Priceline Group Beats but Guides Lower
Priceline Group (PCLN) reported 3rd Quarter September 2016 earnings of $31.84 per share on revenue of $3.7 billion. The consensus earnings estimate was $29.30 per share on revenue of $3.6 billion. The Earnings Whisper number was $29.93 per share. Revenue grew 18.9% on a year-over-year basis.
The company said it expects fourth quarter non-GAAP earnings of $12.20 to $12.80 per share. The current consensus earnings estimate is $13.71 per share for the quarter ending December 31, 2016.
Priceline Group Inc
is a provider of online travel and travel related reservation and search
services. The Company offer consumers accommodation reservations through its
Booking.com, priceline.com and agoda.com brands.
The Priceline Group Reports Financial Results for 3rd Quarter 2016
NORWALK, CT – November 7, 2016. . . The Priceline Group Inc. (NASDAQ: PCLN) today reported its 3rd
quarter 2016 financial results. Third quarter gross travel bookings for The Priceline Group (the "Company," the
"Group," "we," "our," or "us"), which refers to the total dollar value, generally inclusive of all taxes and fees, of all
travel services purchased by its customers, net of cancellations, were $18.5 billion, an increase of 25% over a year
ago (approximately 26% on a constant-currency basis).
The Group's gross profit for the 3rd quarter was $3.6 billion, a 22% increase from the prior year (approximately 23%
on a constant-currency basis). International operations contributed gross profit in the 3rd quarter of $3.3 billion, a
25% increase versus a year ago (approximately 26% on a constant-currency basis).
Net income in the 3rd quarter was $506 million, a 58% decrease versus the prior year. Net income was $10.13 per
diluted share, a 57% decrease as compared to the prior year. Net income and net income per diluted share for the
3rd quarter were negatively impacted by a non-cash charge of $941 million relating to an impairment of OpenTable's
goodwill. The impairment charge is a result of a change in business strategy as it relates to OpenTable's
international expansion and other growth opportunities. This change in strategy resulted in OpenTable updating its
forecasted financial results to reflect a material reduction in forecasted long-term financial results from these
initiatives. While OpenTable will continue to pursue these growth opportunities, they will do so on a more
measured and deliberate basis.
Non-GAAP net income was $1.6 billion, a 20% increase versus the prior year. Non-GAAP net income was $31.18
per diluted share, a 23% increase compared to $25.35 per diluted share a year ago. FactSet consensus for 3rd
quarter non-GAAP net income was $29.92 per diluted share. Adjusted EBITDA for the 3rd quarter 2016 was $1.9
billion, an increase of 19% versus a year ago. Non-GAAP net income, non-GAAP net income per diluted share and
adjusted EBITDA exclude the goodwill impairment charge related to OpenTable discussed above, as well as other
non-GAAP adjustments detailed below. The section below entitled "Non-GAAP Financial Measures" provides
definitions and information about the use of non-GAAP financial measures in this press release, and the attached
financial and statistical supplement reconciles non-GAAP financial information with the Group's financial results
“The Priceline Group brands executed well during our peak summer travel season,” said Jeffery H. Boyd, Chairman
and Interim Chief Executive Officer of The Priceline Group. “Globally, our accommodation business booked 150
million room nights in the 3rd quarter, up 29% over the same period last year. The acceleration in room night
growth demonstrates the favorable market in which we operate as well as the value of our diverse global platform.”
Looking forward to the 4th quarter, Mr. Boyd said, “We will continue to invest in smartly marketing our brands and
in the tools and technology that benefit both our customers and partners in the online travel marketplace. We also
look forward to pushing ahead with OpenTable to build on their strong brand with a strategy that supports both
building the core business and international expansion at a more measured pace.”
For the full press release, please go here.