Natural disasters in the third quarter cost Expedia Inc.,
CEO Mark Okerstron said during the company's earnings call on Thursday.
EBITDA (earnings before interest, taxes, depreciation and
amortization) was $709 million, a 6% increase over last year's third quarter.
Room nights stayed increased 16%, a slower pace than in the second quarter,
when room nights stayed grew 21%.
"Our results this quarter were negatively impacted by
the record storms that hit the Americas beginning in late August and continued
through mid-September," Okerstrom said. "Excluding estimated impacts
from these natural disasters, adjusted EBITDA would have improved by
approximately $15-$20 million, and our total stayed room nights would have
grown largely in line with the first half of 2017."
CFO Alan Pickerill said bookings were impacted by the storms
primarily through a slowdown in domestic room nights booked during the period
of mid-August through September. Revenue was impacted through a combination of
canceled room nights and refunds. During that period, Pickerill said Expedia
issued more refunds than normal.
Expedia reported net income of $352.2 million in the third
quarter, a 26% increase. Revenue grew 15%, to $2.97 billion.
Expedia stock fell 15% in after-hours trading on Thursday
after the company missed estimates. Expedia's earnings per share in the third
quarter was $2.51, falling short of Wall Street expectations by 11 cents. Revenue
missed expectations by $10 million.
Thursday's earnings call was Okerstrom's first since he
assumed the head role at Expedia following Dara Khosrowshahi's departure for
Uber.