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