Summary of Expedia's 3Q13 Earnings Conference Call
On Wednesday, October 30th, Expedia Inc. (NASDAQ: EXPE) had their 3Q13 Earnings Conference Call.
Expedia's CEO Dara Khosrowshahi begun managements discussion on earnings, "We're pleased to deliver a strong Q3, showing solid top line and bottom line trends, thus setting us for a good finish to the year."
Third Quarter Results Reported Include:
- 17 percent of overall revenue growth mainly came from Expedia, trivago, and Hotels.com.
- Hotel business drove performance with room night growth at 20 percent YoY.
- Domestic room nights were up 12 percent and international room nights increased 28 percent.
- Revenue growth declined 7 percent. Factors influencing this decline include mix shifts to Asia, growth from hotel chain partners and growth in loyalty programs.
- Advertising and media revenue grew substantially. CFO Mark Okerstrom commented that is was due to "inorganic growth from trivago which represented approximately 6 percentage points of our total revenue growth for the quarter."
- Revenue and profitability remain down.
- Tech and content expense increased 14 percent in the 3Q.
- Expedia deployed more than $1 billion towards acquisitions and share repurchases.
Specific Division Results and Products:
- TripAdvisor channel has improved since the initial global transition to metasearch in 2Q and was relatively stable in the 3Q.
- Khosrowshahi commented, "Brand Expedia performance continues to be robust, and we're pleased with our agreement to our Travelocity's U.S. and Canadian sites, including providing the underlying supply across product lines along with the related customer service."
- eLong continues to grow in the Chinese market with a strong focus on the mobile channel.
- trivago is recognized as the most recognized hotel metasearch brand in Europe.
- Okerstrom reported, "Hotels.com continues to drive conversion gains. Obviously, having the Expedia Traveler Preference program is starting to help us with conversion."
- Expedia recently introduced the air path on their app and on mobile web.
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