Expedia net result down 30% as costs bite
Online travel booking and reservations company Expedia reported a net profit of USD71.3 million for the three months ended 31-Dec-2010, but the result was down 30% year-on-year, due to higher taxes and increasing sales and marketing costs. Shares in Expedia rose 1% in trading yesterday.
The company reported a 16% improvement in revenue, to USD808.4 million, with gross bookings up 14%. Higher average airfares and hotel rates also contributed to the revenue improvement.
For the full year, Expedia reported revenue rose 13.1% year-on-year. Full year earnings were USD421.5 million, compared with USD299.5 million in 2009.
Selected aviation suppliers daily share price movements (% change): 10-Feb-2011