Expedia Inc. (EXPE) Thursday reported a first-quarter loss that widened from last year, hurt mainly by acquisition costs and hefty legal reserves related to a Hawaii tax court litigation. Nevertheless, earnings for the period trumped Street estimates, as revenues grew more-than-expected on strong growth in gross bookings. The online travel company's shares were down near five percent in after-hours trade.
Gross bookings for the quarter increased 16 percent from last year, aided mainly by a 28 percent growth in hotel room nights and 9 percent increase in air tickets. Average daily room rates and average airfares were essentially flat year-over-year.
First-quarter revenues grew 24 percent to $1.01 billion from $816.49 million last year. Analysts polled by Thomson Reuters expected revenues of $965.73 million for the quarter.
Expedia's revenue growth largely reflects increase in hotel room nights stayed, but was somewhat offset by a decrease in revenue per room night. Room nights stayed was up 28 percent, but revenue per room night was down 3 percent from last year.
International revenues for the quarter grew 36 percent, while U.S. Revenues grew 16 percent. International revenues represent 45 percent of total revenues.
Bellevue, Washington-based Expedia's first-quarter loss widened to $104.2 million or $0.77 per share from $3.3 million or $0.02 per share last year.
On an adjusted basis, earnings for the quarter dropped to $0.25 per share from $0.26 per share last year. Nevertheless, earnings for the period came in ahead of analysts' average estimate of $0.23 per share. Analysts' estimates typically exclude special items.
During the quarter, Expedia made a provision for an additional $60 million in connection with ongoing Hawaii excise tax litigation. In March 2013, Expedia completed the acquisition of trivago and incurred $67 million in expenses related to the deal.
EXPE closed Thursday's trading at $64.97, up $0.79 or 1.23%, on the Nasdaq. The stock, dropped $2.97 or 4.57%, in after hours.
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