Expedia announced financial results today for the quarter ended June 30, 2016.
Key Highlights
* Gross bookings increased $3.8 billion or 25% year-over-year, excluding eLong, to over $18.8 billion in the second quarter of 2016. Revenue increased 32% year-over-year to over $2.1 billion.
* Global lodging portfolio increased by 25,000 properties, or 20% year-over-year, bringing total hotel property count to over 307,000 available on Expedia, Inc. sites.
* On a standalone basis, trivago reached $201 million in revenue, an increase of 41% year-over-year.
* HomeAway delivered $172 million of revenue, representing an increase of 36% year-over-year on a standalone basis.
The acquisitions by Expedia of Orbitz Worldwide in the third quarter of 2015 and HomeAway in the fourth quarter of 2015, combined with the sale of Expedia’s stake in eLong in the second quarter of 2015, have had significant impact on Expedia’s consolidated financial and operating metrics.
For the second quarter of 2016, total gross bookings increased 25%, driven primarily by 17 percentage points of inorganic impact from acquisitions, as well as growth in the Core OTA business, including growth at Brand Expedia and Hotels.com.
Domestic gross bookings increased 31% and international gross bookings increased 16%. International gross bookings totaled $6.7 billion and accounted for 35% of worldwide bookings, compared with 38% in the second quarter of 2015.
Revenue increased 33%, driven primarily by 22 percentage points of inorganic impact from acquisitions and growth in the Core OTA business, including growth at Brand Expedia and Hotels.com, as well as at trivago.
Product & Services Detail (excluding eLong)
As a percentage of total worldwide revenue in the second quarter of 2016, hotel accounted for 61%, air accounted for 9%, advertising and media accounted for 9%, HomeAway accounted for 8% and all other revenues accounted for the remaining 13%.
Hotel revenue increased 14% in the second quarter of 2016 on a 20% increase in room nights stayed driven by the inorganic impact of acquisitions as well as the organic growth in Hotels.com and Brand Expedia, partially offset by a 5% decrease in revenue per room night.
Revenue per room night decreased primarily due to margin reductions aimed at expanding the size and availability of Expedia’s global hotel supply portfolio as well as increased promotional activities such as growing loyalty programs.
Average daily room rates (“ADRs”) decreased 1% year-over-year in the second quarter of 2016, primarily due to an unfavorable foreign exchange translation impact.
Air revenue increased 50% in the second quarter of 2016 on a 45% increase in air tickets sold, augmented by a 3% increase in revenue per ticket.
Read original report
