Boosted by Strong Bookings, Priceline Beats Earning Estimates

An increase in gross travel bookings helped Priceline sprint past earnings estimates as the company posted net income of $18.2 million for the first quarter of 2008.

The Norwalk, Conn.-based online travel agency reported revenue of $403.2 million for the first quarter, up from $301.4 million in the first quarter of 2007. Analysts had predicted revenue of $377.2 million for the quarter.

Priceline had posted a loss of $16.3 million in the first quarter of 2007, a blip in consistently strong earnings that the company at the time attributed to non-recurring litigation costs.

In its earnings call late last week, Jeffrey Boyd, Priceline CEO, said gross travel bookings were up 51 percent, and its domestic business showed an 83 percent rise in airline ticket sales.

“With economic pressures mounting as we entered 2008, we believe that our money-saving name-your-own-price services and our value brand position made Priceline.com attractive to budget-conscious travelers,” Boyd said in a statement.

Gross travel bookings climbed to $1.76 billion, 76 percent higher than in the first quarter of last year. Priceline said it expects to generate between $7.5 billion and $7.9 billion in gross travel bookings for the full year.