Expedia's net income jumps 55 percent in 3Q

AP News
Posted: Oct 28, 2010 4:50 PM
Expedia's net income jumps 55 percent in 3Q

Expedia Inc. said Thursday that higher travel bookings, average hotel rates and advertising revenue helped its third-quarter net income jump 55 percent from a year earlier.

The company, which operates Hotwire.com, Hotels.com, Tripadvisor and its namesake Expedia.com, said it earned $176.6 million, or 62 cents per share, for the quarter that ended Sept. 30. That's up from $117 million, or 40 cents per share, in the same quarter last year.

Revenue rose 16 percent to $987.9 million.

The results well exceeded Wall Street's average expectation for 58 cents per share on revenue of $944 million, according to a Thomson Reuters poll.

Expedia saw a sharp pullback in travel during the recession but said travel trends have improved in recent quarters. The company, based in Bellevue, Wash., reported that its gross bookings revenue grew 17 percent as airfares and hotel rates rose along with the number of transactions.

Advertising and media revenue jumped 40 percent.

The company also benefited from a lower tax rate for the quarter _ boosting its earnings per share by an estimated 6 cents.

Expedia shares rose 76 cents, more than 2 percent, in after-hours trading.