01—Abstract
Summary
Summary of the 10-Q filed November 7, 2019. Cited figures are marked; the original filing is the authoritative source.
Booking Holdings Inc. reported solid financial performance for the nine months ended September 30, 2019, with total revenues growing 3.6% year-over-year to $11.727 billiona.
Net income for the period increased to $3.694 billionb, reflecting strong operational execution and strategic investments. The company saw a significant increase in merchant revenues (up 25.8%) driven by the expansion of its merchant accommodation reservation services, while agency revenues saw a slight decline. Gross bookings grew by 3.5% to $75.730 billion, with accommodation room nights increasing by a robust 11.0%, indicating continued demand for travel services.
Operationally, Booking Holdings maintained a strong focus on customer acquisition and brand building, with significant investments in performance and brand marketing. Despite some foreign currency headwinds impacting reported growth, the company demonstrated resilience.
Key financial highlights include a substantial increase in cash and cash equivalents, robust operating cash flow, and continued share repurchases, underscoring a healthy financial position. Investors will note the strategic investments in growth initiatives and the company's ongoing efforts to navigate a competitive global travel market.
02—Key points
Key Highlights
- Total revenues for the nine months ended September 30, 2019, increased by 3.6% to $11.727 billion.
- Net income for the nine months ended September 30, 2019, rose to $3.694 billion from $3.352 billion in the prior year.
- Gross bookings increased by 3.5% to $75.730 billion for the nine months ended September 30, 2019.
- Accommodation room night reservations grew by a strong 11.0% for both the three and nine months ended September 30, 2019.
- Merchant revenues increased significantly by 25.8% for the nine months ended September 30, 2019, driven by expansion in merchant accommodation services.
- Cash and cash equivalents, short-term and long-term investments totaled $11.8 billion at September 30, 2019, with $3.8 billion held by international subsidiaries.
- The company repurchased $6.8 billion of common stock during the nine months ended September 30, 2019.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2019filed November 7, 2019Financial Statements
Q3 FY2019 against Q3 FY2018
| Line item | Q3 FY2019Q3 FY2018 | Change |
|---|---|---|
| Revenue | $5.04B$4.85B | +3.9% |
| Operating Expenses | $2.67B$2.60B | +2.6% |
| Operating Income | $2.37B$2.25B | +5.5% |
| Interest Expense | $70.00M$68.00M | +2.9% |
| Net Income | $1.95B$1.77B | +10.3% |
| EPS (Basic) | $1.84$1.50 | +23.1% |
| EPS (Diluted) | $1.82$1.48 | +23.0% |
| Shares Outstanding (Basic) | 1.06B1.18B | −10.3% |
| Shares Outstanding (Diluted) | 1.07B1.19B | −10.3% |
05—Questions
Frequently Asked Questions
What was Booking Holdings' revenue growth for the nine months ended September 30, 2019?
Booking Holdings reported total revenues of $11.727 billion for the nine months ended September 30, 2019, an increase of 3.6% compared to the same period in the prior year. On a constant-currency basis, revenues grew by approximately 8%.
How did the company's profit performance fare in the first nine months of 2019?
The company reported a net income of $3.694 billion for the nine months ended September 30, 2019, up from $3.352 billion in the comparable period of 2018. This increase reflects strong operational performance and strategic growth initiatives.
What drove the increase in merchant revenues?
Merchant revenues saw a substantial increase of 25.8% for the nine months ended September 30, 2019. This growth was primarily attributed to the expansion of Booking.com's merchant accommodation reservation services, which aim to provide more payment options to consumers and travel service providers.
What is the company's cash position and how is it being utilized?
At September 30, 2019, Booking Holdings held $11.8 billion in cash, cash equivalents, and short-term and long-term investments. The company continued its aggressive share repurchase program, buying back $6.8 billion of its common stock during the first nine months of 2019, indicating a strong commitment to returning capital to shareholders.
06—Continue