TripAdvisor reports rise in restaurant and experiences revenue

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TripAdvisor reported a slight decrease in revenue for the first quarter of 2019, which was 1% down year-on-year at $376 million.

The company says that excluding currency fluctuations, revenue grew by about 2%, with its core non-hotel divisions contributing to the growth.

Net income increased 420% to $26 million for the quarter while adjusted EBITDA was up 11% to $89 million.

Revenue for the Hotels, Media & Platform segment was flat at $254 million, with EBITDA up 36% to $105 million.

Experiences & Dining revenue was up 29% to $80 million, and the company says a $24 million loss for the segment reflects its investments for long-term growth. 

TripAdvisor is investing in product development around experiences and dining as well as "sales talent" in the U.S., Europe and Asia Pacific. 

One example is its "Traveler Ranked" sort order for experiences, which is now based on metrics such as browsing behavior, traveler interest, photos and latest reviews.

Other revenue for the company, which includes rentals, flights/cruise, SmarterTravel and TripAdvisor China, was down a third to $42 million. The company puts this down to the "elimination of some marginal and unprofitable revenue" within non-TripAdvisor branded offerings.

During the first quarter, the company also invested $29 million in brand advertising, mostly in television, and highlighted TripAdvisor Experiences in its campaigns.

Commenting on the earnings, CEO Steve Kaufer said: "In Q1, we grew profit and while investing in and growing our strategically important Experiences and Restaurants businesses."

He added that the company is focusing on product improvement and supply growth for 2019.
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Source: PhocusWire

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