February 16, 2017

TripAdvisor profit hit by hotel sales, marketing

TripAdvisor said sagging hotel revenue and rising marketing costs pressured fourth-quarter results. As competition heats up from sites ranging from Kayak to Airbnb, TripAdvisor has been trying to beef up its offerings while spending more on advertising.

Shares, which have fallen 11% in the past 12 months, tumbled 5.3% after hours to $49.41.

For the three month period ending December 31, hotel sales fell 3.1% to $252 million while selling and marketing expenses climbed 18.6% to $172 million, though total expenses eased 8.4%.

For the quarter, the company reported a profit of $1 million, or a penny a share, down from $3 million, or 2 cents a share, a year earlier. Excluding certain items, profit per share slipped to 16 cents from 45 cents the previous year.

Revenue rose 2.3% to $316 million.

Get the full story at Reuters and TripAdvisor