Summary
Expedia Group, Inc. reported a strong performance for the second quarter and first half of 2010, demonstrating significant year-over-year growth across key financial metrics. Revenue increased by 8% in the second quarter and 10% in the first half, driven by growth in both the Leisure and TripAdvisor Media Network segments, with substantial increases in advertising and media revenue. This revenue growth translated into a significant improvement in operating income, which rose 69% in the second quarter and 47% in the first half, benefiting from the absence of large one-time charges recorded in the prior year, such as occupancy tax assessments and restructuring costs. Financially, the company showed robust cash flow generation, with net cash provided by operating activities increasing by $88 million in the first half of 2010. While investing activities used more cash due to increased investment purchases, the company managed its financing activities, including share repurchases and dividend payments, effectively. Expedia's balance sheet remained solid, with cash and cash equivalents increasing to $795.8 million. The company also made progress in resolving legal matters, notably reducing its reserve for occupancy tax litigation and achieving settlements in principle for several cases, indicating a potential reduction in future legal costs and uncertainties.
Financial Highlights
56 data points| Revenue | $751.54M |
| Cost of Revenue | $168.57M |
| Gross Profit | $582.97M |
| Operating Income | $126.54M |
| Interest Expense | $20.21M |
| Net Income | $114.26M |
| EPS (Basic) | $0.80 |
| EPS (Diluted) | $0.79 |
| Shares Outstanding (Basic) | 142.04M |
| Shares Outstanding (Diluted) | 144.49M |
Key Highlights
- 1Total revenue increased by 8% for the three months ended June 30, 2010, and 10% for the six months ended June 30, 2010, compared to the same periods in 2009.
- 2Operating income saw substantial growth, increasing by 69% in the second quarter and 47% in the first half, largely due to the absence of significant one-time charges from the prior year.
- 3Net cash provided by operating activities increased by $88 million for the six months ended June 30, 2010, reaching $933.3 million.
- 4The company's cash and cash equivalents balance grew to $795.8 million as of June 30, 2010.
- 5Legal proceedings related to hotel occupancy taxes showed progress, with several settlements in principle reached and a reduction in the reserve for potential settlements.
- 6Expedia announced and paid quarterly cash dividends of $0.07 per share in the first and second quarters of 2010.
- 7Share repurchases continued, with 8.4 million shares bought back for $188 million in the first half of 2010.