Priceline reported half-year profits up by one third to $907 million in second-quarter results, with a net quarterly profit of $576 million.
Priceline revenue soars along with ad spend
Priceline reported half-year profits up by one third to $907 million in second-quarter results, with a net quarterly profit of $576 million.
The US giant, owner of Booking.com, posted a 26% rise in revenue for the quarter to $2.1 billion and a 34% increase in booking turnover to $13.5 billion.
However, analysts noted Priceline’s advertising spending grew 40% in the quarter to $700 million – totalling one third of revenues – and offline ad spending doubled year on year.
Priceline handled close to 90 million hotel room nights in the three months, up 29% on a year earlier, although the year-on-year growth was down on the previous eight quarters.
Car rental days booked were up 14% year on year at 14.3 million and airline ticket sales up 22% at 2.1 million.
Priceline chief executive Darren Huston said: “Priceline achieved strong results as the summer travel season got off to a solid start for our brands.
“The group delivered market-leading growth from both a top line and profitability perspective.”
Huston added: “The business is performing well. We believe our recently announced expanded partnership with Ctrip will complement these efforts.”
Priceline announced the $500-million acquisition of a 10% stake in Ctrip, China’s biggest online travel agent (OTA), last week.
