Online travel company Expedia, Inc. has shared that its fourth-quarter profit rose to $67.1 million from $25.2 million a year earlier.

Published: 15 Feb 2007

Online travel company Expedia, Inc. has shared that its fourth-quarter profit rose to $67.1 million from $25.2 million a year earlier.

Excluding one-time items, the company said income increased to $98.1 million, or 28 cents per share, from $72.7 million, or 20 cents per share a year earlier.

Revenue increased seven percent to $531.3 million for the fourth quarter from revenue of $494.7 million in the same period last year.

“Begun with adversity, 2006 was a year of change, challenge and investment that ended positively for Expedia,” said Barry Diller, Expedia, Inc.’s chairman and senior executive.

“We believed our results would improve, and they did in the form of 10 percent OIBA (Operating Income Before Amortisation) growth for the fourth quarter, with robust international growth, a stabilised revenue margin and efficient expense control. At the same time, we continued to make longer term strides for shareholders-fortifying our brand portfolio, expanding and stabilising supplier relations, extending our geographic reach in Europe and Asia-Pacific and continuing our commitment to capital efficiency by issuing debt and taking steps to reduce our share base nearly 15 percent, with an incremental authorisation for 20 million shares still outstanding. The result is an Expedia better positioned for sustained growth and value creation in 2007 and beyond,” said Diller.

“We continued our progress this quarter in stabilising the company’s operating profitability, resulting in OIBA at the high end of our expectations range for the year,” said Dara Khosrowshahi, Expedia, Inc.’s chief executive officer and president.

He added, “We enter 2007 with online travel’s vanguard brands, more than 50 unique points of sale across the globe and an intense commitment to innovation, but above all with a firm eye toward re-accelerating growth at our flagship point of sale, Expedia.com.”

For the full year 2006, the company reported the net income rose seven percent to $244.9 million from $228.7 million last year. On an adjusted basis, Expedia said net income declined six percent to $390.5 million from $415.8 million last year. Revenue for the year increased six percent to $2.24 billion from revenues of $2.12 billion last year, primarily driven by increased worldwide merchant hotel revenue, partially offset by a decline in domestic air revenue.