Summary
Booking Holdings Inc. (formerly Priceline.com Incorporated) reported strong financial performance for the nine months ended September 30, 2011, driven by significant growth in its international operations, particularly through the Booking.com brand. Total revenues grew by 43.0% year-over-year to $3.36 billion, with agency revenues showing robust growth of 73.7% due to international hotel bookings. Gross profit increased by 64.6% to $2.36 billion, accompanied by an expansion in gross margin from 60.8% to 70.0%, indicating improved profitability on a per-revenue basis. The company also highlighted substantial growth in gross bookings, up 60.9% to $16.7 billion, with international gross bookings surging by 82.6%. Financially, the company maintained a strong liquidity position, ending the period with $421.2 million in cash and cash equivalents and $1.98 billion in short-term investments. Significant investments in online advertising, a 67.6% increase for the nine-month period, were made to fuel this growth. The company also addressed ongoing litigation regarding hotel occupancy taxes, maintaining a reserve of $31 million for potential resolutions. Looking ahead, Booking Holdings has secured a new $1 billion revolving credit facility, demonstrating its continued access to capital.
Financial Highlights
52 data points| Revenue | $1.45B |
| Cost of Revenue | $352.66M |
| Gross Profit | $1.10B |
| Operating Expenses | $483.77M |
| Operating Income | $616.38M |
| Interest Expense | $7.88M |
| Net Income | $469.50M |
| EPS (Basic) | $9.43 |
| EPS (Diluted) | $9.17 |
| Shares Outstanding (Basic) | 49.78M |
| Shares Outstanding (Diluted) | 51.18M |
Key Highlights
- 1Total revenues increased by 43.0% to $3.36 billion for the nine months ended September 30, 2011, compared to the prior year period.
- 2Gross profit surged by 64.6% to $2.36 billion, with gross margin expanding significantly from 60.8% to 70.0%.
- 3International operations remain a key growth driver, with international gross bookings up 82.6% to $12.99 billion.
- 4Agency revenues grew by 73.7% to $1.79 billion, largely attributed to strong performance from Booking.com.
- 5The company ended the period with a strong cash position, holding $421.2 million in cash and cash equivalents and $1.98 billion in short-term investments.
- 6Online advertising spend increased by 67.6% to $701.3 million, reflecting investment in growth.
- 7A reserve of $31 million has been established for potential resolutions related to hotel occupancy and other tax litigation.