Orbitz reports net income of $9.7 million

Online travel agency Orbitz Worldwide reported net income of $9.7 million for the second quarter, compared with net income of $10.3 million for the same period last year.

Published: 06 Aug 2010

Online travel agency Orbitz Worldwide reported net income of $9.7 million for the second quarter, compared with net income of $10.3 million for the same period last year.

Global gross bookings increased 17 percent year over year. This increase was due primarily to higher air fares and higher transaction volume.

Air gross bookings increased 21 percent and non-air gross bookings increased seven percent year over year.

Domestic gross bookings increased 17 percent and international gross bookings increased 19 percent year over year.

Net revenue was $193.5 million for the second quarter 2010, an increase of three percent year over year.

“Orbitz Worldwide’s second quarter results significantly exceeded our Adjusted EBITDA expectations, increasing seven percent year over year, to $48.1 million. We posted solid year over year improvements in gross bookings, transactions, and hotel room nights,” said Barney Harford, president & CEO of Orbitz Worldwide.

He added, “ebookers continued its strong performance with hotel room night growth of 58 percent. Both Orbitz for Business and our private label business also posted strong growth in transactions and hotel room nights.”

Some of the highlights were as follows:

  • Air net revenue was $70.9 million in the second quarter 2010, up three percent.
  • Hotel net revenue was $52.1 million in the second quarter 2010, up 13 percent year over year.
  • Advertising and media revenue decreased 13 percent year over year to $12.4 million, primarily due to a decline in revenue from membership discount programs. Effective March 31, 2010, the company ended the membership discount programme previously offered on its domestic websites.

Marketing expense

The company’s marketing expense is primarily comprised of online marketing costs, such as search and banner advertising, and offline marketing costs, such as television, radio and print advertising. Marketing expense in the second quarter 2010 was $55.3 million, an increase of three percent year over year. This increase was primarily due to higher online marketing spending at ebookers. Marketing expense as a percentage of net revenue for the second quarter 2010 was relatively flat year over year.

 
 
 

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