TripAdvisor Q2 Profits Jump 26 Percent, Says Metasearch Boost Is Still to Come
TripAdvisor had a great quarter and expects an additional year-end boost from its new hotel metasearch and first-ever ad campaign, which will hit international markets in the second half of this year.
TripAdvisor Inc reported a 26 percent jump in quarterly profit as more people visited the company’s travel website, generating higher advertising revenue, sending its shares up 18 percent in after-hours trading.
The company aggregates reviews and opinions about destinations and accommodations and depends on ads and subscriptions for revenue.
TripAdvisor has been trying to create a larger presence in advertising through television, radio and print media. The company said it kicked off its first offline ad campaign in the second quarter.
Revenue from click-based advertising rose 21 percent to $182.8 million for the second quarter ended June. It accounted for 74 percent of total revenue. The company also reported sizeable jumps in display- and subscription-based advertising.
Total revenue jumped 25 percent to $246.9 million.
Net income attributable to TripAdvisor rose to $67 million, or 46 cents per share, from $53 million, or 37 cents per share, a year earlier. Excluding one-time items, the company earned 52 cents per share.
Analysts on average were expecting earnings of 49 cents per share on revenue of $236.6 million, according to Thomson Reuters I/B/E/S.
The company’s shares were trading at $72 in extended trade after closing at $61.14 on the Nasdaq on Wednesday. They have gained about 45 percent so far this year.
Reporting by Sagarika Jaisinghani in Bangalore.
Copyright (2013) Thomson Reuters.
Additional notes from Skift:
- Next quarter will be the first in which TripAdvisor’s new hotel metasearch service is fully rolled out, which CEO Steve Kaufer expects will have a “significant impact” on Q3 earnings.
- During the earnings call, Kaufer also explained that app downloads have increased 125 percent year-over-year to 50 million downloads. The download growth was driven by acquired assets GateGuru and JetSetter.