The Priceline Group Inc. (NASDAQ: PCLN) today reported its 4th quarter and full-year 2015 financial results. Fourth quarter gross travel bookings were $12.0 billion, an increase of 13% over a year ago (approximately 24% on a constant currency basis).
The Group's gross profit for the 4th quarter was $1.9 billion, a 12% increase from the prior year (approximately 23% on a constant currency basis). International operations contributed gross profit in the 4th quarter of $1.6 billion, a 12% increase versus a year ago (approximately 25% on a constant currency basis). The Group had GAAP net income applicable to common shareholders for the 4th quarter of $504 million, or $10.00 per diluted share, which compares to $452 million or $8.56 per diluted share, in the same period a year ago.
Non-GAAP net income in the 4th quarter was $641 million, an 11% increase versus the prior year. Non-GAAP net income was $12.63 per diluted share, compared to $10.85 per diluted share a year ago. FactSet consensus for the 4th quarter 2015 was $11.81 per diluted share. Adjusted EBITDA for the 4th quarter 2015 was $790 million, an increase of 11% over a year ago. The section below entitled "Non-GAAP Financial Measures" provides definitions and information about the use of non-GAAP financial measures in this press release, and the attached financial and statistical supplement reconciles non-GAAP financial information with the Group's financial results under GAAP.
For the full-year 2015, the Group had gross travel bookings of $55.5 billion, a 10% increase compared to 2014 (approximately 25% on a constant currency basis). Gross profit for the Group in 2015 was $8.6 billion, a 13% increase from the prior year (approximately 27% on a constant currency basis). International operations contributed full-year gross profit of $7.4 billion, a 12% increase versus the prior year (approximately 28% on a constant currency basis). The Group had GAAP net income for full-year 2015 of $2.6 billion, or $49.45 per diluted share, which compares to $2.4 billion or $45.67 per diluted share in 2014.
Non-GAAP net income for 2015 was $3.0 billion, a 6% increase versus the prior year. Non-GAAP net income was $58.33 per diluted share, compared to $53.31 per diluted share a year ago. Adjusted EBITDA for 2015 was $3.7 billion, an increase of 7% over a year ago.
"The Priceline Group finished 2015 with a strong 4th quarter, reporting accelerating growth in hotel room nights booked," said Darren Huston, President and CEO of The Priceline Group. "Globally, our accommodation business booked 99 million room nights in the fourth quarter, up 27% over the same period last year. International gross bookings growth accelerated to 29% on a constant currency basis and the Group's total gross profit grew by about 23% on a constant currency basis. Booking.com continues to expand and innovate and now has over 850,000 hotels and other accommodations in over 220 countries and territories across the globe, up 34% from last year."
Looking forward, Mr. Huston said, "The Group’s brands are starting 2016 with strong momentum. We will continue to invest in our brands to organically grow for the long term using our consistent ROI-driven investment philosophy of creating value."
The Priceline Group said it was targeting the following for 1st quarter 2016:
• Year-over-year increase in room nights booked of approximately 20% - 27%.
• Year-over-year increase in total gross travel bookings of approximately 12% - 19% (an increase of approximately 18% - 25% on a constant currency basis).
• Year-over-year increase in revenue of approximately 9% - 16%.
• Year-over-year increase in gross profit of approximately 14% - 21% (an increase of approximately 20% - 27% on a constant currency basis).
• Adjusted EBITDA of approximately $580 million to $620 million.
• Non-GAAP net income per diluted share between $9.00 and $9.60.
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