European business lifts’s 4Q performance

Online travel company Incorporated shared that two factors contributed significantly to its “over-performance” in the fourth quarter.

Published: 12 Feb 2007

Online travel company Incorporated shared that two factors contributed significantly to its “over-performance” in the fourth quarter.

The company’s fourth-quarter net income rose to $13.2 million, or 33 cents per share, from $3.8 million, or nine cents per share, a year earlier, helped by a $3 million tax benefit relating to its business in the Netherlands. Revenue rose 27.5 percent to $260.1 million in the quarter.

According to president and chief executive officer Jeffery H. Boyd the first factor was the strong performance of, the company’s European business, which experienced gross travel bookings of $319.1 million, a year-over-year increase of 101 percent.

“During the quarter, successfully maintained high growth rates in continental Europe, enhanced the brand’s ability to market on a pan-European basis, and continued to grow its business between Europe and the United States. We believe that solid execution by’s management and employees continues to yield increased market share for our European business,” said Boyd.

He added, “Second (factor), high retail travel prices during the holidays created strong demand for’s money-saving domestic services, particularly our Name Your Own Price option. Fourth-quarter domestic gross travel bookings were up 12 percent year over year and merchant bookings, which include our opaque services, were up 18 percent.”

Shares of soared in aftermarket electronic trading Monday. The stock rose $2.77, or 6 percent, to $48.70 in the late session, after gaining 34 cents to close at $45.93 on the Nasdaq.

For full-year 2006, reported gross travel bookings of $3.3 billion, a 49.1% increase over full-year 2005. Full-year 2006 revenues were $1.1 billion versus $962.7 million a year ago. The GAAP net income was $72.5 million, or $1.68 per diluted share.

Looking towards 2007, Boyd said, “We are building our flagship brand in Europe,, on a foundation of outstanding inventory, true pan-European demand and a differentiated business model that we believe is better for both customers and suppliers. In the United States, our full-service travel offering adds choices and context to our deeply discounted opaque service, creating a unique customer experience and, in our opinion, the best travel value available. We believe these distinctive brand strengths served us well in 2006 and position us well for 2007.”

For full-year 2007, said that it expects to generate approximately $4 billion in gross travel bookings. said that it expects to earn approximately $2.60 to $2.90 of pro forma net income per diluted share for full-year 2007.

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