Expedia net profit down 12%
Expedia has reported a 15% increase in revenue for the three months to 31-Mar-2011 to USD822.2 million, but operating income and net income decreased due to increased expenses related to investments in technology and international expansion. Expedia shares traded 1.4% higher on Friday.
Operating income dropped 4%, while net income dropped 12% to USD52 million.
The revenue increase at the company was driven by an increase in hotel revenue and advertising and media revenue. As a percentage of total worldwide revenue in the first quarter of 2011, hotel accounted for 59%, advertising and media accounted for 15%, air accounted for 13% and all other revenue accounted for the remaining 13%.
Selected share price movements (% change): 29-Apr-2011