Third 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 $13.8 billion, an increase of 28% over a year ago (approximately 29% on a local currency basis).
The Group's gross profit for the 3rd quarter was $2.6 billion, a 32% increase from the prior year. International operations contributed gross profit in the 3rd quarter of $2.3 billion, a 33% increase versus a year ago (approximately 33% on a local currency basis). The Group had GAAP net income applicable to common shareholders for the 3rd quarter of $1.1 billion, or $20.03 per diluted share, which compares to $833 million or $15.72 per diluted share, in the same period a year ago.
Non-GAAP net income in the 3rd quarter was $1.2 billion, a 29% increase versus the prior year. Non-GAAP net income was $22.16 per diluted share, compared to $17.30 per diluted share a year ago. FactSet consensus for the 3rd quarter 2014 was $21.08 per diluted share. Adjusted EBITDA for the 3rd quarter 2014 was $1.4 billion, an increase of 28% 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 finished the summer travel season with market leading growth and strong operating performance,” said Darren Huston, President and CEO of The Priceline Group.
“Globally, our accommodation business booked 95 million room nights in the third quarter, up 27% over the same period last year. Booking.com continues to extend its lead as the world’s largest brand for booking accommodations, with over 540,000 hotels and other accommodations on the platform, up 52% over last year. Our rental car business grew rental car days by 18% over last year, an acceleration from 14% in the second quarter, led by improving results at both rentalcars.com and priceline.com.”
Looking forward, Mr. Huston said: “Our brands are performing well in a very competitive marketplace and against a mixed macro-economic backdrop, particularly in Europe. We intend to continue to make the smart investments for future growth, including broadening our offerings, building our brands and providing a superior experience to our customers, pre- and post-reservation, across all devices.”
The Priceline Group said it was targeting the following for 4th quarter 2014:
• Year-over-year increase in total gross travel bookings of approximately 8% - 15% (an increase of approximately 13% - 20% on a local currency basis).
• Year-over-year increase in international gross travel bookings of approximately 10% - 17% (an increase of approximately 16% - 23% 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 11% - 18%.
• Year-over-year increase in gross profit of approximately 17% - 24%.
• Adjusted EBITDA of approximately $625 million to $665 million.
• Non-GAAP net income per diluted share between $9.40 and $10.10.
