Priceline Group‘s third quarter gross travel bookings were USD 18.5 billion, an increase of 25% YoY. Gross profit for the 3rd quarter was USD 3.6 billion, a 22% increase from the prior year. International operations contributed gross profit in the 3rd quarter of USD 3.3 billion, a 25% increase versus a year ago.
Net income in the 3rd quarter was USD 506 million, a 58% decrease versus the prior year. Net income was USD 10.13 per diluted share, a 57% decrease as compared to the prior year. Net income and net income per diluted share for the 3rd quarter were negatively impacted by a non-cash charge of USD 941 million relating to an impairment of OpenTable's goodwill. The impairment charge is a result of a change in business strategy as it relates to OpenTable's international expansion and other growth opportunities.
Adjusted EBITDA for the 3rd quarter 2016 was USD 1.9 billion, an increase of 19% versus a year ago.
“The Priceline Group brands executed well during our peak summer travel season,” said Jeffery H. Boyd, Chairman and Interim Chief Executive Officer of The Priceline Group. “Globally, our accommodation business booked 150 million room nights in the 3rd quarter, up 29% over the same period last year. The acceleration in room night growth demonstrates the favorable market in which we operate as well as the value of our diverse global platform.”
Looking forward to the 4th quarter, Mr. Boyd said, “We will continue to invest in smartly marketing our brands and in the tools and technology that benefit both our customers and partners in the online travel marketplace. We also look forward to pushing ahead with OpenTable to build on their strong brand with a strategy that supports both building the core business and international expansion at a more measured pace.”
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