July 26, 2013

Expedia Q2 net down 32% as higher costs offset revenue growth

Expedia's second-quarter earnings fell 32% as the online travel agent reported higher costs that offset growth in revenue. Revenue jumped 16% to $1.21 billion, mainly driven by an increase in hotel room nights stayed.

The company, citing sluggishness from its Hotwire car-rental site, said in April that it didn't expect profit growth until the second half of the year, and it kept steady its full-year projection of low double-digit adjusted earnings growth.

Large-scale technology upgrades have helped Expedia enhance its growth, even as it faces increased competition for Hotwire. The company, which also operates its namesake travel site and Hotels.com, acquired the Trivago stake in March, about a year after spinning off ad-based business TripAdvisor Inc. (TRIP).

During the quarter, overall gross bookings rose 13%, mostly driven by a 19% increase in Expedia's room nights booked and a 7% rise in air tickets. Domestic bookings increased 7%, while international bookings climbed 23%.

Get the full story at Expedia

Read also "Expedia admits that TripAdvisor and Booking.com are hurting it hard" at Tnooz, and "Expedia Gets Dinged by Former Subsidiary TripAdvisor" at The Wall Street Journal