and car products.
Core OTAs
• Vrbo now offers over 1.3 million instantly bookable listings.
• Trivago increased the flexibility for advertisers to participate in the marketplace by introducing bid modifiers in selected markets. Advertisers can now adjust their bids for ‘time to travel’ and ‘length of stay.’
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