Summary
Booking Holdings Inc. reported solid financial results for the nine months ended September 30, 2018, demonstrating continued growth across its key business segments. Total revenues reached $11.3 billion, a significant increase from the prior year, driven by strong performance in accommodation reservations, which constitute the majority of the company's revenue. Merchant revenues, in particular, saw substantial growth, reflecting the expansion of Booking.com's merchant accommodation reservation services. The company also reported robust operating income and net income, indicating effective management of operational expenses despite increased marketing spend. Key financial highlights include a substantial increase in cash and cash equivalents, reaching nearly $3 billion, and a healthy increase in net cash provided by operating activities. The company continued its aggressive share repurchase program, demonstrating a commitment to returning capital to shareholders. Despite ongoing investments in marketing and technology to drive future growth, Booking Holdings maintained strong profitability, positioning itself well for continued expansion in the global travel market.
Financial Highlights
49 data points| Revenue | $4.85B |
| Operating Expenses | $2.60B |
| Operating Income | $2.25B |
| Interest Expense | $68.00M |
| Net Income | $1.77B |
| EPS (Basic) | $37.39 |
| EPS (Diluted) | $37.02 |
| Shares Outstanding (Basic) | 47.27M |
| Shares Outstanding (Diluted) | 47.75M |
Key Highlights
- 1Total revenues increased by 16.9% year-over-year for the first nine months of 2018, reaching $11.3 billion, with accommodation reservation services being the primary driver.
- 2Merchant revenues saw significant growth of 60.7% for the nine months ended September 30, 2018, primarily due to the expansion of Booking.com's merchant accommodation reservation services.
- 3Net income for the first nine months of 2018 increased to $3.4 billion, a 15.7% rise from the same period in 2017.
- 4Gross bookings grew by 15.7% for the nine months ended September 30, 2018, driven by a 12.9% increase in accommodation room nights booked.
- 5The company repurchased approximately $4.2 billion of its common stock during the first nine months of 2018, reflecting a strong commitment to capital return.
- 6Cash, cash equivalents, and restricted cash increased to $3.0 billion at September 30, 2018, up from $2.6 billion at December 31, 2017.
- 7Effective tax rate increased to 20.2% for the first nine months of 2018 from 16.2% in the prior year, largely due to U.S. federal and state taxes on international earnings resulting from the Tax Act.