Expedia profit jumps more than 50 percent in 1st quarter on improved travel trends

By AP
Thursday, April 29, 2010

Expedia 1Q profit jumps 50 pct on travel increase

BELLEVUE, Wash. — Expedia Inc. reported late Thursday that increased revenue from advertising and a rebounding travel industry helped boost its profit more than 50 percent in the first quarter.

Expedia, based in Bellevue, Wash., said it earned $59.4 million, or 20 cents per share, for the quarter. That’s up from $39.4 million, or 14 cents per share, in the same quarter last year.

Adjusted for one-time items in both quarters, the company earned 26 cents per share — beating analyst expectations of 22 cents per share, according to Thomson Reuters.

Expedia’s revenue grew 13 percent to $718 million, falling short of analyst’s $722.4 million expectations.

The company — which operates travel sites such as Hotwire.com, Hotels.com, Tripadvisor and its namesake site — said revenue from advertising jumped 34 percent and transactions rose 18 percent during the quarter.

Expedia’s CEO Dara Khosrowshahi said travel is returning to normal after a sharp pullback in the recession.

Shares of Expedia rose 99 cents, or 4 percent, to $25.60 in after-hours trading.

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