02-May-2011 4:26 PM
Expedia net profit down 12%
Analysis
Summary
- Expedia reports a 15% increase in revenue for Q1 2011, reaching USD822.2 million.
- Operating income and net income decreased due to higher expenses related to technology investments and international expansion.
- Operating income dropped by 4%, while net income dropped by 12% to USD52 million.
- The revenue growth was primarily driven by increased hotel revenue and advertising and media revenue.
- Hotel revenue accounted for 59% of total worldwide revenue, followed by advertising and media at 15% and air at 13%.
- Expedia's shares traded 1.4% higher following the announcement.
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
