NORWALK, Conn., November 1, 2012. . . Priceline.com Incorporated (Nasdaq: PCLN) today reported 3rd quarter 2012 financial results for the Priceline Group. Third quarter gross travel bookings for the Group, which refers to the total dollar value, generally inclusive of all taxes and fees, of all travel services purchased by
consumers, were $7.8 billion, an increase of 25.2% over a year ago (approximately 34% on a local currency basis).
The Group had revenues in the 3rd quarter of $1.7 billion, a 17.4% increase over a year ago. The Group's international operations contributed revenues in the 3rd quarter of $1.2 billion, a 30.6% increase versus a year ago (approximately 42% on a local currency basis). The Group's gross profit for the 3rd quarter was $1.4 billion, a 26.9% increase from the prior year. International operations contributed gross profit in the 3rd quarter of $1.2 billion, a 30.6% increase versus a year ago (approximately 42% growth on a local currency basis). The Group's operating income in the 3rd quarter was $756 million, a 22.6% increase from the prior year. The Group had GAAP net income applicable to common shareholders for the 3rd quarter of $597 million, or $11.66 per diluted share, which compares to $469 million or $9.17 per diluted share, in the same period a year ago.
Non-GAAP net income in the 3rd quarter was $638 million, a 24.5% increase versus the prior year. Non-GAAP net income was $12.40 per diluted share, compared to $9.95 per diluted share a year ago. Analyst consensus for the 3rd quarter 2012 was $11.82 per diluted share. Adjusted EBITDA for the 3rd quarter 2012 was $781 million, an increase of 21.2% over a year ago. The section below entitled "Non-GAAP Financial Measures" provides a definition 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 solid growth and operating results in the 3rd quarter as growth in the second half of the quarter in our key European market exceeded our forecast. Globally our hotel business grew room nights by 36% over the same period last year, compared to 39% growth in the second quarter. Our rental car business grew rental car days by 35% over last year, an acceleration from 29% in the second quarter, led by improving results at priceline.com and continued strong growth from rentalcars.com,” said Jeffery H. Boyd, President and Chief Executive Officer of The Priceline Group.
Looking forward, Mr. Boyd said, “While we remain concerned about economic weakness across Europe, Asia and the U.S., the Group intends to focus on solidifying its position as the world's largest and most profitable online hotel reservation service by continuing to add hotels and other accommodations and better servicing our customers through constant innovation in our mobile and desktop sites.”
The Priceline Group said it was targeting the following for 4th quarter 2012:
• Year-over-year increase in total gross travel bookings of approximately 21% - 28% (an increase of approximately 22% - 29% on a local currency basis).
• Year-over-year increase in international gross travel bookings of approximately 27% - 35% (an increase of approximately 28% - 36% on a local currency basis).
• Year-over-year domestic gross travel bookings approximately flat to prior year.
• Year-over-year increase in revenue of approximately 15% - 22%.
• Year-over-year increase in gross profit of approximately 26% - 33%.
• Adjusted EBITDA of approximately $381 million to $421 million.
• Non-GAAP net income per diluted share of $6.12 to $6.57.
The Company believes that concerns related to sovereign debt and the viability of the Euro have negatively impacted historical operating results and are likely to impact future results. Given the uncertainty surrounding worldwide economic conditions, particularly in Europe where much of the Company's business is concentrated, the company believes the variability around its guidance is elevated.