Booking.com records a 97.9% increase in gross travel bookings
Published: 09 Nov 2007
Priceline.com had GAAP revenues of $417.3 million, a 33.1% increase over a year ago. Its GAAP gross profit for the quarter was $202.3 million, a 63.8% increase from the prior year.
Priceline.com had GAAP net income for the 3rd quarter 2007 of $104.4 million or $2.27 per diluted share, which compares to $47.8 million or $1.05 per diluted share in the same period a year ago.
GAAP net income for the quarter 2007 was positively affected by a $47.9 million non-cash tax benefit from reversing a portion of priceline.com's deferred tax asset valuation allowance in the period. GAAP net income for the third quarter 2006 was positively affected by a similar $28.1 million non-cash tax benefit.
"Priceline.com's over-performance in the third quarter was driven by a combination of what we believe to be continued market-leading growth in our Booking.com international business and strong quarterly results from our domestic product lines," said priceline.com President and Chief Executive Officer Jeffery H. Boyd.
"Despite increasingly challenging quarterly comparables, Booking.com recorded a 97.9% increase in gross travel bookings compared to a year ago. Booking.com's team has been very effective in growing its business throughout Europe and in the U.S. and other international markets."
Boyd continued, "During the third quarter, priceline.com's domestic gross travel bookings increased by 19% on increasing merchant hotel and rental car sales and a 23% increase in airline ticket sales principally tied to our no-booking-fee promotion. Despite the loss of margin on retail ticket sales, year-over-year domestic operating margins were up substantially."
Looking forward, Boyd said, "Priceline is directing its key assets and resources to building the leading worldwide online hotel business. Our results this year reflect the strength of our products and operations. They also reflect the benefits of our businesses supporting each other by sharing regional demand and hotel supply, technology and business know-how. With good momentum in Europe and the US, we believe the Agoda transaction, also announced today, represents a positive step in developing the same supportive dynamics in Asia, which we believe will help us build a meaningful presence in that important market."