Summary
This 8-K filing from priceline.com Incorporated (now Booking Holdings Inc.) on May 3, 2006, reports its financial results for the first quarter ended March 31, 2006. The company announced significant growth in gross travel bookings, which surged 47% year-over-year to $746.8 million. This growth was driven by strong performance in Priceline Europe, which contributed substantially to overall bookings and revenue, and showed over 100% organic growth in bookings. Despite overall booking growth, the company noted a year-over-year decrease in "opaque" airline ticket sales and margin pressure in this segment. For the second quarter of 2006, priceline.com provided guidance on advertising, sales and marketing, personnel, general and administrative, IT, and depreciation expenses. The company also issued GAAP net income per diluted share guidance for Q2 2006 and the full year 2006, with a notable expectation that Priceline Europe would account for over half of the company's "pro forma" operating income for the full year.
Key Highlights
- 1First quarter 2006 gross travel bookings increased 47% year-over-year to $746.8 million.
- 2Priceline Europe showed strong performance with $272.8 million in gross travel bookings and revenue of approximately $22.4 million in Q1 2006.
- 3Organic gross travel bookings increased approximately 33% year-over-year in Q1 2006.
- 4Priceline Europe's organic gross travel bookings grew over 100% in Q1 2006 compared to the prior year.
- 5Domestic "opaque" airline ticket sales saw a year-over-year decrease, consistent with trends from the second half of 2005, facing margin pressures.
- 6The company provided Q2 2006 guidance for various expense categories, including advertising, sales and marketing, and personnel costs.
- 7Full-year 2006 GAAP net income per diluted share is expected to be between $0.62 and $0.70.
- 8Priceline Europe is expected to represent more than half of the company's "pro forma" operating income for the full year 2006.