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%, and its domestic business showed an 83% 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% 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.
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