Expedia’s profit rose 50% in the third quarter as the travel site reported strong revenue growth and bookings. In the latest quarter, Expedia reported that its gross bookings climbed 29%, led largely by growth in hotel room nights and air tickets booked.
Overall, Expedia reported a profit of $257.1 million, or $1.94 a share, up from $170.9 million, or $1.43 a share, a year earlier. Excluding stock-based compensation and other items, earnings rose to $1.94 from $1.22 cents. Revenue jumped 22% to $1.71 billion, bolstered by a 29% growth in advertising and media.
Expedia has launched a bid to acquire Wotif.com Holdings Ltd. , one of Australia’s largest online travel agencies, a deal that would bolster Expedia’s business in the Asia-Pacific region. That deal remains under regulatory review.
The travel industry is under pressure as new players, from referral sites that search multiple sites to startups that offer unpublished discounts and stays in apartments and spare rooms. Travel websites responded by offering discounts and loyalty programs. Last year, Expedia joined forces with rival Travelocity.
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