Summary
Expedia Group, Inc.'s second-quarter 2011 financial report shows robust revenue growth, driven primarily by the Leisure and TripAdvisor Media Group segments. Total revenue increased by 23% year-over-year to $1.02 billion for the quarter and 19% to $1.85 billion for the six-month period, signaling a continued recovery and expansion in the travel industry. Net income attributable to Expedia, Inc. also saw significant growth, rising to $140.4 million for the quarter ($0.50 diluted EPS) from $114.3 million in the prior year. For the six-month period, net income increased to $192.4 million ($0.69 diluted EPS) from $173.7 million. The company highlighted increased room nights stayed and higher average daily rates in its hotel business, alongside strong advertising revenue growth from TripAdvisor. Notably, the company is preparing for a spin-off of its TripAdvisor Media Group into a separate publicly traded company, expected in the fourth quarter of 2011. Financially, Expedia maintained a strong liquidity position with over $2.3 billion in cash and short-term investments. The company also generated substantial cash flow from operations, a significant portion of which was attributed to working capital benefits from its merchant model. Management expressed confidence in its ability to meet foreseeable liquidity needs.
Financial Highlights
54 data points| Revenue | $913.59M |
| Cost of Revenue | $195.81M |
| Gross Profit | $717.78M |
| Operating Income | $143.71M |
| Interest Expense | $22.49M |
| Net Income | $140.39M |
| EPS (Basic) | $1.03 |
| EPS (Diluted) | $1.01 |
| Shares Outstanding (Basic) | 136.80M |
| Shares Outstanding (Diluted) | 139.05M |
Key Highlights
- 1Revenue grew by 23% year-over-year to $1.02 billion for Q2 2011 and by 19% to $1.85 billion for the first six months of 2011.
- 2Net income attributable to Expedia, Inc. increased to $140.4 million for Q2 2011 ($0.50 diluted EPS), up from $114.3 million in Q2 2010 ($0.40 diluted EPS).
- 3The company announced plans to spin off its TripAdvisor Media Group into a separate publicly traded entity, expected to be completed in Q4 2011.
- 4Hotel revenue saw strong growth driven by an 18% increase in room nights stayed and a 5% increase in revenue per room night for the six-month period.
- 5TripAdvisor Media Group's advertising revenue grew significantly, up 34% year-over-year for the quarter, contributing to overall revenue growth.
- 6Expedia maintained a robust liquidity position with $2.3 billion in cash and cash equivalents and short-term investments as of June 30, 2011.
- 7Operating income increased by 17% to $227 million for Q2 2011, driven by revenue growth, though partially offset by increased selling and marketing expenses.