Priceline.com (NASDAQ: PCLN) reported that its first quarter net income jumped to $104.8 million, or $2.05 per share, from $53.9 million, or $1.06 per share, in the year-earlier quarter. On an adjusted basis, company earned $137 million, or $2.66 per share in the latest quarter. Revenue surged 39% to $809.3 million. Analysts, on average, had expected earnings of $2.44 per share on revenue of $779.3 million.
"In the 1st quarter, the Group benefitted from strong growth in our global hotel business, particularly at Booking.com and Agoda," said Jeffery H. Boyd, Priceline President and Chief Executive Officer. "Room nights booked grew by 55.8% and our international gross bookings grew by 79% compared to prior year first quarter. The Group's hotel business continues to benefit from improving ADRs, a continuing shift from offline to online bookings, increased penetration of core European and North American markets and outstanding growth in new markets throughout the Asia-Pacific region and South America."
Mr. Boyd continued, "The Group's global rental car operations grew rental car days booked by 64.7% in the 1st quarter 2011 as compared to the prior year. A significant portion of this growth can be attributed to the Group's acquisition of TravelJigsaw and its international car hire operations, which continues to grow at impressive rates. Priceline.com's airline ticketing business returned to positive growth in the 1st quarter, with a 2.1% gain in ticket sales and improving growth in opaque ticket sales."
Looking ahead to the second quarter, Priceline Group expects 53 percent - 58 percent increase in total gross travel bookings. GAAP net income for the second quarter is expected in the range of $4.03 to $4.23 per share. Non-GAAP net income for the second quarter is expected between $4.70 and $4.90 per share. Revenues are expected to increase by about 36 percent to 41 percent, translating to $1.04 billion - $1.08 billion.
Mr. Boyd said, "Globally, we intend to retain our focus on extending our reach in established and new geographic markets and providing an outstanding consumer experience to build the strength of our brands."
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