Orbitz said its first-quarter revenue rose 3.7%, driven by higher overall bookings and the recent acquisition of assets of the Travelocity Partner Network. However, it swung to a first-quarter loss because of a change in income tax provisions, the company said.
Though the Travelocity purchase helped revenue, “it's clear that (Orbitz is) continuing to execute, they're improving the balance sheet, and there's a lot of room for growth in terms of international penetration gains,” said Daniel Kurnos, an analyst with Benchmark Co.
Orbitz, which operates its namesake and CheapTickets brands in the United States and ebookers in Europe, has boosted revenue from hotel sales, which tend to be more profitable than airline tickets.
Quarterly revenue rose 4 percent to $210.3 million, compared with $206.5 million expected by analysts, according to Thomson Reuters I/B/E/S. Orbitz forecast revenue for the second quarter of $239 million to $245 million, compared with $233.3 million expected by analysts.
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