Tag: Beat

Booking Revenue Beat Estimates on Summer Lift in Travel

(Bloomberg) — Booking Holdings Inc. reported quarterly revenue that was better than analysts’ estimates, buoyed by cost-cutting measures and increased summer travel that offered a respite before Covid-19 cases started surging again.



a person holding a cell phone: The logo for Booking Holdings Inc. is displayed on a smartphone in an arranged photograph taken in the Brooklyn borough of New York, U.S., on Sunday, May 10, 2020. In a matter of months, the coronavirus reset the clock on a decades-long aviation boom that's been one of the great cultural and economic phenomena of the postwar world.


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The logo for Booking Holdings Inc. is displayed on a smartphone in an arranged photograph taken in the Brooklyn borough of New York, U.S., on Sunday, May 10, 2020. In a matter of months, the coronavirus reset the clock on a decades-long aviation boom that’s been one of the great cultural and economic phenomena of the postwar world.

But Chief Executive Officer Glenn Fogel warned that a new wave of the pandemic around the world will continue to weigh on the online travel giant’s prospects.

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Revenue fell 48% to $2.6 billion in the third quarter, the Norwalk, Connecticut-based company said in a statement Thursday. Analysts had projected $2.54 billion, according to data compiled by Bloomberg. Still, it’s an improvement from the record 84% plunge in the second quarter. Booking reported a 43% fall in the number of room-night reservations compared with a year earlier. Gross travel bookings, which reflect all travel services booked by customers, fell 47% to $13.4 billion during the period.

“We were pleased to see positive third-quarter results, which we believe benefited greatly from some lifting of government lock-downs and the release of pent-up demand created by the almost complete cessation of travel during parts of the second quarter,” Fogel said in the statement. “However, Covid-19 case counts are now rising steeply in many parts of the world with corresponding increases in lock-downs and re-imposed travel restrictions that will continue to impact travel in the near-term.”

Booking, which runs five major travel brands including Priceline and Kayak, has been hammered by Covid-19’s impact on the industry. To stay afloat, the company cut a quarter of the workforce at its main Booking.com business and slashed advertising spending, in addition to applying for government aid. Competitors including TripAdvisor Inc. and Airbnb Inc. also announced job cuts amid the pandemic’s squeeze on travel.

Booking’s silver lining has been growth in domestic stays. The shift to remote work and a drop-off in business travel has fueled demand for alternative accommodations, or vacation rentals, as travelers opt for nearby “staycations.”

Still, Booking’s significant exposure to overseas markets — which comprise the vast majority of its revenue — could weigh on any recovery as European governments reinstate restrictions and curfews amid a second wave of the coronavirus.

The company’s outlook is “less certain amid rising cases” of Covid-19 as it “may hurt near-term travel demand”, according to Bloomberg Intelligence analyst Matthew Martino. Third-quarter profit, excluding some costs, fell 74% to $504 million or $12.27 a share. That missed the $14.58 a share analysts projected, according to data compiled by Bloomberg.

Shares gained 1.7% in extended trading after closing at $1768.31 in New York. The shares have fallen 14% this year.

(Updates shares in final paragraph. An earlier version of this story corrected the headline to reflect revenue

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Expedia Earnings Beat Estimates on Uptick in Summer Travel

(Bloomberg) — Expedia Group Inc. reported earnings that were better than analysts expected, reflecting an uptick in summer travel before Covid-19 cases began surging again, and the benefits of cost cuts earlier this year.



a close up of a screen: The Expedia


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The Expedia

Revenue fell 58% to $1.5 billion — the third consecutive quarterly contraction — for the three months ended Sept. 30, the Seattle-based online travel giant said in a statement Wednesday. Analysts had projected $1.39 billion, according to data compiled by Bloomberg. Gross bookings were $8.6 billion, down 68% compared with a year earlier but an improvement from the previous quarter’s 90% drop.

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Expedia withdrew its full-year forecast in March when lockdowns halted flights and travel globally. The pandemic hit at an already turbulent time for Expedia, which cut 3,000 jobs in February. Home-rental unit Vrbo, which competes with Airbnb Inc., has weathered the pandemic relatively better, benefiting from demand for long-term stays in rural locales as people sought respite from virus hot-spots in cities and took advantage of work-from-home flexibility.

“Travel demand continued to be significantly impacted by the virus in the third quarter, but the increased travel in the quarter along with progress on our cost initiatives led to improved financial results,” said Chief Executive Officer Peter Kern, who took over in April. “As the last several weeks have demonstrated, the travel industry and the world still face a prolonged and bumpy path to recovery, with increasing COVID-19 cases and uncertainty around vaccine and therapeutic timelines.”

Surging virus cases in the U.S. and Europe could derail Expedia’s recovery due to its dependence on hotels, airlines and corporate customers. Some experts predict this second, winter wave could be worse than the first.

“Expedia carries relatively high exposure to business travel under normal circumstances. We expect these volumes to remain depressed for as long as governments and firms advise against business travel,” said Dan Thomas, leisure sector senior analyst at Third Bridge Group.

The pandemic-induced travel lull has been indiscriminate across the industry and Expedia’s competitors have not been unscathed. TripAdvisor Inc. and Airbnb eliminated about a quarter of their workforce, and Booking Holdings Inc. was forced to apply for government aid.

Adjusted earnings before interest, taxes, depreciation and amortization were $304 million, down 67% from a year earlier. The adjusted loss per share was 22 cents, beating the average analyst estimate of an 84 cent loss.

The shares gained about 4% in extended trading in New York after closing at $98.50.

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