Expedia's second-quarter revenue rose 14% from a year earlier and beat analysts' estimates primarily on a jump in hotel bookings. Earnings for the online travel agency (OTA) fell from a year earlier, when the company still owned travel review site TripAdvisor.
Expedia's revenue increased to $1.04 billion, from $913.6 million a year earlier, and beat the $989.6 million average estimate of analysts in a Thomson Reuters survey.
Revenue from hotel bookings rose 16% as a 22% increase in room nights more than offset a 5% decline in revenue collected per night. Revenue from airline tickets fell 8% as a 3% increase in tickets sold was more than offset by an 11% drop in revenue per ticket.
Net income fell to $105.2 million, from $140.4 million a year earlier. Year-earlier results included $52.8 million in earnings from discontinued operations, which included the TripAdvisor travel-review division that was spun off in December. Income from continuing operations increased 20% from a year earlier to $106.1 million.
Expedia was overtaken by Priceline in 2010 in global OTA revenue but remains the largest OTA for U.S. customers; it ranks No. 2 in Travel Weekly's 2012 Power List.
Priceline reports second-quarter earnings on Aug. 7. Follow Danny King on Twitter @dktravelweekly.