Orbitz Worldwide's fourth-quarter revenue beat analysts’ estimates on a surge in hotel bookings, but the online travel agency’s loss widened from a year earlier on a large impairment charge.
Hotel-booking revenue jumped 18% from a year earlier on a boost in average daily rate as well as a 7% increase in room nights booked.
However, Orbitz's gross bookings fell 1.8% to $2.47 billion. In comparison, Expedia Inc.'s fourth-quarter gross bookings surged 19% to $7.53 billion.
Orbitz’s revenue rose 7.1% to $189.7 million, beating the $184.9 million average estimate of analysts in a Thomson Reuters survey. Orbitz shares were up about 15% in Thursday afternoon trading.
Orbitz’s fourth-quarter net loss widened to $314.6 million from a $46.5 million loss a year earlier on a $321.2 million impairment charge.
The noncash charge was due to a decrease in the fair value of goodwill and intangible assets related to Orbitz's domestic businesses.
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