Expedia profit falls as it faces a legal fight with United Airlines

Earnings


Expedia boosted fourth-quarter revenue by selling more hotel rooms and airline tickets, but write-downs pushed profit down 69 percent, to $17 million.

The results still beat expectations for the online travel agency.

The shares jumped $9.13, or 7 per cent, to $137 in extended trading Thursday after losing a penny in the regular session. At Thursday’s close, the stock had gained 13.5 per cent since the beginning of the year, while the Standard & Poor’s 500 index rose nearly 9 per cent.

Expedia said that fourth-quarter adjusted profit was $1.18 per share, topping the $1.07 average forecast of 11 analysts surveyed by Zacks Investment Research.

Revenue rose 10 percent to $2.56 billion. Eleven analysts surveyed by Zacks expected $2.54 billion.

About two-thirds of Expedia sales come from booking lodging on sites including Hotels.com, and that revenue grew 10 per cent. Growth in the vacation-rental segment HomeAway — a competitor to Airbnb — slowed to 20 per cent in the fourth quarter but grew 29 per cent for the full year.



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