10-QPeriod: Q2 FY2020

Booking Holdings Inc. Quarterly Report for Q2 Ended Jun 30, 2020

Filed August 6, 2020For Securities:BKNG

Summary

Booking Holdings Inc. (BKNG) reported a challenging second quarter ending June 30, 2020, significantly impacted by the global COVID-19 pandemic. Total revenues plummeted by 83.7% year-over-year to $630 million, reflecting the severe downturn in global travel. The company incurred a net loss of $122 million for the quarter, a stark contrast to the $979 million net income in the prior year, driven by drastic reductions in room nights booked and a decline in average daily rates. Despite the adverse conditions, Booking Holdings has taken steps to bolster its liquidity and manage costs. The company raised $4.1 billion in debt in April 2020 and amended its credit facility to provide additional flexibility. Cost-saving measures include workforce reductions, reduced marketing spend, and executive salary concessions. The company ended the quarter with a strong cash position of $10.4 billion, providing a buffer against the ongoing uncertainty. Investors should monitor the pace of travel recovery and the company's ability to manage operational costs as the pandemic situation evolves.

Financial Highlights

48 data points
Beta

Revenue

$630.00M

Net Income

$122.00M

19.4% Net Margin

EPS (Diluted)

$0.12

Total Assets

$20.91B

Cash & Equivalents

$10.42B

Free Cash Flow

$52.00M

Financial Statements
Beta
Revenue$630.00M
Operating Expenses$1.11B
Operating Income-$484.00M
Interest Expense$96.00M
Net Income$122.00M
EPS (Basic)$0.12
EPS (Diluted)$0.12
Shares Outstanding (Basic)1.02B
Shares Outstanding (Diluted)1.02B

Key Highlights

  • 1Total revenues declined sharply by 83.7% year-over-year to $630 million due to the COVID-19 pandemic's impact on global travel.
  • 2The company reported a net loss of $122 million for the quarter, compared to a net income of $979 million in Q2 2019.
  • 3Accommodation room nights booked decreased by 86.7% year-over-year, reflecting the severe impact on travel demand.
  • 4The company raised $4.1 billion in debt in April 2020 and amended its credit facility to enhance financial flexibility.
  • 5Significant cost-saving measures were implemented, including workforce reductions of approximately 1,700 employees across several brands, and a substantial decrease in marketing expenses.
  • 6Booking Holdings maintained a strong liquidity position with $10.4 billion in cash, cash equivalents, and long-term investments at the end of the quarter.
  • 7A goodwill impairment charge of $489 million was recognized for the OpenTable and KAYAK reporting unit due to the pandemic's impact on forecasted cash flows.

Frequently Asked Questions

The COVID-19 pandemic had a severe negative impact. Total revenues decreased by 83.7% to $630 million, and the company reported a net loss of $122 million compared to a net income of $979 million in the prior year's second quarter. This was primarily driven by a dramatic drop in travel bookings, with accommodation room nights declining by 86.7%.

Booking Holdings has focused on liquidity and cost management. They raised $4.1 billion in debt, amended their credit facility for greater flexibility, significantly reduced marketing spend, initiated workforce reductions impacting approximately 1,700 employees, and implemented other cost-saving measures. They also benefited from government assistance programs.

The company maintained a strong liquidity position, ending the quarter with $10.4 billion in cash, cash equivalents, and long-term investments, providing a significant buffer to navigate the ongoing market uncertainty.

Yes, due to the significant negative financial impact of the COVID-19 pandemic on forecasted cash flows, Booking Holdings recognized a non-deductible goodwill impairment charge of $489 million related to its OpenTable and KAYAK reporting unit.