Summary
Booking Holdings Inc. (formerly The Priceline Group Inc.) reported its financial results for the third quarter and first nine months of 2015. The company demonstrated strong top-line growth, with total revenues increasing by 9.4% year-over-year for both periods, reaching $3.1 billion and $7.2 billion, respectively. Gross profit also saw significant growth, up 12.5% and 13.6% for the respective periods, indicating improved profitability metrics. This growth was largely driven by a robust performance in agency revenues, particularly from its Booking.com platform, which saw a 11.7% and 11.1% increase in agency revenues. The company's international operations continue to be the primary growth engine, with international gross bookings increasing by 8.3% and 11.2% on a reported basis for the three and nine months ended September 30, 2015. Despite strong revenue growth, the company's financial results were impacted by the significant strengthening of the U.S. Dollar against major currencies like the Euro. This foreign exchange headwind negatively affected reported international revenues and gross profit. The company also continued its share repurchase program, authorizing significant amounts for buybacks, and maintained a strong liquidity position with $9.4 billion in cash, cash equivalents, and investments as of September 30, 2015. Key operational highlights include a substantial increase in accommodation room nights booked, up 22.0% and 24.5% for the three and nine months, respectively.
Financial Highlights
53 data points| Revenue | $3.10B |
| Cost of Revenue | $155.62M |
| Gross Profit | $2.95B |
| Operating Expenses | $1.46B |
| Operating Income | $1.49B |
| Interest Expense | $41.44M |
| Net Income | $1.20B |
| EPS (Basic) | $23.67 |
| EPS (Diluted) | $23.41 |
| Shares Outstanding (Basic) | 50.55M |
| Shares Outstanding (Diluted) | 51.13M |
Key Highlights
- 1Total revenues grew 9.4% to $3.1 billion for the three months ended Sept 30, 2015, and 9.4% to $7.2 billion for the nine months ended Sept 30, 2015.
- 2Gross profit increased by 12.5% for the three months and 13.6% for the nine months ended Sept 30, 2015, with gross margin improving due to a shift towards net revenue recognition models.
- 3International gross bookings showed strong growth of 8.3% and 11.2% for the three and nine months, respectively, underscoring the company's global reach.
- 4Accommodation room nights booked increased significantly by 22.0% for the three months and 24.5% for the nine months ended Sept 30, 2015, highlighting robust demand for accommodations.
- 5The company's significant international cash balance of approximately $8.7 billion as of Sept 30, 2015, provides strong liquidity.
- 6The company repurchased approximately $2.3 billion of its common stock in the first nine months of 2015, demonstrating a commitment to returning capital to shareholders.