Home > > Expedia reports 8% growth in gross booking for 2019

Expedia reports 8% growth in gross booking for 2019

02/14/2020| 7:43:30 AM| 中文

The company expects the coronavirus will have USD 30-40 million impact to adjusted EBITDA in Q1.

Expedia Group announced financial results today for the fourth quarter and full year ended December 31, 2019. 

 “Since our management change in December, we have re-focused the company on our core operations which had suffered for much of 2019. We have rapidly moved to simplify how we operate and increase efficiency. These changes helped us exceed the high-end of our revised guidance range in 2019 and will contribute to accelerated profit growth in our underlying business in 2020. In addition, we are targeting $300-500 million of run-rate cost savings across our business. We are not providing a specific guidance range given uncertainty on how much cost savings we’ll recognize this year and the full effect of Coronavirus. However, taking these factors into account, we expect 2020 Adjusted EBITDA growth to be in the double-digits,” said Chairman Barry Diller and Vice Chairman Peter Kern. “More importantly, the actions we’re taking to simplify our business and drive cost efficiency will position Expedia Group for improved revenue growth and margin expansion for years to come.” 

The company expects the coronavirus will have USD 30-40 million impact to adjusted EBITDA in Q1.

Key Highlights

• Gross bookings and revenue each increased 8%, to $107.9 billion and $12.1 billion, respectively for the full year 2019. 

• Total stayed lodging room nights increased 11% for both the fourth quarter and full year 2019. 

• For full year 2019, Net income and Adjusted EBITDA grew 39% and 8%, respectively. 

• Net cash provided by operating activities and free cash flow grew 40% and 46%, respectively for the full year 2019 to $2.8 billion and $1.6 billion, respectively. 

• From early December through early February, Expedia Group repurchased 5.8 million shares for $634 million. For full year 2019, Expedia Group repurchased 5.6 million shares for $683 million.


Financial Summary & Operating Metrics- Fourth Quarter 2019


Financial Summary & Operating Metrics - Full Year 2019

Gross Bookings & Revenue

Fourth Quarter 2019: Total gross bookings increased 6% (foreign exchange impact was negligible), driven primarily by growth in Expedia Partner Solutions, which includes the benefit from enterprise deals launched in late 2018, and Hotels.com. Domestic gross bookings increased 7% and international gross bookings increased 4% (including 1 percentage point of negative foreign exchange impact). 

Full Year 2019: Total gross bookings increased 8% (including 2 percentage points of negative foreign exchange impact), driven primarily by growth in Expedia Partner Solutions, which includes the benefit from enterprise deals launched in late 2018, and Hotels.com. Domestic gross bookings increased 10% and international gross bookings increased 5% (including 4 percentage points of negative foreign exchange impact).

Fourth Quarter 2019: Total revenue increased 7% (including 2 percentage points of negative foreign exchange impact), driven primarily by growth in Expedia Partner Solutions and Hotels.com, as well as inorganic impact related to an acquisition. Domestic revenue increased 10% and international revenue increased 4% (including 1 percentage point of negative foreign exchange impact). 

Full Year 2019: Total revenue increased 8% (including 2 percentage points of negative foreign exchange impact), driven primarily by growth in Expedia Partner Solutions, Vrbo, Hotels.com and Brand Expedia. Domestic revenue increased 11% and international revenue increased 4% (including 3 percentage points of negative foreign exchange impact).

Product & Services Detail - Fourth Quarter 2019

As a percentage of total worldwide revenue in the fourth quarter of 2019, lodging accounted for 70%, advertising and media accounted for 9%, air accounted for 7% and all other revenues accounted for the remaining 14%. 

Lodging revenue increased 9% in the fourth quarter of 2019 on an 11% increase in room nights stayed driven by growth in Hotels.com and Expedia Partner Solutions, partly offset by a 2% decrease in revenue per room night.

Air revenue decreased 8% in the fourth quarter of 2019 driven by a 9% decrease in revenue per ticket. Air tickets sold were flat year over year. The decrease in revenue per ticket is primarily related to a shift in product mix and changes in classification of certain fees. 

Advertising and media revenue increased 4% (including 2 percentage points of negative foreign exchange impact) in the fourth quarter of 2019 due to growth at Expedia Group Media Solutions, partly offset by declines at trivago. 

Other revenue increased 11% in the fourth quarter of 2019 benefiting from inorganic impact related to an acquisition and growth in car products. 

Product & Services Detail - Full Year 2019 

As a percentage of total worldwide annual revenue, lodging accounted for 70%, advertising and media accounted for 9%, air accounted for 7% and all other revenues accounted for the remaining 14%. Lodging revenue increased 10% in 2019 on an 11% increase in room nights stayed driven by growth in Hotels.com, Expedia Partner Solutions and Brand Expedia, partly offset by a 1% decrease in revenue per room night. 

Air revenue decreased 1% in 2019 driven by an 8% decrease in revenue per ticket, mostly offset by a 7% increase in air tickets sold. The decrease in revenue per ticket is primarily related to changes in classification of certain fees, a shift in product mix and a negative impact from foreign exchange. The increase in air tickets sold was driven by growth at Expedia Partner solutions, largely related to enterprise deals launched in late 2018. 

Advertising and media revenue increased 1% (including 3 percentage points of negative foreign exchange impact) in 2019 due to growth at Expedia Group Media Solutions, largely offset by declines at trivago. 。

Other revenue increased 6% in 2019 benefiting from inorganic impact related to an acquisition and the reclassification of certain partner fees from air revenue.

Recent Highlights

• Expedia Group's core lodging platform included nearly 1.6 million properties available as of December 31, 2019, including over 765,000 integrated Vrbo listings. Vrbo offers over 2.1 million online bookable listings, now including approximately 1.5 million that are instantly bookable. 

• Expedia Group executed commercial agreements with Turkish Airlines and Alaska Airlines. 

• During 2019, over 40% of transactions across Expedia Group’s consumer OTA brands were booked via mobile. Additionally, total app transactions across the Expedia Group consumer OTA brands increased over 40% year over year in 2019.

Core OTA

• Vrbo.com rolled out to Mexico and Canada, making Vrbo the flagship brand and point of sale across all of North America with multilingual and multi-currency support.

• Trivago continues its integration of alternative accommodation listings, expanding to over 3.3 million available on the platform as of the end of 2019.

Read Original Report

TAGS: Expedia | OTA | financial report
©2019 广州力矩资讯科技有限公司 粤ICP备06070077号-2
Tell us more about yourself!