Expedia's profit falls 4.8 percent in 3Q

Oct 31, 2008

Expedia Inc has reported a 4.8 percent drop in quarterly net profit even though bookings rose seven percent.

Published: 31 Oct 2008

Expedia Inc has reported a 4.8 percent drop in quarterly net profit even though bookings rose seven percent.

The company said its third-quarter net profit was $94.8 million, compared with $99.6 million a year earlier.

"Yes, it's a difficult environment, but that's everyone's news, and for travel any predictions about its depth or duration would be foolish," said Barry Diller, Expedia, Inc.'s chairman and senior executive.

"What is important for shareholders of Expedia to know is that the company is well capitalised, focused only on operating its sole travel services business, with no distractions, and a conviction that it will emerge stronger in every line of its business."

"Our sixth consecutive quarter of double digit room night growth and a robust advertising and media business drove respectable 10 percent revenue growth in this challenging environment," said Dara Khosrowshahi, Expedia, Inc.'s CEO and president. "Because the economic turmoil caused a broad pull back in travel spend in September and October, we have adjusted our investment and spending levels, and will push for further efficiencies in the fourth quarter and beyond as we look for maximum return for every dollar that we spend."