Hotels.com Q2 Earnings Jump On More Bookings

DALLAS— Online hotel booking agent Hotels.com reported second-quarter earnings rose sharply as revenue climbed 66% on a strong increase in booking volume. The website reported earnings of $22.1 million, or $0.38 per share, up from $15 million, or $0.26 a share, a year earlier. The figures exclude non-cash expenses, non-cash marketing and distribution expenses. The company said in a statement that revenue rose to $229.7 million from $138.3 million, helped by more room nights sold and the March launch of its website and brand, hotels.com. Analysts polled by Thomson First Call had forecast, on average, earnings of $0.36 cents per share and revenue of $213 million. Adjusted EBITDA rose nearly 56% to $32.9 million from $21 million a year-earlier. In January, the company had set out targets for the year, expecting 2002 revenue of $775 million, EBITDA of $110 million, and adjusted earnings of $1.30 a share. Based on the companys first-half performance and expectations for the rest of the year, Hotels.com raised its targets. The company said it now expects to beat its 2002 revenue target by 21%, its adjusted EBITDA target by 24% and adjusted earnings per share by 20%. The company said it expects third quarter revenue to grow 9% from second quarter levels and it expects fourth quarter revenue to grow 16% from the third quarter. SOURCE: Reuters