Expedia Reports Profit, Bookings Increase by 20 Percent

Expedia, Inc. reported its first quarter profit was up 25 percent over the first quarter of 2007 because of increased revenue. Its gross bookings increased 20 percent for the first quarter of 2008 compared with the first quarter of 2007.

North America bookings increased 15 percent, Europe bookings increased 34 percent (25 percent excluding the net benefit from foreign exchange) and other bookings (primarily Expedia Corporate Travel and our Asia Pacific operations) increased 31 percent.

For the quarter ended March 31, earnings jumped to $51.3 million, or 17 cents per share, from $34.8 million, or 11 cents per share, a year ago. Revenue increased 25 percent for the first quarter, primarily driven by increased worldwide merchant hotel revenue and advertising and media revenue.

North America revenue increased 22 percent, Europe revenue increased 33 percent and other revenue increased 38 percent.

Worldwide merchant hotel revenue increased 22 percent for the first quarter due to a 23 percent increase in room nights stayed, including rooms delivered as a component of vacation packages, offset slightly by a 1 percent decrease in revenue per room night.

Revenue per room night decreased due to a 108 basis point decline in hotel margin, partially offset by a 3 percent increase in worldwide average daily rates. Worldwide air revenue increased 18 percent for the first quarter due to an 11 percent increase in air tickets sold and a 6 percent increase in revenue per air ticket.

Worldwide revenue from products and services other than merchant hotel and air (including advertising and media, car rentals, destination services, agency hotel and cruises), increased 39 percent for the first quarter due primarily to increased advertising and media revenues and car rental revenues.