Summary
Booking Holdings Inc. (formerly priceline.com Incorporated) filed its 2008 annual report (10-K) on February 19, 2009. The report highlights a significant shift towards international revenue, with international operations accounting for approximately 58.4% of gross bookings and over two-thirds of operating income in 2008. This growth was primarily driven by the Booking.com brand in Europe. Despite this international expansion, the company faced challenges due to the ongoing worldwide recession, which negatively impacted travel demand, led to decreased hotel occupancy rates and average daily rates, and increased cancellation rates. The company continued to focus on its strategy to become the leading worldwide online hotel reservation service, leveraging its international presence and brand acquisitions like Agoda. Domestically, it aimed to maintain its position as a top online travel business for value-conscious travelers by enhancing its offerings and cross-selling opportunities. Key risks identified include the impact of the global recession, intense competition, foreign currency fluctuations, reliance on key suppliers, and potential legal and regulatory uncertainties, particularly concerning hotel occupancy taxes. The company also noted the potential dilutive effect of its convertible senior notes and the accounting changes related to convertible debt.
Financial Highlights
35 data points| Revenue | $1.88B |
| Cost of Revenue | $928.84M |
| Gross Profit | $955.97M |
| Operating Expenses | $666.50M |
| Operating Income | $289.47M |
| Interest Expense | $34.85M |
| Net Income | $182.25M |
| EPS (Basic) | $4.64 |
| EPS (Diluted) | $3.74 |
| Shares Outstanding (Basic) | 39.30M |
| Shares Outstanding (Diluted) | 48.67M |
Key Highlights
- 1International operations are a significant growth driver, representing 58.4% of gross bookings and over two-thirds of operating income in 2008.
- 2The company experienced a 53.2% increase in total gross bookings year-over-year, largely due to international expansion.
- 3The worldwide recession began to negatively impact the travel market in late 2008, leading to decreased demand, lower hotel rates, and increased cancellations.
- 4Booking.com and Agoda continue to be key international brands, contributing significantly to revenue and growth.
- 5The company is heavily reliant on its top hotel and airline suppliers, with the five largest hotel suppliers accounting for 63.2% of Name Your Own Price hotel room nights.
- 6Significant litigation related to hotel occupancy taxes across various jurisdictions remains an ongoing concern.
- 7The company faces intense competition from established online travel agencies and direct suppliers.
- 8Foreign currency exchange rate fluctuations, particularly the strengthening US dollar against the Euro and British Pound Sterling, began to negatively impact reported international results in late 2008.