November 02, 2012

Priceline reports 36% growth in hotel room nights sold


The Priceline Group delivered solid growth and operating results in the 3rd quarter. While the company remains concerned about economic weakness across Europe, Asia and the U.S., Priceline intends to focus on solidifying its position as the world's largest and most profitable online hotel reservation service.

The Group had revenues in the 3rd quarter of $1.7 billion, a 17.4% increase over a year ago. The Group's international operations contributed revenues in the 3rd quarter of $1.2 billion, a 30.6% increase versus a year ago (approximately 42% on a local currency basis). The Group's gross profit for the 3rd quarter was $1.4 billion, a 26.9% increase from the prior year. International operations contributed gross profit in the 3rd quarter of $1.2 billion, a 30.6% increase versus a year ago (approximately 42% growth on a local currency basis). The Group's operating income in the 3rd quarter was $756 million, a 22.6% increase from the prior year. The Group had GAAP net income applicable to common shareholders for the 3rd quarter of $597 million, or $11.66 per diluted share, which compares to $469 million or $9.17 per diluted share, in the same period a year ago.

“The Priceline Group delivered solid growth and operating results in the 3rd quarter as growth in the second half of the quarter in our key European market exceeded our forecast. Globally our hotel business grew room nights by 36% over the same period last year, compared to 39% growth in the second quarter. Our rental car business grew rental car days by 35% over last year, an acceleration from 29% in the second quarter, led by improving results at priceline.com and continued strong growth from rentalcars.com,” said Jeffery H. Boyd, President and Chief Executive Officer of The Priceline Group.

Looking forward, Mr. Boyd said, “While we remain concerned about economic weakness across Europe, Asia and the U.S., the Group intends to focus on solidifying its position as the world's largest and most profitable online hotel reservation service by continuing to add hotels and other accommodations and better servicing our customers through constant innovation in our mobile and desktop sites.”

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