Expedia Group announced financial results today for the third quarter ended September 30, 2019.
Key Highlights
• Gross bookings increased $2.3 billion or 9% to $26.9 billion. Revenue increased 9% to $3.6 billion.
• Total stayed lodging room nights increased 11%.
• Expedia Group's net income declined 22% and Adjusted EBITDA was flat in the third quarter.
• Expedia Group exceeded 1.4 million properties available on its core lodging platform as of September 30, 2019, including over 650,000 integrated Vrbo listings.
• Year-to-date, Expedia Group repurchased 3.2 million shares for $418 million. Including the Liberty Expedia Holdings, Inc. transaction, Expedia Group has retired a total of 6.3 million shares.
• Year-to-date net cash provided by operating activities and free cash flow grew 14% and 5%, respectively. Excluding capital expenditures related to our Seattle headquarters, year-to-date free cash flow grew 15%.
Financial Summary
Gross Bookings & Revenue
For the third quarter of 2019, total gross bookings increased 9% (including 1 percentage point of negative foreign exchange impact), driven by growth in Expedia Partner Solutions, which includes the benefit from enterprise deals launched in late 2018, and Hotels.com. Domestic gross bookings increased 10% and international gross bookings increased 7% (including 3 percentage points of negative foreign exchange impact).
For the third quarter of 2019, total revenue increased 9% (including 1 percentage point of negative foreign exchange impact), driven primarily by growth at Expedia Partner Solutions, Hotels.com and Vrbo. Domestic revenue increased 11% and international revenue increased 6% (including 2 percentage points of negative foreign exchange impact).
Product & Services Detail
As a percentage of total worldwide revenue in the third quarter of 2019, lodging accounted for 73%, advertising and media accounted for 9%, air accounted for 6% and all other revenues accounted for the remaining 12%.
Lodging revenue increased 11% in the third quarter of 2019 driven by growth at Expedia Partner Solutions, Hotels.com and Vrbo. Total room nights stayed grew 11%, while revenue per room night was flat year over year as higher monetization at Vrbo offset lower average daily rates.
Air revenue decreased 3% in the third quarter of 2019 driven by a 10% decrease in revenue per ticket, partly offset by an 8% increase in air tickets sold. The decrease in revenue per ticket is primarily related to the reclassification of certain partner fees to other revenue and a shift in product mix. The increase in air tickets sold was driven by growth at Expedia Partner Solutions, largely related to enterprise deals launched in late 2018.
Advertising and media revenue increased 3% (including 3 percentage points of negative foreign currency impact) due to growth at Expedia Group Media Solutions, partly offset by a decline at trivago. Other revenue increased 7% in the third quarter of 2019 benefiting from inorganic impact related to an acquisition, the reclassification of certain partner fees from air revenue and growth in car products.
Core OTAs
Vrbo now offers over 2.1 million online bookable listings, including 1.4 million that are instantly bookable.
Expedia Group announced a deal to become the exclusive global optimized distributor of Marriott’s wholesale rates and availability. This single gateway solution provided by Expedia Partner Solutions, leverages the Expedia Group technology platform to eliminate the complexity and inefficiency of the wholesale redistribution model for Marriott hotels, providing travelers a consistent and reliable shopping experience.
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