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 $14.8 billion, an increase of 7% over a year ago (approximately 22% on a constant currency basis). The Group's gross profit for the 3rd quarter was $2.9 billion, a 12% increase from the prior year (approximately 29% on a constant currency basis). International operations contributed gross profit in the 3rd quarter of $2.6 billion, an 11% increase versus a year ago (approximately 29% on a constant currency basis). The Group had GAAP net income applicable to common shareholders for the 3rd quarter of $1.2 billion, or $23.41 per diluted share, which compares to $1.1 billion or $20.03 per diluted share, in the same period a year ago.
Non-GAAP net income in the 3rd quarter was $1.3 billion, a 10% increase versus the prior year. Non-GAAP net income was $25.35 per diluted share, compared to $22.16 per diluted share a year ago. FactSet consensus for the 3rd quarter 2015 was $24.21 per diluted share. Adjusted EBITDA for the 3rd quarter 2015 was $1.6 billion, an increase of 12% versus 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 delivered strong growth and operating results during its high travel season,” said Darren Huston, President and CEO of The Priceline Group. “Globally, our accommodation business booked a record 116 million room nights in the 3rd quarter, up 22% over the same period last year. Gross profit grew 29% on a constant currency basis. Booking.com showed continued positive momentum with over 820,000 properties on its platform, up 38% over last year. This represents over 21 million potentially bookable rooms, the largest, and most diverse, selection of directly bookable accommodations in the world.”
Looking forward, Mr. Huston said, “The Group’s mission is to help people experience the world. We continue to be the most valuable platform in the world exclusively dedicated to this pursuit. We will continue to focus on making the right investments across our six brands - in people, systems, and demand - to continue to profitably grow our business.”
The Priceline Group said it was targeting the following for 4th quarter 2015:
• Year-over-year increase in total gross travel bookings of approximately 1% - 8% (an increase of
approximately 13% - 20% on a constant currency basis).
• Year-over-year increase in international gross travel bookings of approximately 3% - 10% (an increase of approximately 17% - 24% on a constant currency basis).
• U.S. gross travel bookings are expected to decrease by 5% - 10% as compared to 4th quarter 2014.
• Year-over-year increase in revenue of approximately 1% - 8%.
• Year-over-year increase in gross profit of approximately 3% - 10% (an increase of approximately 14% -21% on a constant currency basis).
• Adjusted EBITDA of approximately $710 million to $760 million.
• Non-GAAP net income per diluted share between $11.10 and $11.90.
Non-GAAP guidance for the 4th quarter 2015:
• excludes non-cash amortization expense of intangibles,
• excludes non-cash stock-based employee compensation expense,
• excludes non-cash interest expense related to the amortization of debt discount and gains or losses on arly debt extinguishment, if any, related to cash-settled convertible debt,
• excludes the impact, if any, of significant charges or benefits associated with judgments, rulings and/or ettlements related to travel transaction tax (e.g., hotel occupancy taxes, excise taxes, sales taxes, etc.) poceedings,
• excludes the impact, if any, of significant costs related to acquisitions,
• excludes non-cash income tax expense and reflects the impact on income taxes of certain of the nonGAAP djustments, and
• includes the dilutive impact of unvested restricted stock units and performance share units because nonGAAP net income has been adjusted to exclude stock-based employee compensation.2015.
