Summary
Booking Holdings Inc. (formerly The Priceline Group Inc.) reported strong financial performance for the year ending December 31, 2017, driven by its global online travel reservation services. The company operates a diverse portfolio of brands including Booking.com, Priceline.com, KAYAK, Agoda.com, Rentalcars.com, and OpenTable, with a significant majority of its gross profit (approximately 89%) generated from international operations, primarily Booking.com. Revenue growth was robust, and the company highlighted its strategic focus on providing consumers with optimal choices and prices, enhancing the user experience, and fostering mutually beneficial partnerships with service providers. Key financial highlights for 2017 include substantial growth in gross profit, a significant increase in advertising spend to drive brand awareness and customer acquisition, and a solid balance sheet. The company also navigated evolving accounting standards, particularly regarding revenue recognition, and continued its strategic investments in technology and brand building. Despite facing intense competition and macroeconomic uncertainties, Booking Holdings demonstrated resilience and a clear strategy for continued expansion and market leadership in the online travel sector.
Financial Highlights
53 data points| Revenue | $12.68B |
| Cost of Revenue | $242.00M |
| Gross Profit | $12.44B |
| Operating Expenses | $7.90B |
| Operating Income | $4.54B |
| Interest Expense | $254.00M |
| Net Income | $2.34B |
| EPS (Basic) | $47.78 |
| EPS (Diluted) | $46.86 |
| Shares Outstanding (Basic) | 48.99M |
| Shares Outstanding (Diluted) | 49.95M |
Key Highlights
- 1Company rebranded from The Priceline Group Inc. to Booking Holdings Inc. on February 21, 2018.
- 2International operations, primarily Booking.com, accounted for approximately 89% of consolidated gross profit in 2017.
- 3Total revenues grew 18.0% to $12.68 billion in 2017, with agency revenues showing strong growth of 21.7%.
- 4Gross profit increased by 20.5% to $12.43 billion in 2017, with gross margins improving to 98.0%.
- 5Significant investment in marketing, with performance advertising at $4.1 billion and brand advertising at $392 million in 2017.
- 6The company adopted a new revenue recognition accounting standard effective January 1, 2018, changing the presentation of revenue recognition from 'check-out' to 'check-in'.
- 7Acquisition of Momondo Group in July 2017 for $555.5 million, enhancing the KAYAK meta-search business.